Maker of High Speed Bearings for industrial and military use RBC Bearings Inc. (ROLL: News ) Wednesday reported a sharp decline in first quarter profit, as downturn in the global economy dampened demand, resulting a 31% decline in quarterly sales.
For the first quarter, net income declined 52.6% to $5.07 million or $0.23 per share from $10.68 million or $0.49 per share in the same quarter a year ago. Excluding adjustments, net income was down 52.4% at $5.3 million, compared to $11.2 million in the prior-year quarter. On a per share basis, adjusted earnings were $0.25 compared to $0.51 last year.
On average, three analysts polled by Thomson Reuters expected earnings of $0.30 per share for the quarter. Analysts' estimate typically excludes one-time items.
Net sales dropped 31% to $63.73 million from $92.38 million in the prior year quarter, missing Street estimates of $71.72 million. The company attributed the decline in sales mainly to a 46.3% drop in industrial sales, amid economic declines.
Sales from Needle Roller bearings segment dropped to $15.57 million from $24.96 million in the year-ago quarter. Plan bearing segment revenues declined to $31 million from $43.72 million in the prior-year quarter. Ball bearing segment were down at $12.24 million, compared to $15.05 million in the year-earlier quarter.
Michael Hartnett, chief executive officer said, "During the period we, like other companies serving our industries, experienced a decline in demand from many of our primary markets attributed to the current broad economic conditions."
Operating income of Stainless Steel Bearings was $7.78 million, down 54.4% from $17.05 million in the same quarter last year. As a percentage of net sales, operating profit was 12.2% compared to 18.5% for the same period last year.
ROLL is currently trading at $22.53, down $1.62 or 6.71%, on the Nasdaq.