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RBC Bearings Inc. (USA, NASDAQ: ROLL) reported operating results for fiscal first quarter 2006, ended July 2, 2005 -- prior to the company's IPO.
In the quarter, RBC reported sales were USD $66.0 million, up 17.4% over 2005's $56.2 million.
Net income, at $3.3 million or 5% of sales, reversed 2005's first quarter loss of $3.8 million.
Chairman, President and CEO, Michael Hartnett, said: "We are very pleased to report strong performance in our first earnings report since completing our initial public offering in August. Our company delivered excellent financial results, with strength across all sectors, especially aerospace and defense, propelling us to double digit revenue and earnings growth."
In its earnings call, management mentioned a number of factors contributing to the strong showing. Aerospace and defense market sales were up more than 29% over 2005, while mix, pricing, and manufacturing efficiencies drove gross margins from 27.2% to 29.2% of sales.
RBC divides its operations into four segments, which together encompass all of the company's diverse bearing manufacturing businesses: Industrial Tectonics, RBC Linear, RBC Nice, Bremen Bearings, Miller Bearings, Tyson Bearings, Schaublin, RBC de Mexico, RBC Oklahoma, RBC Aircraft Products, Transport Dynamics, Heim, Engineered Components, and US Bearings.
Roller bearings
Sales reached $24.4 million, up from $22.0 million in 2005.
Plain bearings
Segment sales were $26.4 million in first quarter, from $21.5 million in 2005.
Ball bearings
Sales were $10.6 million in first quarter, up from $9.1 million in 2005.
Other and Corporate
Sales were $4.5 million, from $3.6 million in first quarter 2005.
Inventory, a regularly cited weak spot for RBC, grew again in the quarter, from $95.6 million at the beginning of the quarter, to $99.3 million at the end of first quarter. At $99.3 million, it allows for only 2.6 turns at the current run rate. All three inventory components -- Raw materials, Work in Process, and Finished Goods -- were up.
Looking forward, Dr. Hartnett noted that 2006 stands to be good to RBC: "2006 is shaping up to be a very good year for RBC Bearings. Trends in our diverse end markets remain promising, customer relationships continue to expand and our people are more energized than ever after the initial product offering."
For 2006, RBC forecasts second quarter sales seasonally lower than first quarter, but with aerospace and defense continuing to be particularly strong, coming in at $62 to $65 million, and operating income in the range of $4.6 to $5.0 million. Capex, $2.6 million in the most recent quarter, is scheduled to reach approximately $12 million for the year.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| PCCJ35 bearing | 35 | 118 | 31.7 |
| PCCJ30 bearing | 30 | 108 | 29.7 |