BELOIT, Wis., Dec. 1, 2010 /PRNewswire-FirstCall/ -- In advance
of the December 7, 2010 Investors and
Analyst Conference in New York,
Regal Beloit Corporation (NYSE: RBC) today revised its fourth
quarter 2010 guidance to $0.63 -
$0.67 per share. The revision was due to a slower than
expected sales pace in the HVAC segment and acquisition-related
expenses that will be expensed in the quarter.
The company also announced today that it has signed an agreement
to acquire Unico, Inc., headquartered in Franksville, Wisconsin. Unico's sales for the
fiscal year ended June 30, 2010 were
$61.7 million. Unico manufactures a
full range of AC and DC drives, motor controllers, and other
accessories ideally suited for most industrial and commercial
applications. Unico has developed substantial proprietary
technology in the fields of oil and gas recovery technology,
commercial HVAC technology, test stand automation and other
developing applications. The transaction is subject to customary
closing conditions and is expected to close by year end. It
is anticipated that the transaction will be accretive to earnings
per share by approximately 7 cents in
2011.
Knueppel commented, "Unico is one of the most exciting
acquisitions in RBC's history. It is about bringing together a full
electro-mechanical solution for customers. Investors should view
this acquisition as the start of an adjacent platform. Unico has
experienced great organic growth and built a platform for dynamic
future growth. They have an incredibly talented leadership team
that will create the nucleus of this new platform for Regal Beloit.
We believe the marriage of our combined products will drive
development and adoption of new energy efficient and intelligent
solutions. We simply could not be more excited about this
marriage."
Tom Beck, President and CEO of
Unico, commented, "We view Regal Beloit as a great home for the
company we have built. Our companies have been on a similar course
with complementary products and technologies. This marriage
represents opportunities for faster growth and broader solutions.
We too are excited about what the future holds."
Finally, the company announced that Mark
J. Gliebe, currently President and COO, will assume the role
of CEO at the next Annual Shareholders Meeting expected to take
place in May 2011. Mr. Knueppel
will remain as Executive Chairman through the end of 2011 to
complete an orderly transition.
Commenting on the planned succession, Knueppel said, "Regal
Beloit has always been about the future, and this transition fits
firmly in that tradition. As we look to the future, it is a
fantastic feeling to turn over the reins to a person of Mark's
caliber and capability. He is surrounded by a strong leadership
team and is respected by everyone who knows him. Mark has
been a key player in the transformation of the company into a
global diversified industrial company with top tier performance.
Please join me in congratulating Mark on having earned his new
position."
ABOUT REGAL BELOIT CORPORATION:
Regal Beloit Corporation is a leading manufacturer of mechanical
and electrical motion control and power generation products serving
markets throughout the world. Regal Beloit is headquartered
in Beloit, Wisconsin, and has
manufacturing, sales, and service facilities throughout
the United States, Canada, Mexico, Europe and Asia. Regal Beloit's common stock is a
component of the S&P Mid Cap 400 Index and the Russell 2000
Index.
CAUTIONARY STATEMENT
Certain statements made in this press release are
"forward-looking statements" intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
based on management's expectations, beliefs, current assumptions
and projections. When used in this press release, words
such as "may," "will," "expect," "intend," "estimate,"
"anticipate," "believe," "should," "project" or "plan" or the
negative thereof or similar words are intended to identify
forward-looking statements. These forward-looking statements
are not guarantees of future performance and are subject to risks,
uncertainties, assumptions and other factors, some of which are
beyond our control, which could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. Those factors include, but are not limited
to:
- economic changes in global markets where we do business, such
as reduced demand for the products we sell, weakness in the housing
and commercial real estate markets, currency exchange rates,
inflation rates, interest rates, recession, foreign government
policies and other external factors that we cannot control;
- unanticipated fluctuations in commodity prices and raw material
costs;
- cyclical downturns affecting the global market for capital
goods;
- unexpected issues and costs arising from the integration of
acquired companies and businesses;
- marketplace acceptance of new and existing products including
the loss of, or a decline in business from, any significant
customers;
- the impact of capital market transactions that we may
effect;
- the availability and effectiveness of our information
technology systems;
- unanticipated costs associated with litigation matters;
- actions taken by our competitors, including new product
introductions or technological advances, and other events affecting
our industry and competitors;
- difficulties in staffing and managing foreign operations;
- other domestic and international economic and political factors
unrelated to our performance, such as the current substantial
weakness in economic and business conditions and the stock markets
as a whole; and
- other risks and uncertainties described from time to time in
our reports filed with the U.S. Securities and Exchange Commission,
or SEC, which are incorporated by reference.
Shareholders, potential investors, and other readers are urged
to consider these factors in evaluating the forward-looking
statements and cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements included
in this press release are made only as of the date of this press
release, and we undertake no obligation to update these statements
to reflect subsequent events or
circumstances. Additional information regarding these
and other risks and factors is included in Item 1A - Risk
Factors in our Annual Report on Form 10-K filed with the SEC on
March 2, 2010.
SOURCE Regal Beloit Corporation