Baldor Electric Company Announces 2nd Quarter 2000 Results
17 July 2000
Baldor Electric Company Announces 2nd Quarter 2000 Results
FORT SMITH, Ark. - Baldor Electric Company markets, designs, and
manufactures electric motors and drives and is based in Fort Smith, Arkansas.
Today Baldor announced the results of the second quarter and first six months
of 2000.
Baldor achieved record sales, earnings, and earnings per share for the
second quarter and first six months of 2000. Second quarter sales of
$161 million, up 6%, were the highest of any quarter in the Company's history.
Six-month sales of $317 million, up 8%, were also a new record.
Second quarter net earnings of $12.5 million, up 14%, and earnings per
share of $0.36, up 20%, both set new records. "We are pleased to again
leverage our sales increase to an even higher increase in earnings," commented
Lloyd Davis, the Company's Executive Vice President and Chief Operating
Officer.
John McFarland, Baldor's President and CEO, commented, "We are again
pleased to set new sales and earnings records. Strong sales growth was
achieved in motion control and linear motors, our most recent acquisitions."
(all data in thousands except for per share data)
2nd Quarter Year (6 Months)
2000 1999 2000 1999
13 weeks ended % 26 weeks ended %
Jul 1 Jul 3 Change Jul 1 Jul 3 Change
2000 1999 2000 1999
Net Sales $160,970 $152,130 6% $317,044 $294,263 8%
Cost of Sales 110,853 105,794 217,913 204,288
Gross Profit 50,117 46,336 8% 99,131 89,975 10%
SG&A 27,054 25,585 53,244 49,435
Operating Profit 23,063 20,751 11% 45,887 40,540 13%
Other Income
(Expense) (284) (475) (1,034) (635)
Profit Sharing 2,722 2,492 5,246 4,813
Earnings Before
Income Taxes 20,057 17,784 13% 39,607 35,092 13%
Income Taxes 7,522 6,754 14,852 13,331
Net Earnings $12,535 $11,030 14% $24,755 $21,761 14%
Earnings Per Share
- Diluted $0.36 $0.30 20% $0.71 $0.59 20%
Dividends Per Share $0.12 $0.11 9% $0.24 $0.22 9%
Average Shares
Outstanding 34,508 36,952 -7% 34,785 37,042 -6%
"Another highlight in the quarter," continued McFarland, "was the launch
of Baldor VIP (Valued Internet Partner), our latest Internet tool exclusively
for Baldor customers. We have received many compliments from customers who
have used Baldor VIP." With Baldor VIP, customers can use the Internet to
check inventory availability, place and follow-up on orders, obtain account
information, and access many types of product information.
During the quarter, Baldor began construction of an 80,000 sq.ft.
expansion of the motor manufacturing plant in Ozark, Arkansas. This plant
produces AC motors from 20 to 200 hp. Primary markets for these products
include HVAC, pumps, and food processing.
Baldor also opened a new 47,000 sq. ft. sales, design, and manufacturing
center in Bristol, England. The new facility is more than double the size of
the previous Bristol operations. "This new facility reflects our enthusiasm
for future growth opportunities available worldwide to Baldor in the servo and
motion control markets," added John McFarland.
"These plant expansions also support two of our growth strategies. First,
they raise our capacity in large AC motors. Second, the drives business
increases our market potential worldwide," commented Rollie Boreham, Baldor's
Chairman of the Board.
Balance Sheet Summary
Jul 1 2000 Jul 3 1999
Cash & Marketable Securities $16,943 $32,532
Receivables 111,138 101,582
Inventories 111,450 101,229
Working Capital 179,132 178,197
Long-Term Debt 65,665 56,493
Shareholders' Equity 250,885 265,269
Cash Flow from Operations 11,077 19,940
