Q3 sales rise at RBC

Industrial Distribution staff -- Industrial Distribution, 2/8/2007 7:11:00 AM

RBC Bearings announced a nearly 14 percent rise in third-quarter sales, citing increased demand in many of its end markets. RBC makes engineered precision plain, roller and ball bearings for the industrial, defense and aerospace industries.

Sales rose 13.6 percent to $76.5 million in the third quarter, ended Dec. 30, 2006.

RBC’s earnings rose 60 percent, to $8.2 million from $5.1 million in the third quarter of 2005.

The company cited strong sales and improved gross margin, noting that third-quarter gross margin rose 20.5 percent to $24.5 million, compared to $20.4 million in the same period in 2005.

Dr. Michael J. Hartnett, RBC’s chairman and CEO, said in a statement, “During the third quarter, our business performed very well and showed significant improvements in gross margin, operating income, net income and free cash flow. We are pleased with the progress in these areas, which is the result of many years of effort to improve our manufacturing operations, expand our product offering, and improve our market penetration. I believe that today the company is showing excellent momentum in all these areas as we enter our last fiscal quarter.”

The company completed the consolidation of its Nice Bearings business in December with the sale of its Kulpsville, Pa., facility.

In addition, RBC began the consolidation of its tapered bearings manufacturing business this January. The company will stop manufacturing tapered bearings in its Glasgow, Ky., facility and consolidate the remaining manufacturing into other facilities. The move is expected to improve gross margins on that product line in the next 12 months.

Get the latest news from INDUSTRIAL DISTRIBUTION delivered straight to your desktop. Click here to sign up for RSS feeds of the latest breaking news, exclusive features and blogs from INDUSTRIAL DISTRIBUTION.