Rockwell Automation Lowers Guidance

Rockwell Automation Inc. lowered its guidance for the year as the industrial automation company grapples with crimped commodities prices and currency headwinds.

The company, however, reported stronger-than-expected results for its fiscal first quarter ended Dec. 31.

Pointing to weakening oil and commodities prices and softer industrial production numbers, Rockwell revised its already downbeat forecast for earnings, excluding one-time items, to a range of $5.70 to $6.20 a share.

It had previously forecast $5.90 to $6.40 a share for the year. On the top line, Rockwell guided for sales of about $5.9 billion, down from its earlier call for about $6 billion.

The Milwaukee-based firm provides industrial automation and information services for manufacturers and energy producers. The company's results depend largely on investments in factories, chemical plants, and in oil gas fields.

The company has seen its business pressured by manufacturers seeking to pinch pennies amid industry headwinds. The company also faced currency pressures, with foreign exchange volatility crimping sales by 6.1% in the latest quarter.

Chief Executive Keith D. Nosbusch, who had previously said he didn't foresee any growth until the later part of 2016, said heavy industry end-market conditions had softened globally but pointed to growth in segments such as Latin America.

Organic sales, which exclude currency impacts and acquisitions, slipped by 3.3% in the quarter.

In all for the quarter ended Dec. 31, Rockwell reported a profit of $185.5 million, or $1.40 a share, down from $214.2 million, or $1.56 a share, in the year-prior period. Excluding certain items, per-share earnings fell to $1.49 from $1.56.

Revenue slid 9.4% to $1.43 billion.

Analysts polled by Thomson Reuters projected per-share earnings of $1.33 on revenue of $1.31 billion.

Shares, down 12% over the past 12 months, were inactive in premarket trading.

(END) Dow Jones Newswires

January 27, 2016 08:45 ET (13:45 GMT)

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