Regal Beloit reports overall increased sales despite weakened segments

Freeman Staff

Nov. 9, 2015

BELOIT ó Regal Beloit reported that while its sales increased during the third quarter by 6 percent, its Commercial and Industrial Systems Segment net sales were $427 million, down 10 percent, when compared to the same period last year due to a weakness in oil and gas and a slowdown in industrial markets in China. In contrast its Power Transmission Solutions Segment increased 183 percent, attributable to acquisitions.

The company also reported that despite these challenges, adjusted operating profit margin increased 140 basis points to 9.3 percent, due primarily to the simplification initiative, lower material costs and cost controls. Regal Beloitís total sales were $882 million in the third quarter.

The reported adjusted diluted earnings per share were $1.43 during the third quarter, a 24 percent increase compared to the third quarter of 2014.

The Climate Solutions Segment net sales were $264 million, down 9 percent compared to the third quarter of 2014, but Power Transmission Solutions Segment net sales increased 183 percent to $191 million, driven primarily by acquisition growth of $129 million, partially offset by a negative 1 percent foreign currency translation, according to the release.