Regal Beloit lifts profit outlook for fiscal 3Q

Regal Beloit lifts profit outlook for fiscal 3rd-quarter on lower tax rate, cost cuts

• On 5:47 pm EDT, Thursday October 8, 2009

BELOIT, Wis. (AP) -- Regal Beloit Corp. on Thursday boosted its fiscal third-quarter guidance citing lower taxes and raw material costs, as well as an improved sales mix and cost cuts.

The maker of motion-control and power-generation equipment said it expects it earned 80 cents to 85 cents per share for the three months ended Sept. 26, up from an earlier forecast of 60 cents to 68 cents.

The company said its revenue guidance -- a 25 percent decline -- remains unchanged.

Regal Beloit said the improved earnings estimate was being driven by a lower effective tax rate, lower raw material costs, the sales mix of energy-efficient products and cost reductions.

Regal Beloit plans to release its fiscal third-quarter results on Nov. 2. The company said the release will include more specific information about its quarterly results and its outlook for the fourth quarter.

For now, the company said it expects the fourth quarter to reflect a sequential decrease in sales driven by normal seasonal patterns, a normalized tax rate and less favorable raw material costs.

Shares of Regal Beloit rose 67 cents, or 1.4 percent, to $47.91 in after-hours trading. During the regular session, they climbed $2.07, or 4.6 percent, to close at $47.24.