(Reuters) – Rockwell Automation raised its annual profit forecast on Wednesday after cost cuts helped boost margins in the second quarter, sending its shares up nearly 8% in premarket trade. Demand for automation and industrial software has held up better than expected as companies revamp their factory floors to boost efficiency, even as U.S. manufacturing […]
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Rockwell Automation boosts annual profit forecast, shares jump
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(Reuters) – Rockwell Automation raised its annual profit forecast on Wednesday after cost cuts helped boost margins in the second quarter, sending its shares up nearly 8% in premarket trade.
Demand for automation and industrial software has held up better than expected as companies revamp their factory floors to boost efficiency, even as U.S. manufacturing activity decelerates with President Donald Trump’s global tariffs taking effect.
Rockwell said it would offset existing and additional tariff costs through pricing and supply chain actions.
Industrial peer Emerson Electric Co also raised its full-year profit forecast on Wednesday.
Rockwell now expects annual adjusted profit per share of between $9.20 and $10.20, up from its prior expectation of $8.60 to $9.80.
On an adjusted basis, the company reported profit of $2.45 per share for the quarter through March, compared with analysts’ estimates of $2.09, according to data compiled by LSEG.
Overall second-quarter sales fell nearly 6% to about $2 billion, but narrowly beat estimates of $1.96 billion.
(Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath)