Thursday, Baldor Electric Co. (BEZ), reported a decline in profit for the second quarter, reflecting a 24% decline in sales due to lower business in both industrial motors and mechanical power transmission products segments.
Net income for the second quarter declined 73% to $7.79 million or $0.17 per share from $29.37 million or $0.63 per share in the previous year.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 24% to $384.68 million from $503.97 million a year ago. Sales of industrial motors during the quarter were $248 million, down 24%, while sales of mechanical power transmission products declined 20% to $115 million.
Seven analysts had a consensus revenue estimate of $386.78 million for the company.
During the second quarter. operating margin improved to 11.5% from 11.2% in first quarter 2009.
For the six-month period, net income declined 20% to $44.21 million or $0.48 per share from $55.01 million or $1.19 per share in the same period of the previous year. Net sales for the period declined 19% to $787.21 million from $974.50 million a year ago.
Looking forward, the company anticipates third quarter sales to be down about 20% from the current levels. The company increased its 2009 cost savings target to $92 million from $80 million, and expects $35 million overtime savings, $33.5 million payroll savings and $23.5 million of savings in discretionary spending.
BEZ closed Thursday's regular trading at $27.60, down 0.09 or 0.33% on a volume of 763K shares on the NYSE.
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