Baldor Electric Co. (BEZ) Thursday reported a significant decline in profit for the third quarter, reflecting lower motor and mechanical power transmission sales and higher interest expense.
Net income for the third quarter declined to $12.59 million or $0.27 per share from $25.81 million or $0.55 per share in the previous year. On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 25% to $380.45 million from $506.15 million last year, yet topped analysts' revenue estimate of $403.54 million.
Compared to third quarter 2008, motor sales of $241 million were down 27% and mechanical power transmission sales of $111 million were down 21%. Sales to OEMs declined 29% while sales to distributors declined 21%.
SG&A expenses were $66.1 million, compared to $85.0 million a year back. Other expense for the quarter was $0.04 million, compared to other income of $1.19 million a year ago. Interest expenses for the quarter increased to $29.80 million from $24.46 million in the previous year.
The company reported about $1.5 million of plant consolidation expense during the quarter. In addition, the company completed a real estate transaction which resulted in a gain of about $3.7 million.
Year-to-date, net income declined 30% to $56.81 million or $0.75 per share from $80.82 million or $1.74 per share in the previous year. Net sales for the period declined 21% to $1.17 billion from $1.48 billion a year ago.
Looking forward, the company expects fourth quarter 2009 sales to be down about 20-25% from one year ago. Analysts currently estimate revenues of $401.60 million for the next quarter.
BEZ closed Thursday's regular trading at $27.05, down 0.07 or 0.26%, on a volume of 1.01 million shares on the NYSE. In after hours, the stock further declined 1.04 or 3.84%, trading at $26.01.
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