Fortive raises 2024 profit forecast on resilient demand for industrial automation

Industrial products maker Fortive raised its annual profit forecast on Wednesday as benefiting from companies increasing their spending on automation amid a tight labor market.

Businesses throughout North America are overhauling and automating their operations to boost efficiency amid escalating labor costs.

The Everett, Washington-based company now expects 2024 adjusted earnings per share in the range of $3.77 to $3.86, compared with its previous forecast of $3.73 to $3.85.

"We are confident in our raised outlook for the year, continuing our track record of compounding earnings and free cash flow growth by double-digits in 2024,” CEO James Lico said in a statement.

Fortive reported an adjusted profit of 83 cents per share, compared with analysts' average estimate of 79 cents per share.

Quarterly sales for the company, whose industrial measurement equipment and software-enabled automation are used in various industries ranging from hospitals to construction and broadcast to food, rose 4.4% to $1.52 billion.

(Reporting by Anandita Mehrotra and Shivansh Tiwary in Bengaluru; Editing by Tasim Zahid)