By: Scott Davis
ROK is one of our best industrial capex bellwethers, and results this quarter suggest that trade uncertainty is starting to take a toll on spending. It’s not universal, with heavier industry markets like oil & gas and mining continuing to grow nicely, but markets such as auto and now food/bev are struggling. It was enough for ROK to cut its F2019 guide by nearly 3 percentage points at the mid-point with only one quarter left. The key question is how long this spending pause lasts, though our bias is for a recovery by early/mid calendar 2020.