Q2 2024 Rockwell Automation Inc Earnings Call Transcript
Key Points
- Rockwell Automation Inc (ROK) reported good operational performance in Q2 with organic sales and adjusted EPS above expectations.
- The company has built a strong portfolio to meet the growing need for smart manufacturing, particularly in North America, which is expected to grow faster than the global market.
- Rockwell Automation Inc (ROK) is winning major new business with both traditional offerings and new sources of value across various industries.
- The company is taking accelerated actions to align costs with the revised outlook, expecting to save $100 million in the second half of this year.
- Lifecycle Services organic sales grew over 12% year-over-year, driven by strong process end markets and high-value services such as cybersecurity.
- Rockwell Automation Inc (ROK) expressed dissatisfaction with the reduced guidance for the full year due to higher than expected inventory levels at machine builders.
- Organic sales declined by 8% year-over-year, with total sales down 6.5% in the quarter.
- Software & Control organic sales were down 23% versus the prior year, significantly impacted by high product inventory levels at machine builders.
- The company has revised its fiscal 2024 sales guidance range, projecting organic sales to decline 7% at the midpoint.
- Adjusted EPS is expected to decrease 13% year-over-year at the midpoint, reflecting challenges in ramping up orders and managing inventory levels.
Thank you for holding, and welcome to Rockwell Automation's quarterly conference call. I need to remind everyone that today's conference call is being recorded. (Operator Instructions) At this time, I would like to turn the call over to Aijana Zellner, Head of Investor Relations and Market Strategy. Ms. Zellner, please go ahead.
Thank you, Julianne. Good morning, and thank you for joining us for Rockwell Automation's Second Quarter Fiscal 2024 Earnings Release Conference Call. With me today is Blake Moret, our Chairman and CEO; and Nick Gangestad, our CFO.
Our results were released earlier this morning, and the press release and charts have been posted to our website. Both the press release and charts include and our call today will reference non-GAAP measures. Both the press release and charts include reconciliations of these non-GAAP measures. A webcast of this call will be available on our website for replay for the next 30 days. For your convenience, a transcript of our prepared remarks will
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