ROK - Rockwell Automation Inc. (ROK) Q2 2024 Earnings Call Transcript

2024-05-07 12:28:08 ET

Rockwell Automation, Inc. (ROK)

Q2 2024 Results Conference Call

May 7, 2024 08:30 AM ET

Company Participants

Aijana Zellner - Head of IR

Blake Moret - Chairman and CEO

Nick Gangestad - CFO

Conference Call Participants

Andy Kaplowitz - Citigroup

Nigel Coe - Wolfe Research

Julian Mitchell - Barclays

Noah Kaye - Oppenheimer

Steve Tusa - JPMorgan

Rob Mason - Baird

Joe Ritchie - Goldman Sachs

Joe O'Dea - Wells Fargo

Presentation

Operator

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.

Aijana Zellner

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 also be available on our website at the conclusion of today's call.

Before we get started, I need to remind you that our comments will include statements related to the expected future results of our company and are therefore forward-looking statements. Our actual results may differ materially from our projections due to a wide range of risks and uncertainties that are described in our earnings release and detailed in all our SEC filings.

And with that, I'll hand it over to Blake.

Blake Moret

Thanks, Aijana, and good morning, everyone. Thank you for joining us today.

Before we turn to our second quarter results on Slide 3, I'll make some initial comments. At a high level, our performance in Q2 was good, but I am not happy with the reduced guidance for the full year. The impact of high inventory levels at machine builders is larger than we expected. Orders are still expected to return to year-over-year growth in Q3 and continue to increase during the year, but the slower ramp is impacting shipments for the second half.

Consequently, here's what we are doing. We are accelerating actions to bring costs in line with the revised outlook on current year orders, aligned with the more comprehensive program to expand margins introduced during our Investor Day in November....

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