BELOIT, Wis., March 10, 2017 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) provided an update today on the Company's
enterprise strategy and announced new three-year performance goals.
The strategy is built on the Company's core capabilities
focused on operational strength, the development of innovative
products that solve customer needs, and the Company's unique
culture. The key elements that will underlie the three-year
enterprise strategy will be an enhanced focus on its core
businesses, driving organic growth with innovative products, and
continuing to simplify the Company's footprint and operations.
Through the execution of the enterprise strategy over the next
three years, the Company expects to achieve:
- Organic sales compounded annual growth rate of 2% to 4%
- Adjusted operating margin improvement of 200 to 250 basis
points
- Free cash flow of 100% to 125% percent of net income
- Return on invested capital improvement of 300 to 400 basis
points
Additionally, the Company announced plans to repatriate
approximately $150 million of cash in
2017, which it expects to use for future debt reduction and share
repurchases. The Company also confirmed its guidance for 2017
GAAP diluted earnings per share of $4.35 to
$4.75 and adjusted diluted earnings per share* of
$4.50 to $4.90, reflecting a 6
percent year-over-year increase at the midpoint.
"We are excited to showcase a range of new products that
highlight the high-efficiency motor and power transmission
technologies that have become synonymous with the Regal brand,"
said Regal Chairman and CEO, Mark
Gliebe. "These new products will help solve our customers'
challenges around energy efficiency and help drive growth for Regal
and its shareholders in the years to come."
Regal will host an Investor Day today, March 10, 2017 in New
York City beginning at 8:30 a.m.
EST. The executive management presentations will be
webcast live and all presentation materials will be accessible on
the Company's website at www.regalbeloit.com. An archive of
the webcast will be available until May 9,
2017 at the link referenced above.
Regal Beloit Corporation (NYSE: RBC) is a leading manufacturer
of electric motors, electrical motion controls, power generation
and power transmission products serving markets throughout the
world. The company is comprised of three business segments:
Commercial and Industrial Systems, Climate Solutions and Power
Transmission Solutions. Regal is headquartered in Beloit, Wisconsin, and has manufacturing,
sales and service facilities throughout the United States, Canada, Mexico, Europe and Asia. For more information, visit
RegalBeloit.com.
CAUTIONARY STATEMENT
The following is a cautionary statement made under the Private
Securities Litigation Reform Act of 1995: With the exception of
historical facts, the statements contained in this release may be
forward-looking statements. Forward-looking statements
represent our management's judgment regarding future events.
In many cases, you can identify forward-looking statements by
terminology such as "may," "will," "plan," "expect," "anticipate,"
"estimate," "believe," or "continue" or the negative of these terms
or other similar words. Actual results and events could
differ materially and adversely from those contained in the
forward-looking statements due to a number of factors, including:
uncertainties regarding our ability to execute our restructuring
plans within expected costs and timing; increases in our overall
debt levels as a result of the acquisition of the Power
Transmission Solutions ("PTS") business from Emerson Electric Co.,
or otherwise and our ability to repay principal and interest on our
outstanding debt; actions taken by our competitors and our ability
to effectively compete in the increasingly competitive global
electric motor, power generation and mechanical motion control
industries; our ability to develop new products based on
technological innovation and the marketplace acceptance of new and
existing products; fluctuations in commodity prices and raw
material costs; our dependence on significant customers; issues and
costs arising from the integration of acquired companies and
businesses such as PTS, including the timing and impact of purchase
accounting adjustments; prolonged declines in oil and gas up stream
capital spending; economic changes in global markets where we do
business, such as reduced demand for the products we sell, currency
exchange rates, inflation rates, interest rates, recession,
government policies, including policy changes affecting taxation,
trade, immigration and the like, and other external factors that we
cannot control; product liability and other litigation, or claims
by end users, government agencies, or others that our products or
our customers' applications failed to perform as anticipated,
particularly in high volume applications or where such failures are
alleged to be the cause of property or casualty claims;
unanticipated liabilities of acquired businesses; unanticipated
costs or expenses we may incur related to product warranty issues;
our dependence on key suppliers and the potential effects of supply
disruptions; infringement of our intellectual property by third
parties, challenges to our intellectual property, and claims of
infringement by us of third party technologies; effect on earnings
of any significant impairment of goodwill or intangible assets;
cyclical downturns affecting the global market for capital goods;
difficulties associated with managing foreign operations; and other
risks and uncertainties including but not limited to those
described in Item 1A-Risk Factors of the Company's Annual Report on
Form 10-K filed on March 1, 2017 and
from time to time in our reports filed with U.S. Securities and
Exchange Commission. All subsequent written and oral
forward-looking statements attributable to us or to persons acting
on our behalf are expressly qualified in their entirety by the
applicable cautionary statements. The forward-looking
statements included in this release are made only as of their
respective dates, and we undertake no obligation to update these
statements to reflect subsequent events or circumstances.
NON-GAAP MEASURES AND OTHER DEFINITIONS
We prepare financial statements in accordance with accounting
principles generally accepted in the
United States ("GAAP"). We also periodically disclose
certain financial measures in our quarterly earnings releases, on
investor conference calls, and in investor presentations and
similar events that may be considered "non-GAAP" financial
measures. We believe that these non-GAAP financial measures are
useful measures for providing investors with additional information
regarding our results of operations and for helping investors
understand and compare our operating results across accounting
periods and compared to our peers. In addition, since our
management often uses these non-GAAP financial measures to manage
and evaluate our business, make operating decisions, and forecast
our future results, we believe disclosing these measures helps
investors evaluate our business in the same manner as management.
This additional information is not meant to be considered in
isolation or as a substitute for our results of operations prepared
and presented in accordance with GAAP.
In this release, we disclose the following non-GAAP financial
measures, and we reconcile these measures in the tables below to
the most directly comparable GAAP financial measures: adjusted
diluted earnings per share.
In addition to these non-GAAP measures, we also use the term
"organic sales" to refer to GAAP sales from existing operations
excluding sales from acquired businesses recorded prior to the
first anniversary of the acquisition less the amount of sales
attributable to any divested businesses ("acquisition sales"), and
the impact of foreign currency translation. The impact of foreign
currency translation is determined by translating the respective
period's sales (excluding acquisition sales) using the same
currency exchange rates that were in effect during the prior year
periods. We use the term "organic sales growth" to refer to the
increase in our sales between periods that is attributable to
organic sales.
RECONCILIATION OF
2017 ADJUSTED ANNUAL GUIDANCE
|
|
Minimum
|
|
Maximum
|
2017 Diluted EPS
Annual Guidance
|
|
$
4.35
|
|
$
4.75
|
Restructuring and
Related Costs
|
|
0.15
|
|
0.15
|
Gains on Disposals of
Businesses
|
|
—
|
|
—
|
2017 Adjusted Diluted
EPS Annual Guidance
|
|
$
4.50
|
|
$
4.90
|
*This earnings release includes non-GAAP financial
measures. Descriptions of why we believe these non-GAAP
measures are useful and reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP measures are included
with this earnings release.
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SOURCE Regal Beloit Corporation