FORT SMITH, Ark., Feb. 4 /PRNewswire-FirstCall/ -- Baldor Electric
Company (NYSE:BEZ) markets, designs and manufactures industrial
electric motors, mechanical power transmission products, drives and
generators. Today, Baldor announced unaudited results for fourth
quarter 2009. John McFarland, Chairman and CEO, commented on the
Company's results, "Sales for 2009 were $1.52 billion, net earnings
were $59.8 million, and diluted earnings per share were $1.28.
Record cash flows from operations of $214.1 million allowed us to
reduce our debt balance by $120.8 million during the year. "In
fourth quarter 2009, we had sales of $356.4 million. Sales were
down by 25% in part because 2008 had one additional week. Net
income of $3.0 million was affected by a $3.0 million tax expense
related to a foreign subsidiary dividend we chose to take. This
unusual tax expense, not expected to be recurring, reduced net
earnings of $0.13 per diluted share by $0.07 per diluted share.
Operating margin for fourth quarter improved to 11.1% from 10.8%
one year ago on $118 million less sales." (Photo:
http://www.newscom.com/cgi-bin/prnh/20100204/DA49858) McFarland
added, "Incoming order rates have begun to show improvement. As a
result, we expect first quarter 2010 sales to be in a range of $380
- $400 million with continued margin improvement on a
year-over-year basis. For the full year of 2010, we expect a slight
sales increase." 4th Quarter Year-To-Date (in thousands 2009 2008
2009 2008 except per ---- ---- % ---- ---- % share data) Jan 2, Jan
3, Chg Jan 2, Jan 3, Chg 2010 2009 2010 2009 ---- ---- ---- ----
Net sales $356,413 $474,022 (25%) $1,524,072 $1,954,679 (22%) Cost
of sales 254,054 339,049 1,081,418 1,376,381 ------- -------
--------- --------- Gross profit 102,359 134,973 (24%) 442,654
578,298 (23%) SG&A 62,883 83,712 265,044 329,701 ------ ------
------- ------- Operating profit 39,476 51,261 (23%) 177,610
248,597 (29%) Other income (expense), net (1,044) 3,316 2,300 6,113
Gain on debt modification - - 35,740 - Debt discount amortization
(2,484) - (7,452) - Interest expense (26,429) (26,762) (107,084)
(102,441) ------- ------- -------- -------- Income before income
taxes 9,519 27,815 (66%) 101,114 152,269 (34%) Income taxes 6,531
9,214 41,318 52,846 ----- ----- ------ ------ Net income $2,988
$18,601 (84%) $59,796 $99,423 (40%) ====== ======= ======= =======
Net earnings per share - diluted (excluding income taxes on a
foreign subsidiary dividend) (1) $0.13 $0.40 (68%) Income taxes on
foreign subsidiary dividend (0.07) - ----- --- Net earnings per
share - diluted $0.06 $0.40 (85%) $1.28 $2.15 (40%) ===== =====
===== ===== Dividends per share $0.17 $0.17 0% $0.68 $0.68 0% Avg
shares outstanding - diluted 47,033 46,266 46,816 46,339 Q... How
was business during the quarter? Sales by Product ----------------
Net Sales Q4 2009 % of Net Sales % of % Chg Net Total % Chg Q4 2009
Total 2009 v (in thousands) Sales Sales 09 v Q4 08 Net Sales Sales
2008 ----- ----- ---------- --------- ----- ---- Motors $221,000
62% (30%) $976,000 64% (23%) Power Transmission 106,000 30% (19%)
445,000 29% (20%) Other 29,000 8% 11% 103,000 7% (14%)
International Sales 61,500 17% (29%) 270,700 18% (20%)
------------- ------ --- --- ------- --- --- Sales to domestic OEMs
declined 30% while sales to domestic distributors declined 14% for
the quarter as compared to fourth quarter 2008. Our customers'
inventories appear to be lean, and we have seen no signs of
restocking. Overall monthly sales improved sequentially throughout
the quarter, and incoming order rates improved. Generator sales
grew by 48% for the quarter as compared to fourth quarter 2008 and
16% for the year as compared to 2008. We expect generator sales to
continue to grow at a double-digit rate during 2010. Sales of
Super-E® motors declined 13% and overall motor sales declined 30%
during the quarter as compared to fourth quarter 2008. Super-E
motors represented 15% of motor sales during the quarter, and we
expect them to comprise approximately 50% of our total motor sales
in 2011 once the 2007 Energy Independence and Security Act takes
effect in December of this year. We believe implementation of this
Act will add $120 to $150 million of motor sales in 2011. Q... How
were international sales? International sales of $61 million
declined 29% compared to fourth quarter 2008. However, the incoming
order rate improved during the fourth quarter, and that trend has
continued into January 2010. Incoming orders exceeded shipments in
almost all regions, and are particularly strong in China. Q... Did
you improve your balance sheet during the quarter? Yes. Compared to
third quarter 2009, collection of our accounts receivable (DSO)
improved by 4 days, inventories declined by $12 million, and
outstanding debt was reduced by approximately $34 million. Selected
Financial Data (unaudited) (in thousands) Q4 2009 Q3 2009 -------
------- Cash $15,270 $14,122 Net receivables 229,174 249,258
Inventories 276,564 288,470 Total outstanding debt 1,205,350
1,239,182 Shareholders' equity 924,084 920,759 2009 2008 ---- ----
YTD cash flows from operations $214,105 $99,122 -------------------
-------- ------- Q... Why did interest expense increase this year
if debt was reduced so much? In March 2009, we renegotiated the
terms of our credit agreement. This eased the restrictions on our
debt, however it resulted in a higher interest rate in 2009 than we
had in 2008. Q... What was the tax charge in the quarter? The $3.0
million, $0.07 per diluted share, tax charge during the fourth
quarter was due to a taxable dividend from one of our foreign
subsidiaries. The dividend allowed us to repatriate funds that were
used to repay debt. This transaction is also part of a long-term
strategy that will enhance our ability to repatriate funds in the
future. Q... What are your expectations for raw material costs
during 2010? We are starting to see increased costs for steel,
copper and cast iron, our largest raw material purchases. While
they won't have an impact on us in the first quarter, we expect
they may lead to a sales price increase in the second quarter. Q...
