Regal Beloit Q4 Profit Tops Estimates; Organic Sales Up 4.9%; To Combine With Rexnord's PMC Segment

(RTTNews) - Regal Beloit Corp. (RBC) reported fourth quarter adjusted earnings per share of $1.78 compared to $1.25, a year ago. On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $1.59, for the quarter. Analysts' estimates typically exclude special items.

Fourth quarter total net sales were $780.5 million, up 5.7% from prior year. Excluding the positive impacts of 0.8% from foreign currency, sales increased 4.9% on an organic basis. Analysts expected revenue of $739.46 million, for the quarter.

For the first quarter of 2021, the company projects: mid-single digit sales growth, and adjusted EPS in a range of $1.55 to $1.75, which at the mid-point implies 26% growth from prior year.

Separately, Regal Beloit Corporation and Rexnord (RXN) have reached a definitive agreement under which Rexnord will separate its Process & Motion Control segment by way of a tax-free spin-off to Rexnord shareholders and then immediately combine it with Regal in a Reverse Morris Trust deal. Regal shareholders will own 61.4% and Rexnord shareholders will own 38.6% of the combined entity. The transaction values Process & Motion Control segment at $3.69 billion. Regal shareholders would be expected to receive a dividend of approximately $7 per share. The transaction is expected to be accretive to cash EPS in year one after closing.