Regal Rexnord recorded a quarterly loss after a goodwill impairment linked mainly to its autonomous mobile robotics business. Management is considering a sale of that operation. Revenue and adjusted earnings increased, while the company raised its adjusted annual earnings forecast and lowered the forecast prepared under standard accounting rules.
Industrial equipment maker Regal Rexnord reported higher third-quarter revenue than a year earlier.[1], [2]
Sales reached 1,588 million dollars, an increase of 6 per cent. The net result moved from profit of 80 million dollars to a loss of 12 million dollars. A goodwill impairment of 119 million dollars related mainly to autonomous mobile robotics. Management is evaluating options including a sale of that business as part of its portfolio review.[1]
Automation and motion control sales increased 24.5 per cent to 500.6 million dollars. Industrial powertrain solutions sales declined 1.9 per cent to 649.5 million dollars, while power efficiency solutions grew 1.2 per cent to 437.9 million dollars. Orders outside data centres increased 13 per cent. Commercial heating, ventilation and air conditioning orders grew 47 per cent, and discrete automation orders rose 26 per cent.[1]
Adjusted earnings before interest, taxes, depreciation and amortisation rose 4 per cent to 351 million dollars from 339 million dollars. The total excluding tariff refunds was 337 million dollars. Regal Rexnord raised its annual adjusted earnings per share forecast to 10.60–10.90 dollars, while lowering the standard accounting forecast to 3.76–4.06 dollars. The forecasts apply different expense definitions. Net debt was 2.9 times the adjusted earnings measure.[1]
