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RBC Bearings Inc. (USA; NASDAQ: ROLL reported financial results for both fourth quarter and fiscal year 2006, ended April 1, 2006.
In the quarter, net sales were $75.8 million, up 4.8% from 72.3 million in 2005. RBC credited strength in sales of plain bearings.
Quarterly gross margin rose to 30.8% of sales from 29.1% in 2005.
Net Income in fourth quarter, however, fell to $5.9 million from $6.9 million as RBC paid significantly higher taxes and was impacted by both management compensation costs and $1 million related to the closing of its Nice Bearing plaint in Kulpsville.
Sales for the full year were $274.5 million, up 13% over $243 million in 2005.
Gross margin improved to 30.2% of sales from 28.2% of sales in 2005.
Net income for the year was $12.4 million, or 4.5% of sales, up from $7.3 million in 2005.
CapEx for the year was $10.3 million, against $9.3 million depreciation, from $9.5 million in 2005 against $8.8 million depreciation.
After its recent follow-on stock offering, RBC's debt load stands at $165.7 million. The company has been publicly traded on the NASDAQ since August 2005.
RBC breaks down sales into four segments:
Fiscal Year Sales by Segment
Plain Bearings - 2006 sales reached $115.1 million, from $93.3 million in 2005.
Roller Bearings - 2006 sales were $96.5 million, up from $92.3 million in 2005.
Ball Bearings - 2006 sales were $46.4 million, from $41.9 million in 2005.
Other - Net sales of $16.6 million in 2006, up from $15.6 million in 2005.
RBC's Chairman, President and CEO, Dr. Michael Hartnett, said: "Fiscal 2006 was a year of solid performance for RBC Bearings. Throughout the year, management and employees focused on executing our growth strategy and driving performance improvements through cost discipline, methods improvement, and price and mix management. Specifically, in the fourth quarter, RBC was able to consolidate the operations of our Nice Bearing facility, moving production to other RBC locations, with no material impact on production or our ability to service customers. We believe our dual focus on growth and operational efficiency will continue to serve us well in the year ahead."
Into the coming year, Mr. Hartnett said: "Our key market segments of aerospace, defense, construction, mining and aftermarket remain strong. Although we anticipate a slowdown in the Class 8 truck segment later in the year, this factor will have little impact on overall performance. We expect to see overall gross margin expansion over the next year as a result of continued improvements in manufacturing execution, product volume expansion, and a pricing climate that is generally favorable for our products."
Although no direct comments were made, predicting the Class 8 slowdown would seem to indicate more difficult times ahead for RBC's Tyson facility in Glasgow, Kentucky. RBC acquired Tyson from SKF in 1999.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| KSO50 bearing | 50 | 75 | 100 |
| KS50 bearing | 50 | 75 | 100 |