BELOIT, Wis., Sept. 23, 2018 /PRNewswire/ -- Regal Beloit
Corporation (NYSE: RBC) today announced that Mark J. Gliebe, Chairman and CEO, will retire
from Regal after the completion of calendar year 2018. Mr. Gliebe
has been with Regal for 14 years and has served as CEO for the last
8 years. Under Mr. Gliebe's leadership, Regal has grown revenue
64%, from $2.2 billion at the end of
2010 to an estimated $3.6 billion in
2018 and has transformed into a global leader in high efficiency
motors and power transmission systems. Regal's Board of Directors
has begun a process to identify Mr. Gliebe's successor. Mr. Gliebe
has agreed to lead the Company until a successor has been named and
to resign from the Board effective as of his retirement date as
CEO.
"Leading Regal has been the honor of my lifetime and I am
incredibly proud of all we have achieved to advance the interests
of all our stakeholders," said Mr. Gliebe. "Having served eight
years as CEO and four years as COO, it is time for me to move to
the next phase of my life. I leave behind an exceptional management
team and a company that is in a strong position for continued
growth. I am confident that Regal's brightest days are still
ahead."
Speaking on behalf of Regal's Board of Directors, Presiding
Director Rakesh Sachdev said: "I
would like to thank Mark for his outstanding contributions to Regal
and wish him the very best in his next chapter. Regal is
exceptionally well-positioned to continue its path for growth and
value creation for our shareholders, customers, employees and all
stakeholders. The Board has immediately begun the process to hire a
successor. Until then, Mark will continue in his current role,
providing strong leadership."
Concurrent with this announcement, Regal is confirming 2018
adjusted diluted earnings per share* guidance of $5.70 - $6.00. The
Company forecasts 2018 GAAP diluted earnings per share of
$4.55 to $4.85, which now includes an estimate of
currently known and anticipated CEO transition costs of
$0.23 per share.
Regal Beloit Corporation (NYSE: RBC) is a leading manufacturer
of electric motors, electrical motion controls, power generation
and power transmission products serving customers throughout the
world. We create a better tomorrow by developing and responsibly
producing energy-efficient products and systems.
Our company is comprised of three operating segments: Commercial
and Industrial Systems, Climate Solutions and Power Transmission
Solutions. Regal is headquartered in Beloit, Wisconsin and has manufacturing, sales
and service facilities worldwide. For more information, visit
RegalBeloit.com.
*This news release includes a non-GAAP financial measure. A
description of why Regal believes this non-GAAP measure is useful
and a reconciliation of this non-GAAP financial measure to the most
directly comparable GAAP measure are included with this news
release.
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," "expect," "intend," "estimate," "forecast,"
"anticipate," "believe," "should," "project" or "plan" or the
negative of these terms or other similar words. 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, including but not limited to:
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 business of Emerson Electric Co. ("PTS") 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, drives and controls, power generation and power
transmission industries; our ability to develop new products based
on technological innovation and marketplace acceptance of new and
existing products; fluctuations in commodity prices and raw
material costs; our dependence on significant customers; risks
associated with global manufacturing; issues and costs arising from
the integration of acquired companies and businesses including PTS
and 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; effects on earnings of any significant
impairment of goodwill or intangible assets; losses from failures,
breaches, attacks or disclosures involving our information
technology infrastructure and data; cyclical downturns affecting
the global market for capital goods; 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 February 27, 2018 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
Unaudited
(Dollars in Millions, Except per Share Data)
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. 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 news release, we disclose the following non-GAAP
financial measure, and we reconcile this measure in the table below
to the most directly comparable GAAP financial measure: adjusted
diluted earnings per share. We believe that this non-GAAP financial
measure is useful 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. Our management
primarily uses adjusted diluted earnings per share to help us
evaluate our business and forecast our future results. Accordingly,
we believe disclosing and reconciling this measure helps investors
evaluate our business in the same manner as management.
2018 ADJUSTED
ANNUAL GUIDANCE
|
|
Minimum
|
|
Maximum
|
2018 Diluted EPS
Annual Guidance
|
|
$
|
4.55
|
|
|
$
|
4.85
|
|
Restructuring and
Related Costs
|
|
0.14
|
|
|
0.14
|
|
Purchase Accounting
and Transaction Costs
|
|
0.11
|
|
|
0.11
|
|
Gain on Sale of
Assets
|
|
(0.01)
|
|
|
(0.01)
|
|
Impairment and Exit
Related Costs
|
|
0.68
|
|
|
0.68
|
|
CEO Transition
Costs
|
|
0.23
|
|
|
0.23
|
|
2018 Adjusted Diluted
EPS Annual Guidance
|
|
$
|
5.70
|
|
|
$
|
6.00
|
|
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SOURCE Regal Beloit Corporation