Baldor Electric Company 1st Quarter 2001 Results

Apr 16, 2001, 01:00 ET from Baldor Electric Company

    FORT SMITH, Ark., April 16 /PRNewswire/ -- Baldor Electric Company
 (NYSE:   BEZ) markets, designs, and manufactures electric motors and drives and
 is based in Fort Smith, Arkansas.  Today Baldor made the following
 announcement regarding sales and earnings for the first quarter of 2001.
     In commenting on the quarterly results, John McFarland, President and
 Chief Executive Officer, stated, "During the first quarter we saw a broad
 based decline in orders resulting in a 5% drop in sales.  Earnings per share
 declined to $0.21 from a first quarter record of $0.35 the previous year.
 Operating margins were hurt by this drop in orders and restructuring in
 Europe."
 
 
                                              1st Quarter
      (all data in thousands except         2001       2000
      for per share information)              13 weeks ended       %
                                        Mar 31 2001 Apr 1 2000   Change
      Net Sales *                        $150,155    $158,019     -5%
      Cost of Sales                       107,545     107,060
      Gross Profit                         42,610      50,959    -16%
      SG&A                                 28,296      28,135
      Operating Profit                     14,314      22,824    -37%
      Other Income (Expense)               (1,384)       (749)
      Profit Sharing                        1,554       2,524
      Earnings Before Income Taxes         11,376      19,551    -42%
      Income Taxes                          4,209       7,331
      Net Earnings                       $  7,167    $ 12,220    -41%
 
      Earnings Per Share - Diluted          $0.21       $0.35    -40%
      Dividends Per Share                   $0.13       $0.12      8%
 
      Average Shares Outstanding           34,496      35,070     -2%
 
 
                                           Balance Sheet Summary
                                             2001         2000
      Cash & Marketable Securities       $  11,862    $  23,562
      Receivables                           98,808      107,424
      Inventories                          120,815      107,018
      Working Capital                      178,648      172,828
      Long-Term Debt                        98,201       62,305
      Shareholders' Equity                 263,516      247,483
      Cash Flow from Operations              4,232        8,235
 
     * Prior year net sales has been restated to comply with revised accounting
       standards to reflect the reclassification of gross freight costs.  This
       change has no effect on current or historical net earnings or earnings
       per share.
 
     McFarland also commented, "Our near-term expectations continue to be
 guarded; however, new product introductions and margin improvement initiatives
 cause us to view the second half of the year with optimism."
     During the quarter Baldor introduced approximately 500 new stock products.
 These new products include commercial motors in fractional horsepower sizes,
 an expanded line of Super-E(R) premium efficient motors, larger explosion
 proof motors commonly used in the oil and gas industry, and portable
 generators from Pow'r Gard Generator Corporation acquired last November.
 Baldor believes these new products will increasingly benefit the Company's
 sales through the balance of the year.
     During March 2001 Baldor completed several previously announced
 initiatives that the Company expects to help profitability.  The consolidation
 of Baldor's two European plants into a single plant in Bristol, England, has
 now been completed.  Baldor also completed the expansion of its plant in
 Ozark, Arkansas, and the relocation of a product line to that facility from
 the Company's plant in Columbus, Mississippi.  Baldor believes the completion
 of these efforts will improve the performance of these three plants during the
 balance of the year.
     A modest price increase was implemented on March 12, 2001.  This price
 increase is Baldor's first in five years.  The price increase will offset
 increases the Company has seen in material cost.
     Baldor's recent lead-time improvement from three weeks to two weeks gives
 the Company a competitive advantage and also allows Baldor to improve product
 availability for customers at lower inventory levels.
     Baldor continues to be optimistic about the opportunities the Company has
 as a result of recent increases in electricity costs and the uncertainty of
 supply in some cases.  Electric motors consume over 60% of the electricity
 used by industry in the United States.  Using Baldor high efficiency motors
 and drives can help industrial consumers lower their electricity costs.  In
 some applications, electric motor users can save as much as half of the
 electricity consumed by using Baldor Super-E motors and variable speed drives.
     Baldor's annual shareholders' meeting will be held at 10:30 am (local
 time) on Saturday, April 28, 2001, in Breedlove Auditorium on the campus of
 Westark College in Fort Smith, Arkansas.  During Baldor's presentation, the
 Company will comment further on efforts to improve sales and profitability.
 Baldor also will provide additional information on the advantages of using
 Baldor high efficiency motors and drives to lower electricity cost.  Baldor /
 Pow'r Gard generator products also will be on display.
     This document contains statements that are forward-looking, i.e. not
 historical facts.  The forward-looking statements (generally identified by
 words or phrases indicating a projection or future expectation such as
 "outlook", "optimistic", "trends", "expect(s)", "assuming", "expectations",
 "forecasted", "estimates", "expected") are based on the Company's current
 expectations and some of them are subject to risks and uncertainties, possibly
 including changes in economic conditions, competition, fluctuations in raw
 materials and other unanticipated events and conditions, the outcome of which
 could result in actual future performance being materially different from the
 performance indicated.  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
    FORT SMITH, Ark., April 16 /PRNewswire/ -- Baldor Electric Company
 (NYSE:   BEZ) markets, designs, and manufactures electric motors and drives and
 is based in Fort Smith, Arkansas.  Today Baldor made the following
 announcement regarding sales and earnings for the first quarter of 2001.
     In commenting on the quarterly results, John McFarland, President and
 Chief Executive Officer, stated, "During the first quarter we saw a broad
 based decline in orders resulting in a 5% drop in sales.  Earnings per share
 declined to $0.21 from a first quarter record of $0.35 the previous year.
 Operating margins were hurt by this drop in orders and restructuring in
 Europe."
 
