Regal Beloit stock takes hit in fourth quarter

Special to The Freeman

Feb. 17, 2015

BELOIT — Regal Beloit Corporation reported Tuesday a fourth quarter 2014 diluted loss per share of $2.61 partly related to changes in the company’s Venezuela operations.

Fourth quarter adjusted diluted earnings per share were $0.82, which included a negative $0.22 per share impact from a charge to accounts receivable related to the company’s Venezuela operations, according to the company.

Other financials reported for Regal Beloit’s fourth quarter included total net sales increasing 7 percent to $776 million , which was contributed to organic growth of 3 percent, acquisition growth of 5 percent and a foreign currency translation decline of 1 percent, when compared to the same period in 2013. Adjusted operating profit margin was relatively flat at 7.8 percent.

“Recent changes in the global environment resulting from rapidly declining oil prices led us to further reduce our exposure in Venezuela, clouding what was otherwise a quarter operationally in line with our guidance,” said Regal Chairman and CEO Mark Gliebe in a statement. “We experienced strong organic growth in key end markets and we started to see benefits from our simplification initiative. At the end of the year, we announced the transformational acquisition of Emerson’s PTS business which will significantly contribute to 2015 earnings. Two weeks ago, we closed on the acquisition and quickly began our integration.”

Gliebe said the company is putting into place a three-year plan that it hopes will help it to achieve its financial targets in 2015, including having adjusted diluted earnings per share to be in the range of $5.45 to $5.85.

Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power transmission and power generation products serving markets throughout the world. The company is headquartered in Beloit and has manufacturing, sales and service facilities throughout the United States, Canada, Mexico, Europe and Asia.

www.regalbeloit.com