Regal Beloit Corporation News
Regal Beloit Reports 21% Earnings Per Share Increase
Net sales increased 28.1% to
The gross profit margin for the first quarter of 2008 was 22.8% as compared to the 23.2% reported for the first quarter of 2007. The gross margin for the acquired businesses was 20.8%. For the legacy businesses, raw material and other inflation, net of the impact of product price increases was
Cash flow from operations increased 235.6% to
On
The purchase price was
"Given the difficult residential markets and raw material cost environments, we are quite pleased with our results for the first quarter. New products, continuous improvement in execution, and our geographic diversification are driving solid results," commented
Knueppel added, "While we remain cautious due to the unprecedented inflation in raw materials and, to a lesser degree, the speculation regarding the strength of end markets, we are confident in our ability to deliver solid results. Accordingly our Board of Directors approved our fourth dividend increase in as many years and we remain committed to increasing shareholder value through the combination of acquisitions and share buybacks. For the second quarter we expect earnings per share to be in the range of
Regal
About REGAL BELOIT CORPORATION:
Regal Beloit Corporation is a leading manufacturer and marketer of branded mechanical and electrical motion control and power generation products serving markets throughout the world. Regal
CAUTIONARY STATEMENT
This Quarterly Report contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management's judgment regarding future events. In many cases, you can identify forward-looking statements by terminology such as "may," "will," "plan," "expect," "anticipate," "estimate," "believe," or "continue" or the negative of these terms or other similar words. Actual results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors, including:
— economic changes in global markets where we do business, such as currency exchange rates, inflation rates, interest rates, recession, foreign government policies and other external factors that we cannot control; — unanticipated fluctuations in commodity prices and raw material costs; — cyclical downturns affecting the global market for capital goods; — unexpected issues and costs arising from the integration of acquired companies and businesses; — marketplace acceptance of new and existing products including the loss of, or a decline in business from, any significant customers; — the impact of capital market transactions that we may effect; — the availability and effectiveness of our information technology systems; — unanticipated costs associated with litigation matters; — actions taken by our competitors; — difficulties in staffing and managing foreign operations; and — other risks and uncertainties including but not limited to those described in Item 1A-Risk Factors of the Company's Annual Report on Form 10-K filed on February 27, 2008 and from time to time in our reports filed with U.S. Securities and Exchange Commission.
All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary statements. The forward-looking statements included in this Form 10-K are made only as of their respective dates, and we undertake no obligation to update these statements to reflect subsequent events or circumstances. See also Item 1A - Risk Factors in the Company's Annual Report on Form 10-K filed on
STATEMENTS OF INCOME In Thousands of Dollars (Unaudited) Three Months Ended March 29, March 31, 2008 2007 Net Sales $536,343 $418,646 Cost of Sales 414,244 321,419 Gross Profit 122,099 97,227 Operating Expenses 64,487 49,896 Income From Operations 57,612 47,331 Interest Expense 7,219 5,066 Interest Income 384 89 Income Before Taxes & Minority Interest 50,777 42,354 Provision For Income Taxes 18,012 14,690 Income Before Minority Interest 32,765 27,664 Minority Interest in Income, Net of Tax 598 851 Net Income $32,167 $26,813 Earnings Per Share of Common Stock: Basic $1.03 $0.87 Assuming Dilution $0.97 $0.80 Cash Dividends Declared $0.15 $0.14 Weighted Average Number of Shares Outstanding: Basic 31,316,878 30,814,312 Assuming Dilution 33,117,034 33,547,519 CONDENSED BALANCE SHEETS In Thousands of Dollars (Unaudited) March 29, December 29, ASSETS 2008 2007 Current Assets: Cash and Cash Equivalents $50,531 $42,574 Receivables and Other Current Assets 411,728 367,717 Inventories 307,261 318,200 Total Current Assets 769,520 728,491 Net Property, Plant and Equipment 358,528 339,343 Other Noncurrent Assets 779,660 794,413 Total Assets $1,907,708 $1,862,247 LIABILITIES AND SHAREHOLDERS' INVESTMENT Accounts Payable $202,462 $183,215 Other Current Liabilities 116,625 128,705 Long-Term Debt 550,694 558,918 Deferred Income Taxes 70,210 75,055 Other Noncurrent Liabilities 61,184 47,783 Minority Interest in Consolidated 11,602 10,542 Subsidiaries Shareholders' Investment 894,931 858,029 Total Liabilities and Shareholders' Investment $1,907,708 $1,862,247 SEGMENT INFORMATION In Thousands of Dollars (Unaudited) Mechanical Segment Electrical Segment Three Months Ended Three Months Ended March 29, March 31, March 29, March 31, 2008 2007 2008 2007 Net Sales $55,114 $54,594 $481,229 $364,052 Income from Operations $8,066 $6,881 $49,546 $40,450 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands of Dollars (Unaudited) Three Months Ended March 29, 2008 March 31, 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $32,167 $26,813 Adjustments to reconcile net income to net cash provided by operating activities; Depreciation and amortization 14,152 9,883 Minority interest 598 851 Excess tax benefit from stock-based compensation (452) (3,310) Loss (gain) on sale of assets, net 70 8 Stock-based compensation expense 882 865 Change in assets and liabilities, net (12,551) (24,703) Net cash provided by operating activities 34,866 10,407 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment (13,646) (12,163) Business acquisitions, net of cash acquired 374 (565) Sale of property, plant and equipment 1,149 — Net cash used in investing activities (12,123) (12,728) CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from short-term borrowing — 9,200 Payments of long-term debt (113) (225) Net repayments under revolving credit facility (8,200) (200) Net proceeds from commercial paper borrowings — 125 Dividends paid to shareholders (4,700) (4,345) Purchases of treasury stock (4,191) — Proceeds from the exercise of stock options 1,364 747 Excess tax benefits from stock-based compensation 452 3,310 Net cash (used in) provided by financing activities (15,388) 8,612 EFFECT OF EXCHANGE RATES ON CASH 602 275 Net increase in cash and cash equivalents 7,957 6,566 Cash and cash equivalents at beginning of period 42,574 36,520 Cash and cash equivalents at end of period $50,531 $43,086
SOURCE Regal Beloit Corporation
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