Regal Beloit Corporation (RBC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $45.60 million, or $ 1.01 a share in the quarter, against a net loss of $19.30 million, or $0.43 a share in the last year period. On an adjusted basis, earnings per share were at $1.04 for the quarter compared with $1.17 in the same period last year.
Revenue during the quarter went down marginally by 1.99 percent to $758.10 million from $773.50 million in the previous year period. Gross margin for the quarter contracted 293 basis points over the previous year period to 25.48 percent. Operating margin for the quarter period stood at positive 9.25 percent as compared to a negative 1.82 percent for the previous year period.
Operating income for the quarter was $70.10 million, compared with an operating loss of $14.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $72.20 million compared to $79.50 million in the prior year period. At the same time, adjusted operating margin contracted 75 basis points in the quarter to 9.52 percent from 10.28 percent in the last year period.
"Our fourth quarter results were in line with our expectations. Organic sales growth turned positive in our Commercial and Industrial Systems and Climate Solutions Segments," said Regal chairman and chief executive officer Mark Gliebe. "We were pleased that we were able to offset the LIFO expense with strong operational performance and cost controls.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $4.35 to $4.75. The company expects diluted earnings per share to be in the range of $4.50 to $4.90 on adjusted basis.
Operating cash flow improves
Regal Beloit Corporation has generated cash of $439.60 million from operating activities during the year, up 15.35 percent or $58.50 million, when compared with the last year. The company has spent $19.60 million cash to meet investing activities during the year as against cash outgo of $1,487.60 million in the last year. It has incurred net capital expenditure of $63.10 million on net basis during the year, down 17.41 percent or $13.30 million from year ago.
The company has spent $376.80 million cash to carry out financing activities during the year as against cash inflow of $1,036.60 million in the last year period.
Cash and cash equivalents stood at $284.50 million as on Dec. 31, 2016, up 12.50 percent or $31.60 million from $252.90 million on Jan. 02, 2016.
Working capital declines
Regal Beloit Corporation has witnessed a decline in the working capital over the last year. It stood at $830.40 million as at Dec. 31, 2016, down 18.78 percent or $192 million from $1,022.40 million on Jan. 02, 2016. Current ratio was at 2.18 as on Dec. 31, 2016, down from 2.67 on Jan. 02, 2016.
Cash conversion cycle (CCC) has decreased to 53 days for the quarter from 63 days for the last year period. Days sales outstanding were almost stable at 27 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 53 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 28 for the same period last year.
Debt comes down
Regal Beloit Corporation has recorded a decline in total debt over the last one year. It stood at $1,411.50 million as on Dec. 31, 2016, down 18.03 percent or $310.40 million from $1,721.90 million on Jan. 02, 2016. Total debt was 32.38 percent of total assets as on Dec. 31, 2016, compared with 37.50 percent on Jan. 02, 2016. Debt to equity ratio was at 0.68 as on Dec. 31, 2016, down from 0.87 as on Jan. 02, 2016.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