What is your target for debt reduction in 2010? Our goal is to
reduce debt by a minimum of $75 million during 2010. Since taking
on the $1.55 billion debt three years ago, we have repaid $347
million. Q... What do you expect the tax rate to be in 2010? The
2010 tax rate will be approximately 37%. Q... What will capital
expenditures be during 2010? We plan to invest $35 million in
capital expenditures in 2010 compared to $37 million in 2009. This
investment will allow us to make further investments in new
products as well as plant productivity improvements throughout the
year. Q... What is your outlook for all of 2010? 2009 was a very
difficult year. We believe that during the year we made many
decisions that will benefit us in the long-term. During 2009, we
invested in both new products and new customers, improved
productivity in our plants, and reduced costs by $115 million on an
annual basis. As a result of these investments and an improving
incoming order rate, we expect an increase in sales and earnings in
2010. Q... When is your next public update? A conference call will
be held Friday, February 5, 2010, at 10:00 a.m. central time.
Participants may listen to the discussion through the Company's
website at http://www.baldor.com/ or by calling 1-800-920-4315. A
replay will be available through February 12, 2010, and can be
accessed by calling 1-800-314-3564 (reservation 21455754).
Management will meet with investors and make presentations at the
Gabelli Pump, Valve and Motor Symposium in New York on February 25,
2010 (webcast live) and the BB&T Manufacturing & Materials
Conference in New York on March 24, 2010. (1) Non-GAAP Financial
Measures. Baldor reports its financial results in accordance with
U.S. generally accepted accounting principles ("GAAP"). However,
management believes that certain non-GAAP financial measures
provide financial statement users meaningful comparisons between
current and prior period results. Certain items discussed in this
press release are considered non-GAAP financial measures. Non-GAAP
financial measures should be viewed in addition to, and not as an
alternative for, the Company's reported results. Forward-Looking
Statement This document contains forward-looking statements; in
other words, they are not historical facts. The forward-looking
statements in this document (which might include but are not
limited to "estimate", "think", "intend", "may", "could", "would",
"anticipate", "depend", "predict", "can", "assume", "optimistic",
"will", "continue", "expect", "believe", "should", "forecast") are
based on Baldor's current expectations, and they are subject to
risks and uncertainties. Therefore, please remember that
forward-looking statements are not guarantees of future performance
and they do involve risks and uncertainties. As a result of many
factors, Baldor's actual results could differ materially from those
projected in the forward-looking statements. Some of the factors
that might cause such differences include (i) changes in economic
conditions, (ii) developments or new initiatives by our competitors
in the markets in which we compete, (iii) fluctuations in the costs
of select raw materials, (iv) success in increasing sales and
maintaining or improving the operating margins of Baldor, and (v)
other factors, including those identified in Baldor's filings made
with the Securities and Exchange Commission. Please read these
statements in conjunction with Baldor's most recent Form 10-K and
other reports we have filed with the Securities and Exchange
Commission. These reports contain discussions of Baldor's business
and of various factors that could affect it. BEZ-G
http://www.newscom.com/cgi-bin/prnh/20100204/DA49858 DATASOURCE:
Baldor Electric Company CONTACT: John McFarland, Chairman and CEO,
Ron Tucker, President and COO, or Tracy Long, Vice President
Investor Relations, all of Baldor Electric Company,
+1-479-648-5769, Web Site: http://www.baldor.com/
Copyright
Baldor (NYSE:BEZ)
過去 株価チャート
から 6 2024 まで 7 2024
Baldor (NYSE:BEZ)
過去 株価チャート
から 7 2023 まで 7 2024