Regal Beloit Organic Sales Drop 14 percent In Q4

Power Transmission sales spiked in Q4 from acquisition growth, but sharp declines in Regal's other two segments resulted in a net loss.

Id 12621 Regal

Electric motor manufacturer Regal Beloit reported its 2015 fourth quarter fiscal results on Monday, which showed a 14 percent decline in organic sales growth compared to the same period in 2014.

Total Q4 sales of $773.5 million were flat compared to last year, with acquisition growth offset by organic sales decline of 14 percent, leading to an overall net loss of $19.3 million. That figure was a substantial improvement from Q4 2014's net loss of $116.5 million.

The Beloit, WI-based company said the organic sales decline was largely attritubable to having five less shipping days in Q4 compared to the same period last year, as well as a negative 2.7 percent impact from currency headwinds.

By business segment in Q4 2015:

  • Commercial and Industrial Systems sales of $371 million were down 18 percent from a year ago. 
  • Climate Solutions sales of $210 million were down 18 percent from a year ago.
  • Power Transmission Solutions sales increased 182 percent from a year ago to $193 million, driven primarily by acquisition growth of $128 million.

For the full year 2015, Regal Beloit total sales of $3.5 billion increased 7.8 percent over 2014, while profit of $143.3 million was up from 2014's profit of $31 million.

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