Regal Beloit Beats Q1 Expectations

Regal Beloit Corp RBC reported upbeat results for the first quarter on Monday. The Beloit, Wisconsin-based company reported quarterly earnings of $36.4 million, or $0.81 per share, compared to $43.8 million, or $0.96 per share, in the year-ago period. Excluding items, the company earned $1.21 per share. Its revenue climbed 13.9 percent year-over-year to $911.7 million. However, analysts were expecting a profit of $1.16 per share on revenue of $894.76 million. The average estimate among 3 Estimize users was for earnings of $1.17 per share and revenue of $892.01 million. Net sales for Power Transmission Solutions segment rose 179 percent to $175 million in the quarter, while Commercial and Industrial Systems segment sales gained 1 percent to $456 million. Climate Solutions segment net sales dropped 2 percent to $280 million in the first quarter. Its adjusted operating profit margin widened 40 basis points to 9.8 percent in the quarter. "Regal had a strong start to the year with first quarter 2015 sales up 14% and adjusted earnings up 16% compared to the prior year. In spite of headwinds from the weakness in oil and gas, the SEER 13 pre-build and softness in the China markets, we delivered organic growth of 1%," said Regal Chairman and CEO Mark Gliebe. Mr. Gliebe added, "As we progress through the year, we expect continued headwinds from foreign currency translation, upstream oil and gas markets and the SEER 13 pre-build." For the full year, Regal Beloit now projects earnings of $5.45 to $5.75 per share. Regal Beloit shares closed at $77.72 on Friday.