Earnings Roundup: Regal Beloit Corp., MSA and EnPro Industries
Industrial Distribution staff -- Industrial Distribution, 5/1/2008 8:02:00 AM
Three manufacturers, Regal Beloit Corp., Mine Safety Appliances and EnPro Industries, posted first-quarter sales and earnings figures.Regal Beloit Corp.
First-quarter sales for the Beloit, Wis.-based motion control and power generation products manufacturer rose 28.1 percent to $536.3 million, compared with $418.7 million during the same period last year.
Regal Beloit posted quarterly net income of $32.2 million, up 20 percent compared with $26.8 million during the first quarter of 2007.
The company said four acquisitions it made last year— Alstom's India-based motors and fans business, Morrill Motors, motors and blower systems maker Jakel Inc. and the Fasco divisions of Tecumseh Products Co.—contributed a total of $111.9 million in sales.
And its $27.6 million acquisition April 24 of Chinese industrial motor manufacturer Wuxi Hwada Motor Co. is expected to add up to $80.0 million in sales this year, REgal Beloit said.
“Given the difficult residential markets and raw material cost environments, we are quite pleased with our results for the first quarter. New products, continuous improvement in execution, and our geographic diversification are driving solid results,” chairman and CEO Henry Knueppel said. “While we remain cautious due to the unprecedented inflation in raw materials and, to a lesser degree, the speculation regarding the strength of end markets, we are confident in our ability to deliver solid results.”
MSA
Mine Safety Appliances (MSA) posted first-quarter sales of $266.3 million, up 17.9 percent compared with $225.9 million during the same period last year.
The Pittsburgh-based safety products manufacturer’s net income stayed flat, dipping by 0.3 percent to $16 million, compared with $16.1 million during the first quarter of 2007.
MSA said the income slip was primarily due to a $2.4 million decline in its European segment’s net income on higher selling and research and development expenses and a one-time income tax charge of $400,000.
President and COO William Lambert said the sales increase followed depressed sales to the North American fire service market during the end of fiscal 2007 due to delayed federal funding to fire departments and the transition to new self-contained breathing apparatus (SCBA) standards, which went in to effect in August of last year.
“The increase in our first quarter SCBA orders indicates that we have worked through this transition period,” Lambert said. “I am also pleased with the progress that we continue to make in expanding our market reach and growing sales in our International segment and with the recent strength in our incoming orders in Europe. … During the first quarter, we continued to make good progress on our Project Magellan initiative to improve the efficiency of our North American manufacturing operations and with our transformation to a more fully global company. I believe we will continue to see significant progress on these initiatives throughout the remainder of the year.”
EnPro Industries
First-quarter sales for the Charlotte-based seals, wound bearings, compressor systems and engines manufacturer rose 14.5 percent to $283.1 million, compared with $247.3 million during the same period last year.
Quarterly net income of $13.2 million was up 7.3 percent compared with $12.3 million during the first quarter of 2007.
EnPro said the sales increase reflects a 9 percent contribution from acquisitions, including Sinflex Sealing Technologies and Compressor Products International, organic growth and strong international markets.
“The company expects current market conditions to continue through the first half of the year and into the second half. These conditions, combined with EnPro's geographic expansion and contributions from acquisitions completed during 2007 and the first quarter of 2008, should lead to increased sales, improved profits and strong cash flows,” EnPro said in a statement.
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