Regal Beloit Corp. today capped a record year by reporting fourth quarter net income of $24.0 million, or 71 cents per share, which was up slightly from $23.0 million, or 68 cents per share, in the same period a year ago.
The company's quarterly net sales grew to $474.7 million from $366.6 million a year earlier.
Increased sales of the company's electrical equipment and generators helped the firm offset a decline in its HVAC equipment sales, which were dampened by the icy real estate market.
For the full year, Regal Beloit's net sales increased 11.3 percent to a record $1.8 billion from $1.6 billion in 2006. Full year 2007 sales included $129.7 million in sales from acquired businesses.
The company's board of directors also authorized the purchase of an additional 1 million shares of the firm's common stock in open market transactions. Combined with a previous authorization, the company may purchase up to 2.2 million of its shares.
"The fourth quarter proved to be especially challenging. The combination of a weaker-than-expected fourth quarter residential HVAC market, the expected materials cost gap, and essentially no bottom line help from our new acquisitions, due to purchase accounting, held back the margin and bottom line improvements that took place in our business. Given these events, we are pleased with how our businesses performed. While we believe these restraining events are temporary, the core improvements that are taking place across the company and the synergies that are being mined from our new acquisitions are permanent in nature, and we expect that they will continue to create value," said Henry Knueppel, chairman and chief executive officer of Regal Beloit.
Regal Beloit posts record year
Operand type clash: text is incompatible with int
advertisement
Sorry, the story you tried to comment on is not accepting comments.