Ametek cuts 2024 profit forecast on slowing demand

(Reuters) - Industrial technology solutions provider Ametek cut its annual profit forecast on Thursday, as high borrowing costs and sticky inflation force its customers to delay project expenses.

The company manufactures industrial solutions including testing and measurement instruments, medical devices and automation solutions.

Heightened borrowing costs have curtailed corporate expenditure and have resulted in a demand slowdown for the Berwyn, Pennsylvania-based company.

It now anticipates its 2024 profit per share to be in the range of $6.70 to $6.80, compared with its previous forecast of $6.74 to $6.86.

"We now expect the impact of inventory normalization within our OEM customer base will continue through the balance of 2024. Additionally, customers are turning more cautious leading to some short-term delays in project spending," CEO David Zapico said.

Ametek posted an adjusted profit per share of $1.66 for second quarter ended June 30, compared with analysts' average estimates of $1.64, according to LSEG data.

Its net sales rose 4.8% to $1.73 billion, but fell below analysts' expectations of $1.78 billion.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Anil D'Silva)