Baldor Electric Company 1st Quarter 2000 Results
13 April 2000
Baldor Electric Company 1st Quarter 2000 Results
FORT SMITH, Ark., April 13 Baldor Electric Company
(NYSE: BEZ) markets, designs, and manufactures electric motors and drives and
is based in Fort Smith, Arkansas. Today Baldor announced the results of the
first quarter of 2000.
Baldor achieved record sales, record operating margins, and record
earnings for the first quarter of 2000. Sales of $156 million were up
10% from the year earlier and earnings of $12 million increased 14%.
Operating margins rose to 14.6%. Earnings per share were up 21% to $0.35.
all data in thousands
except for per share data
1st Quarter
2000 1999
13 weeks ended %
Apr 1 2000 Apr 3 1999 Change
Net Sales $ 156,074 $ 142,133 10%
Cost of Sales 107,060 98,494
Gross Profit 49,014 43,639 12%
SG&A 26,190 23,850
Operating Profit 22,824 19,789 15%
Other Income (Expense) (749) (159)
Profit Sharing 2,524 2,321
Earnings Before Income Taxes 19,551 17,309 13%
Income Taxes 7,331 6,577
Net Earnings $ 12,220 $ 10,732 14%
Earnings Per Share - Diluted $0.35 $0.29 21%
Dividends Per Share $0.12 $0.11 9%
Average Shares Outstanding 35,070 37,147 -6%
John McFarland, Baldor's President and CEO, commented, "We are very
pleased to start this new year with strong sales growth producing the highest
quarterly sales ever for the Company. Sales momentum picked up throughout the
quarter with March setting a new monthly sales record. During the quarter
motor product sales were up almost 10% and drive product sales up over 14%.
Specific markets that were strong in the quarter included conveyors, HVAC,
food processing equipment, and semiconductor manufacturing equipment."
Lloyd Davis, Baldor's COO, said, "Our continuing emphasis on improving
productivity in our plants helped us achieve all-time gross margins and
profits. We are also beginning to see the benefits of our new company-wide
information system called BUS (Baldor Unified System)."
Sales of new products were strong in the quarter. In January, Baldor
introduced over 350 new stock products (motors, controls, and gearboxes).
This was the largest number of new products ever introduced at one time.
Baldor's new "commercial" motor line, with ratings from 1/4 to 1 HP, is now
starting production in a new "focused factory" located within one of the
Company's locations in Fort Smith, Arkansas.
In March, Baldor was the first to introduce a new technology grease
developed by Exxon especially for electric motor bearings. This new grease
lasts up to four times longer than some greases used by other motor
manufacturers. This improvement is now standard in all Baldor industrial
motors and is the latest example of Baldor's strategy to design and produce
the world's most reliable industrial motors.
Another important strategy is to make it easy for customers to do business
with Baldor. In late March, Baldor launched Baldor VIP - Valued Internet
Partner, a new Internet option for Baldor customers. With Baldor VIP, Baldor
customers can use the Internet to check inventory availability, place and
follow-up on orders, obtain account information, and get many types of product
information.
R. S. Boreham, Jr., Baldor's Chairman of the Board, reported, "Earnings
per share were up 21% to $0.35 in part due to the stock repurchase plan
authorized by the Board. During the first three months of the year, we
repurchased 1.7 million shares. A total of 3.7 million shares have been
repurchased since September 1998. The Board believes these repurchases are
good investments and build value for shareholders."
Balance Sheet Summary
Apr 1 2000 Apr 3 1999
Cash & Marketable Securities $ 23,562 $ 32,091
Receivables 107,424 92,999
Inventories 107,018 104,994
Working Capital 172,828 171,215
Long-Term Debt 62,305 57,098
Shareholders' Equity 247,483 259,659
Cash Flow from Operations 8,235 11,895
The Company's Annual Shareholders' Meeting will be held at 10:30 am
(local time), on Saturday, April 29, 2000, in Breedlove Auditorium at Westark
College in Fort Smith, Arkansas.
This press release may contain "forward-looking" statements within the
meaning of applicable securities laws. These statements include or imply
projections of future performance that are based upon the Company's
expectations and assumptions. These expectations and assumptions, as well as
the Company's future performance, are subject to a number of risks and
uncertainties which may be inherent by nature and discussed in the Company's
various SEC filings.