Baldor Electric Co.’s net income for the second quarter rose 192 percent over the same quarter last year, the company said in a news release after the stock markets closed Thursday.
The Fort Smith-based maker of generators and industrial electric motors reported net income of $22.77 million, or 48 cents per share, for the quarter that ended June 30, compared with net income of $7.8 million, or 17 cents per share, a year ago.
The company beat the average earnings estimate of 44 cents per share from 11 analysts surveyed by Thompson Reuters.
Net sales rose 14 percent to $439.49 million, up from $384.68 million in the second quarter of 2009.
The company is expected to hold a conference call with analysts at 10 a.m. today to discuss its secondquarter results.
Chairman and Chief Executive John McFarland said in a news release that, compared with the same quarter last year, incoming ordersincreased each month of the quarter, with May having the biggest increase.
“July’s incoming orders have continued to grow at a double-digit rate,” he said. “We currently have a backlog of approximately $200 million, up from $135 million at year end. As a result, we expect sales growth in third-quarter 2010 of 16 percent to 18 percent compared to third-quarter 2009.”
Eric Glover, an analyst with Canaccord Genuity in SanFrancisco, wrote in a note to investors earlier this month that he anticipates a positive outlook for Baldor in the third quarter, “based on continued order momentum; the mandated transition to premium efficient motors [occurring this December]; and more favorable raw material costs due to declines in steel, copper and cast iron prices.”
Baldor’s shares rose 69 cents, or 1.78 percent, to $39.35 on Thursday on the New York Stock Exchange. Its stock has traded between $24.67 and $41.51 in the past year.
To contact this reporter:
Business, Pages 21 on 07/30/2010