Baldor Electric Company Reports Results of 2nd Quarter 1999
20 July 1999
Baldor Electric Company Reports Results of 2nd Quarter 1999
FORT SMITH, Ark., July 19 -- Baldor Electric Company
markets, designs, and manufactures electric motors and drives and
is based in Fort Smith, Arkansas. Today Baldor announced sales and earnings
for second quarter and first six months of 1999.
(in thousands except for per share data)
Second Quarter
13 weeks ended
Jul 3 Jul 4 %
1999 1998 Change
Sales $ 152,130 $ 152,083 0 %
Earnings Before Income Taxes 17,784 18,619 - 4 %
Income Taxes 6,754 7,076 - 5 %
Net Earnings 11,030 11,544 - 4 %
Earnings Per Share - Diluted .30 .30 0 %
Dividends Per Share .11 .10 + 10 %
Average Shares Outstanding 36,952 38,583 - 4 %
Year
26 weeks ended
Jul 3 Jul 4 %
1999 1998 Change
Sales $ 294,263 $ 306,292 - 4 %
Earnings Before Income Taxes 35,092 37,299 - 6 %
Income Taxes 13,331 14,174 - 6 %
Net Earnings 21,761 23,125 - 6 %
Earnings Per Share - Diluted .59 .61 - 3 %
Dividends Per Share .22 .20 + 10 %
Average Shares Outstanding 37,042 38,166 - 3 %
Balance Sheet Information
(in thousands)
Cash & Marketable Securities $ 32,532 $ 14,724
Receivables 101,582 98,061
Inventories 101,229 105,018
Working Capital 178,186 157,784
Long-Term Debt 56,493 33,104
Shareholders' Equity 265,258 262,437
Cash Flow from Operations (six months) 19,900 10,200
Baldor is pleased to report record sales for the second quarter of 1999.
While sales exceeded last year's comparable quarter by only a few thousand
dollars, last year's second quarter was itself a record quarter (the Company's
26th record quarter in a row). Sales have been improving in the last several
quarters with 1999 second quarter sales increasing 7% over 1999 first quarter
sales and 12% over 1998 fourth quarter sales.
Despite being down 4% from second quarter 1998, second quarter 1999 net
earnings were up 3% from first quarter 1999. Operating margins remain
relatively level as the Company continues efforts to improve profitability by
reducing costs and improving productivity. These efforts have helped improve
the quality of products and services Baldor delivers to the Company's
customers.
On July 5, 1999, the Company went "live" with the new Baldor Unified
System (BUS). With an investment of over $7 million and two years of hard
work by the BUS team, BUS brings the Company's five information systems into
one unified system. By allowing Baldor employees, sales people, and customers
access to additional information, the BUS single source will considerably
improve productivity. BUS will enable the Company to stay ahead of the
industry by further reducing lead times which will benefit Baldor's customers.
Baldor's balance sheet remains strong. The Company's healthy cash flows,
coupled with Baldor's solid balance sheet, allowed the Company to continue
stock repurchases. Over 1.3 million shares have been repurchased since the
program was authorized mid-September 1998.
Several of the industries the Company serve such as energy and
semi-conductor equipment, are showing good improvements from the slump of the
last 12 months. This helps the Company to be more optimistic about this year
and next.
For more information contact: Baldor Electric Company
P O Box 2400
R. S. Boreham, Jr. (Chairman) Fort Smith, Arkansas 72902-2400
R. L. Qualls (Vice Chairman) 501-646-4711
John A. McFarland (President) http://www.baldor.com