Rockwell Automation, Inc. (NYSE:ROK) Q3 2023 Earnings Call Transcript

Blake Moret: The main contributor to the growth in North America is really the composition of the backlog. And in fact, as we look at the orders in North America, they found pace the rest of the world year-to-date in fiscal year 2023. There are certainly anecdotes of projects that have been pushed, but we have not seen that as a prevalent trend and we continue to see low cancellation rates among within our backlog.

Nigel Coe: Okay. That’s very clear. And then Nick, your comments on sort of what a normal backlog is, and obviously higher than what it’s been in the past, but seems to suggest that we should be expecting backlog to maybe burn down towards maybe close to $3 billion. Is that fair?

Nick Gangestad: Yes. It’s dependent on what revenue is, but for those reasons that that Blake went through in our mix, we just don’t see it getting back to that 20% that it used to be, but something in the 30% to 35% range and yes, multiply that by our revenue, and that’s our best estimate now. I think in the coming quarters, we’ll keep learning more about that, but we ask for our best estimate right now. That’s where we are.

Nigel Coe: Okay. Thanks guys. Cheers.

Nick Gangestad: Thank you.

Aijana Zellner: Thank you everyone for joining us today. That concludes today’s conference call.

Operator: At this time, you may disconnect. Thank you.