Rockwell CEO says company goes with the flow of politics
Fourth-quarter earnings exceed expectations
A day after the midterm elections, the CEO of Rockwell Automation says he wants government to focus on issues that matter to manufacturers.
“We advocate for issues, not specific candidates,” Blake Moret, chairman and chief executive officer, said in an interview.
Among those issues: foreign trade, a promanufacturing business climate and workforce development to nurture skilled help.
Rockwell, based in Milwaukee, employs about 4,000 people here. Worldwide, the company has approximately 20,000 employees.
On Wednesday, Rockwell reported fiscal fourth-quarter earnings of $345.9 million, or $2.80 per share. Earnings, adjusted for non-recurring gains, were $2.11 per share.
The results exceeded Wall Street’s expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.03 per share.
The industrial equipment and software maker posted revenue of $1.73 billion in the period, which missed Wall Street’s forecasts. Five analysts surveyed by Zacks expected $1.78 billion.
For the year, the company reported profit of $535.5 million, or $4.21 per
share. Revenue was reported as $6.67 billion.
Sales growth was across a broad range of industries including mining, food and beverage makers, and life sciences, according to Moret.
For 2019, Rockwell expects full-year earnings in the range of $8.85 to $9.25 per adjusted share.
“We are expecting another good year of growth and financial performance in fiscal 2019. While global trade tensions create uncertainty, we have not seen an impact on customer demand as industrial companies continue to focus on productivity,” he said.
“Internally, we are taking actions that are expected to mitigate the impact of tariffs on our operations. Macroeconomic indicators remain favorable across most geographies. … We have balanced exposure across a broad range of industries, and we expect heavy industries and consumer verticals to be the strongest growth drivers.”
Higher tariffs cost Wisconsin companies $95 million in August, up 47 percent from a year earlier, according to new data from Tariffs Hurt the Heartland, a national business group that’s pushing for the end to trade wars.
Rockwell rolls with the changes, good or bad, according to Moret.
“We kind of keep our head down and focus on the things that we can address, which is to help our customers in whatever industry they’re in be as productive as possible,” he said.
“When our government decides that it is necessary to implement these types of (tariffs) we favor a strategic approach. And it’s one that aligns us with our allies.”