Ball bearings maker RBC Bearings Inc (ROLL.O) posted better-than-expected quarterly results helped by lower expenses and higher sales at its industrial business, sending its shares up as much as 9 percent.
The company said it continued to be encouraged by its industrial markets and that the industry-wide outlook for its aerospace and defense products was positive.
RBC sees strong improvement in industrial segments such as large construction equipment, industrial distribution, semiconductor capital equipment, military vehicles, Chief Executive Michael Hartnett said on a conference call with analysts.
The renewed production of Boeing's (BA.N) 787 aircraft and the expansion of the 737 and 8380 volumes, and an improved outlook for business jets were favorable indicators for the next 12-18 months for RBC's aircraft businesses, Hartnett said.
Aerospace and defence represented 51 percent of RBC's fourth -quarter sales, the company said.
For the fourth quarter ended April 3, net income was at $9.7 million, or 44 cents a share, compared with $6.5 million, or 30 cents a share a year ago, RBC Bearings said.
Excluding items, the company earned 37 cents a share.
Net sales fell 5 percent to $79.8 million, but industrial sales rose 30.6 percent, the company said.
Operating expenses fell 28 percent to $13.6 million.
Analysts on average had expected earnings of 34 cents a share, before special items, on a revenue of $76.7 million according to Thomson Reuters I/B/E/S.
Shares of the company were trading up 4 percent at $28.785 in mid day trade Wednesday on Nasdaq.They had earlier touched $30.
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