Precision bearings and components maker RBC Bearings reported its 2020 fourth quarter financial results on Wednesday for the period ended March 28, in which the COVID-19 pandemic only impacted the tail end.
The Oxford, CT-based company posted Q4 sales of $185.8 million, up 2.0 percent year-over-year (YoY), with organic sales up 0.6 percent. Total sales in RBC’s aerospace markets increased 4.3 percent, while sales to industrial markets declined 1.9 percent overall and 5.6 percent organically. Adjusted gross margin of 41.3 percent improved 120 basis points YoY, adjusted operating profit percentage of 23.1 percent increased 50 points and total profit of $33.8 million edged up from $32.9 million a year earlier.
For the full year, RBC Bearings’ posted total 2020 sales of $727.5 million, up 3.6 percent over 2019. Adjusted gross margin of 39.8 percent improved 40 basis points, adjusted operating profit percentage of 21.6 percent improved 30 basis points and total profit of $126.0 million improved over 2019’s $119.7 million.
“In the fourth quarter of fiscal 2020, we did not experience significant disruptions in our supply chain or with our customers as a result of COVID-19,” the company said in its Q4 earnings report. “We anticipate that our production and sales in fiscal 2021 will be negatively affected by the economic implications of the pandemic. Commercial aerospace OEM and aftermarket, which make up approximately half of our sales annually, will be impacted by the decline in air travel and changes in production rates. Our sales to defense markets, which represent approximately one quarter of total sales, will grow over the next year. Our sales to industrial markets will be adversely affected in the first two quarters of fiscal 2021 due to the slowdown of economic activity.”