In the news release, Baldor Electric Company (NYSE: BEZ) Announces 4th Quarter and YTD 2007 Results and Discussion, issued earlier today by Baldor Electric Company over PR Newswire, we are advised by the company that in the last question "When will your next update be?," second sentence, the phone number should read "877-340-7912" rather than "888-340-7912" as originally issued inadvertently.
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Baldor Electric Company Announces 4th Quarter and YTD 2007 Results and Discussion
FORT SMITH, Ark.,
4th Quarter Year-To-Date 2007 2006 2007 2006 (in thousands except Dec 29, Dec 30, Dec 29, Dec 30, per share data) 2007 2006 %Chg 2007 2006 %Chg Net Sales $457,006 $200,454 128% $1,824,911 $811,280 125% Cost of Sales 317,881 147,052 1,280,253 597,227 Gross Profit 139,125 53,402 161% 544,658 214,053 154% SG&A 74,822 33,038 291,918 132,994 Operating Profit 64,303 20,364 216% 252,740 81,059 212% Other Income (expense) 831 (105) 2,611 730 Interest Expense (28,443) (1,508) (108,176) (6,069) Earnings Before Income Taxes 36,691 18,751 96% 147,175 75,720 94% Income Taxes 13,314 6,579 53,073 27,602 Net Earnings $23,377 $12,172 92% $94,102 $48,118 96% Earnings Per Share -- Diluted $0.51 $0.37 38% $2.08 $1.46 42% Dividends Per Share $0.17 $0.17 0% $0.68 $0.67 1% Average Diluted Shares Outstanding 46,283 32,853 45,248 32,954
John McFarland, Chairman and CEO, commented on the Company's results, "We
are pleased to announce sales for 2007 of
"Sales growth for comparable products was over 5% in both the third and
fourth quarters of 2007. During
SELECTED FINANCIAL DATA (preliminary, unaudited) 4th Qtr 3rd Qtr Year-To-Date 2007 2007 2007 2006 Dec 29, Sep 29, Dec 29, Dec 30, (in thousands) 2007 2007 (in thousands) 2007 2006 Cash Flows Cash $37,757 $41,931 from Operations $140,856 $55,638 Trade Depr & Receivables Amortization 71,779 19,744 -- net 276,304 295,025 Capital Expenditures 38,896 26,649 Inventories 309,921 321,077 Dividends 31,184 21,891 Total Assets 2,817,077 2,857,503 Total Debt 1,376,346 1,394,025 Depr & Shareholders' Amortization Equity 812,253 800,583 for purchase accounting 21,447 - Following are answers to questions recently asked by shareholders.
Q ... How was business during the quarter?
Compared to the fourth quarter of 2006 (and including comparable sales for Dodge and Reliance), industrial motor sales (62% of revenue) were up 8%, power transmission product sales (28% of revenue) were up 4%, drives sales (7% of revenue) were down 6% and generator sales (3% of revenue) were flat. Sales to original equipment manufacturers were up 9%, and sales to distributors were up 1%.
For the year (and including comparable sales for Dodge and Reliance), sales of industrial motors were up 10%, power transmission products up 2%, drives down 7% and generators up 5%. Sales to original equipment manufacturers increased 9% while sales to distributors increased 2%.
Q ... Have you seen improvement in your international business?
Sales to customers outside the U.S. increased more than 25% during the
quarter and are up over 10% for the year. During the quarter, there were
strong sales increases in Asia,
Q ... How were operating cash flows during 2007?
Operating cash flows for the quarter were
Q ... What is your debt balance?
At the end of 2007, our total debt balance was
In 2008, our goal is to reduce our debt by at least
Q ... What are your motor production schedules for the first quarter?
Current incoming order rates are good for motors, and finished goods inventories are low. We expect to produce a record number of motors in the first quarter.
Q ... Are you pleased with the 14.1% operating margin you achieved in the fourth quarter?
Yes. Even though fourth quarter sales were
Q ... Have your customers indicated they are concerned about a slowing economy in 2008?
Our customers are optimistic that 2008 will be a good year. The January incoming order rate is 7% ahead of last January (including comparable sales for Dodge and Reliance). However, we do realize there is the risk of a recession. We are prepared to react appropriately should our business slow down.
Q ... What are your capital investment plans for 2008?
In 2008 we expect to increase our capital investments to approximately
Q ... Are industrial electric motors included in the recently enacted Energy Bill?
Yes, the 2007 Energy Bill will have a big impact on our business. This
bill, which becomes effective
While the use of premium-efficient motors is mandated at the end of 2010, a growing number of customers are making the switch today. Our Super-E(R) line of motors grew by 25% during 2007, and we expect that growth rate to continue. In early 2008, we will introduce an energy-efficient line of Dodge gearmotors to further expand our leadership position in energy efficiency.
Q ... When will your next update be?
We will hold a conference call on
We will also make a presentation at the Gabelli 18th Annual Pump, Valve &
Motor Symposium at
Baldor's Annual Shareholders' Meeting will be held at
Forward Looking Statement
This document contains statements that are forward-looking, i.e. not historical facts. The forward-looking statements contained in this document (including "estimate", "believe", "will", "intend", "expect", "may", "could", "future", "susceptible", "unforeseen", "anticipate", "would", "subject to", "depend", "uncertainties", "predict", "can", "expectations", "if", "unpredictable", "unknown", "pending", "assumes", "continued", "ongoing", "assumption" or any grammatical forms of these words or other similar words) are based on the Company's current expectations and some of them are subject to risks and uncertainties. Accordingly, you are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward looking statements as a result of various factors. The factors that might cause such differences include, among others, the following: (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) the success in increasing sales and maintaining or improving the operating margins of the Company, and (v) other factors including those identified in the Company's filings made from time-to-time with the Securities and Exchange Commission. These statements should be read in conjunction with the Company's most recent annual report (as well as the Company's Form 10-K and other reports filed with the Securities and Exchange Commission) containing a discussion of the Company's business and of various factors that may affect it.
SOURCE Baldor Electric Company