Fortive forecasts upbeat annual results on industrial automation demand

Fortive

31/01/2024 13:55

Jan 31 (Reuters) - Industrial conglomerate Fortive
 FTV.N  forecast its annual profit and revenue above estimates
on Wednesday, benefiting from a rise in companies increasing
spending on automation amid a tight labor market.
    The company, which sells software and services for asset
management, expects 2024 adjusted earnings per share between
$3.73 and $3.85 ahead of LSEG estimates of $3.68 per share.
    Companies across North America have been investing in
revamping and automating their facilities to reduce their labor
costs in a right market.
    Fortive, which operates through its subsidiaries, expects
full-year revenue between $6.4 and $6.5 billion, also above Wall
Street expectations. 
    The company said it had recently discovered one of its
subsidiaries, Gems Setra, which provides sensing and monitoring
technologies, had made incorrect representations to win specific
contracts from the U.S. Defense Logistics Agency (DLA).
    The Everett, Washington-based company said it had
voluntarily notified the Department of Defense Office of
Inspector General and the DLA of this matter. It does not expect
the discovery to have a "material adverse effect."
    In the fourth quarter, Fortive reported that profit rose to
$265.2 million, or $0.75 per share, from $227.2 million, or
$0.64 per share, a year earlier. Quarterly revenue rose 4% to
$1.58 billion.

 (Reporting by Anandita Mehrotra in Bengaluru; Editing by Tasim
Zahid)
 ((Anandita.Mehrotra@thomsonreuters.com;))