Baldor Electric Company 3rd Quarter 2000 Results
12 October 2000
Baldor Electric Company 3rd Quarter 2000 Results
FORT SMITH, Ark., Oct. 12 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
third quarter and first nine months of 2000.
Baldor achieved record sales, record earnings, and record earnings per
share for the third quarter and nine months of 2000. Third quarter sales of
$153.1 million increased 6%. Net earnings were $11.5 million, up 4%, and
earnings per share of $0.33 rose 10%.
Nine months sales totaled $470.2 million, up 7%. Net earnings were
$36.2 million, an increase of 10% over the previous year. Earnings per share
of $1.05 increased 18%.
Even though sales, earnings, and earnings per share were the best ever for
any third quarter, margins were flat due to unfavorable currency effects and
freight and energy costs. Also, we have committed substantial resources to
plant consolidation and expansion in Europe and to moving and expanding
production of a product line in the United States. These efforts are going
well and will begin paying off in 2001.
(all data in thousands except for per share data)
3rd Quarter Year (9 Months)
2000 1999 2000 1999
13 weeks ended 39 weeks ended
Sep 30 2000 Oct 2 1999 % Sep 30 2000 Oct 2 1999 %
Change Change
Net Sales $153,114 $144,349 6% $470,158 $438,612 7%
Cost of Sales 106,169 100,111 324,082 304,399
Gross Profit 46,945 44,238 6% 146,076 134,213 9%
SG&A 25,609 24,110 78,854 73,545
Operating Profit 21,336 20,128 6% 67,222 60,668 11%
Other Income
(Expense) (486) (157) (1,519) (793)
Profit Sharing 2,473 2,154 7,719 6,967
Earnings Before
Income Taxes 18,377 17,817 3% 57,984 52,908 10%
Income Taxes 6,892 6,774 21,744 20,105
Net Earnings $11,485 $11,043 4% $36,240 $32,803 10%
Earnings Per Share
- Diluted $0.33 $0.30 10% $1.05 $0.89 18%
Dividends Per
Share $0.13 $0.11 18% $0.37 $0.33 12%
Average Shares
Outstanding 34,335 36,653 -6% 34,635 36,901 -6%
In the coming quarter, we expect to reduce our manufacturing leadtimes to
10 working days from 15 currently. "We believe this is an industry
breakthrough that will help our customers' efforts to secure more business.
We also continue to invest in developing new products and expect to introduce
vertical pump motors, additional commercial motor ratings, stainless
gearboxes, and new servo and motion control drives in the coming months," said
John McFarland, Baldor's President & CEO.
Baldor's Board of Directors recently declared an 8% increase in the
quarterly dividend raising it to $0.13 per share. "This is the seventh
dividend increase in the last five years, and the 13th increase in the last
ten years," said R. S. Boreham, Jr., Baldor's Chairman of the Board. The
company continues with the previously announced share repurchase program.
Through September 30, 2000, Baldor has repurchased over 4.1 million shares
since September 1998.
Balance Sheet Summary
Sep 30 2000 Oct 2 1999
Cash & Marketable Securities $19,282 $36,114
Receivables 110,583 105,997
Inventories 111,726 98,146
Working Capital 173,642 182,934
Long-Term Debt 57,665 56,493
Shareholders' Equity 254,203 266,653
Cash Flow from Operations 33,989 35,314