Rockwell Automation Inc. recently advised that "less favorable market conditions" are causing the Milwaukee company to reduce its previous earnings guidance. The company said it expects to report third quarter diluted earnings per share of 93 cents to $1.00, and that that "no longer believes" that full-year EPS will fall within the previous annual guidance range of $4.25 to $4.45.
The company’s revenue for the month of April was consistent with original expectations. However, for the past several weeks, Rockwell has experienced slower-than-expected growth in the United States and Europe, primarily in its product businesses. The company said it is evaluating the market outlook for the balance of the year along with appropriate cost control actions and will comment further during the third quarter earnings call.
Keith Nosbusch, chairman and chief executive officer, said, "I continue to have confidence in the long-term growth prospects for this business. It appears that market growth is slowing in two key regions, and we will deal with that reality. We remain committed to delivering appropriate profitability while preserving our investments in future growth opportunities and maintaining our technology leadership."