Regal Beloit Corporation (RBC) has reported 11.30 percent rise in profit for the quarter ended Apr. 01, 2017. The company has earned $46.30 million, or $1.02 a share in the quarter, compared with $41.60 million, or $0.93 a share for the same period last year. On an adjusted basis, earnings per share were at $1.07 for the quarter compared with $0.95 in the same period last year.

Revenue during the quarter went down marginally by 0.57 percent to $813.50 million from $818.20 million in the previous year period. Gross margin for the quarter contracted 7 basis points over the previous year period to 26.50 percent. Total expenses were 90.81 percent of quarterly revenues, down from 91.53 percent for the same period last year. This has led to an improvement of 73 basis points in operating margin to 9.19 percent.

Operating income for the quarter was $74.80 million, compared with $69.30 million in the previous year period.

However, the adjusted operating income for the quarter stood at $77.80 million compared to $70.70 million in the prior year period. At the same time, adjusted operating margin improved 92 basis points in the quarter to 9.56 percent from 8.64 percent in the last year period.

"Our first quarter results were slightly ahead of our expectations and represented our fifth consecutive quarter of improving organic sales growth rates," said Regal chairman and chief executive officer Mark Gliebe. "Strong growth in residential HVAC and most Asian end markets helped offset the lingering weakness in energy."

For financial year 2017, the company projects diluted earnings per share to be in the range of $4.40 to $4.80. The company projects diluted earnings per share to be in the range of $4.55 to $4.95 on adjusted basis.

The company has spent $15.50 million cash to meet investing activities during the quarter as against cash outgo of $16.60 million in the last year period.

The company has spent $60.30 million cash to carry out financing activities during the quarter as against cash outgo of $47 million in the last year period.

Cash and cash equivalents stood at $262.30 million as on Apr. 01, 2017, up 5.30 percent or $13.20 million from $249.10 million on Apr. 02, 2016.

Working capital declines
Regal Beloit Corporation has witnessed a decline in the working capital over the last year. It stood at $901.40 million as at Apr. 01, 2017, down 15.57 percent or $166.20 million from $1,067.60 million on Apr. 02, 2016. Current ratio was at 2.26 as on Apr. 01, 2017, down from 2.83 on Apr. 02, 2016.

Cash conversion cycle (CCC) has decreased to 51 days for the quarter from 118 days for the last year period. Days sales outstanding were almost stable at 54 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 52 days for the quarter compared with 116 days for the previous year period. At the same time, days payable outstanding went up to 56 days for the quarter from 51 for the same period last year.