 
                                              1st Quarter
      (all data in thousands except         2001       2000
      for per share information)              13 weeks ended       %
                                        Mar 31 2001 Apr 1 2000   Change
      Net Sales *                        $150,155    $158,019     -5%
      Cost of Sales                       107,545     107,060
      Gross Profit                         42,610      50,959    -16%
      SG&A                                 28,296      28,135
      Operating Profit                     14,314      22,824    -37%
      Other Income (Expense)               (1,384)       (749)
      Profit Sharing                        1,554       2,524
      Earnings Before Income Taxes         11,376      19,551    -42%
      Income Taxes                          4,209       7,331
      Net Earnings                       $  7,167    $ 12,220    -41%
 
      Earnings Per Share - Diluted          $0.21       $0.35    -40%
      Dividends Per Share                   $0.13       $0.12      8%
 
      Average Shares Outstanding           34,496      35,070     -2%
 
 
                                           Balance Sheet Summary
                                             2001         2000
      Cash & Marketable Securities       $  11,862    $  23,562
      Receivables                           98,808      107,424
      Inventories                          120,815      107,018
      Working Capital                      178,648      172,828
      Long-Term Debt                        98,201       62,305
      Shareholders' Equity                 263,516      247,483
      Cash Flow from Operations              4,232        8,235
 
     * Prior year net sales has been restated to comply with revised accounting
       standards to reflect the reclassification of gross freight costs.  This
       change has no effect on current or historical net earnings or earnings
       per share.
 
     McFarland also commented, "Our near-term expectations continue to be
 guarded; however, new product introductions and margin improvement initiatives
 cause us to view the second half of the year with optimism."
     During the quarter Baldor introduced approximately 500 new stock products.
 These new products include commercial motors in fractional horsepower sizes,
 an expanded line of Super-E(R) premium efficient motors, larger explosion
 proof motors commonly used in the oil and gas industry, and portable
 generators from Pow'r Gard Generator Corporation acquired last November.
 Baldor believes these new products will increasingly benefit the Company's
 sales through the balance of the year.
     During March 2001 Baldor completed several previously announced
 initiatives that the Company expects to help profitability.  The consolidation
 of Baldor's two European plants into a single plant in Bristol, England, has
 now been completed.  Baldor also completed the expansion of its plant in
 Ozark, Arkansas, and the relocation of a product line to that facility from
 the Company's plant in Columbus, Mississippi.  Baldor believes the completion
 of these efforts will improve the performance of these three plants during the
 balance of the year.
     A modest price increase was implemented on March 12, 2001.  This price
 increase is Baldor's first in five years.  The price increase will offset
 increases the Company has seen in material cost.
     Baldor's recent lead-time improvement from three weeks to two weeks gives
 the Company a competitive advantage and also allows Baldor to improve product
 availability for customers at lower inventory levels.
     Baldor continues to be optimistic about the opportunities the Company has
 as a result of recent increases in electricity costs and the uncertainty of
 supply in some cases.  Electric motors consume over 60% of the electricity
 used by industry in the United States.  Using Baldor high efficiency motors
 and drives can help industrial consumers lower their electricity costs.  In
 some applications, electric motor users can save as much as half of the
 electricity consumed by using Baldor Super-E motors and variable speed drives.
     Baldor's annual shareholders' meeting will be held at 10:30 am (local
 time) on Saturday, April 28, 2001, in Breedlove Auditorium on the campus of
 Westark College in Fort Smith, Arkansas.  During Baldor's presentation, the
 Company will comment further on efforts to improve sales and profitability.
 Baldor also will provide additional information on the advantages of using
 Baldor high efficiency motors and drives to lower electricity cost.  Baldor /
 Pow'r Gard generator products also will be on display.
     This document contains statements that are forward-looking, i.e. not
 historical facts.  The forward-looking statements (generally identified by
 words or phrases indicating a projection or future expectation such as
 "outlook", "optimistic", "trends", "expect(s)", "assuming", "expectations",
 "forecasted", "estimates", "expected") are based on the Company's current
 expectations and some of them are subject to risks and uncertainties, possibly
 including changes in economic conditions, competition, fluctuations in raw
 materials and other unanticipated events and conditions, the outcome of which
 could result in actual future performance being materially different from the
 performance indicated.  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