Friday, RBC Bearings Inc. (ROLL), reported a decline in its profit for the third quarter, with a 20.9% decline revenues hurt by lower sales in all its business segments and a decrease in gross margin.
The Oxford, Connecticut-based company's third quarter net income was $5.2 million or $0.24 per share, down from $7.7 million or $0.35 per share in the prior year quarter.
Results for the quarter includes the after-tax start-up costs associated with the expansion into new bearing products, restructuring and moving costs, disposal of fixed assets, the CDSOA payment and foreign exchange gain or loss on intercompany loans.
Excluding these items, net income declined 37.5% to $5.6 million or $0.26 per share from $9.0 million or $0.41 per share in the comparable quarter last year.
On an average, seven analysts polled by Thomson Reuters expected the company to earn $0.28 per share for the quarter. Analysts' estimates typically exclude one-time items.
Third quarter net sales fell 20.9% to $67.5 million from $85.3 million in the year-ago period. Revenue decreased mainly due to a drop of 16.6% in net sales from industrial business and a 23.8% decrease in net sales from aerospace and defense business. Analysts expected revenue of $66.99 million for the third quarter.
Gross margin dropped to 30.3% from 33.4% in the prior year quarter mainly driven by the current economic downturn combined with start-up costs associated with the company's expansion into new bearing products. On a non-GAAP basis, gross margin dropped to 31.2% from 34.4% in the prior year quarter.
Operating income was $8.1 million, down from $12.8 million and interest expense decreased to $0.3 million from $0.7 million in the same quarter last year. On a non-GAAP basis, operating income declined to $8.9 million from $14.5 million in the year ago quarter.
For the nine-month period, the company reported net income of $14.7 million or $0.68 per share compared to $27.9 million or $1.29 per share in the prior year period. Adjusted net income declined to $16.2 million or $0.75 per share from $30.9 million or $1.42 per share last year. Revenue for the year dropped to $194.8 million from $271.9 million in the prior year.
Analysts expected earnings of $1.11 per share on revenue of $269.33 million for the full year.
ROLL is currently trading at $22.38, down $0.10 or 0.44%, on the Nasdaq.
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