Rockwell Automation is forecasting stronger growth in its mining control and automation business and has upgraded its full-year sales target for FY2023 to about US$8.7 billion from $8.5 billion previously on the back of updated robust demand predictions across its key markets.
The New York Stock Exchange-listed company’s share price has climbed nearly 10% in the past month, capitalising Rockwell at more than $32.3 billion.
It booked $384 million net income in its first quarter of fiscal 2023, to the end of December, on 6.7% higher sales, year-on-year, of $1.98 billion. The net income result was $242m in Q1, 2022.
“Our strong execution and continued focus on supply chain resiliency helped Rockwell exceed our expectations in the quarter, with earnings growing double digits year over year,” the company’s CEO and chairman, Blake Moret said.
“In addition to a gradually improving supply chain environment, we are encouraged by the continued strength of our customers’ demand across all business segments and regions.”
Double-digit growth is tipped to strengthen in Rockwell’s major automotive and semi-conductor market segments, while the company is also factoring in “mid-teen” growth in mining in its 2023 forecasts, and low double-digit expansion in food and beverage, life sciences, warehousing, oil and gas, and chemicals.
Mining and metals account for more than $300m of Rockwell Automation’s annual sales, based on current forecasts.
“Automation has never been more important in solving our customers’ greatest challenges, and Rockwell is front and centre as a trusted partner in these dynamic times,” Moret said.