(Recasts, adds details, analyst comment)
By Bhaswati Mukhopadhyay
BANGALORE, Oct 25 (Reuters) - Baldor Electric Co BEZ.N posted third-quarter earnings, which missed analysts’ estimates by a cent, as sales from drives and generators fell, and forecast fourth-quarter sales to be lower sequentially due to holidays.
The company, which makes industrial electric motors, power transmission products, drives and generators, reported net income of $24.6 million, or 53 cents a share, compared with $12.2 million, or 37 cents a share, a year ago.
Revenue rose 126 percent to $480.6 million.
Analysts on average were expecting the company to earn 54 cents a share, before items, according to Reuters Estimates.
Growth in the domestic market, which contributes about 80 percent of the company’s revenue, slowed a bit from the second quarter due to a weak U.S. economy, Stephen Sanders, an analyst with Stephens Inc, said by phone.
Drives sales, which accounts for 7 percent of revenue, fell 11 percent and generator sales, which forms 3 percent of revenue, were down 6 percent for the quarter.
The Fort Smith, Arkansas-based company, which acquired Reliance Electric Co from Rockwell Automation Inc (ROK.N) in January, said orders and shipments were flat during August.
“The company has significant cost-saving opportunities from the recent acquisition, which they will start to recognize next year,” Sanders said.
The company, which operates primarily in Europe and Asia outside of the United States, said it sees rate of sales growth in the fourth quarter to be slightly higher sequentially.
Baldor Electric, which sells its products to distributors and original equipment manufacturers, competes with companies like Emerson Electric Co (EMR.N) and Rockwell Automation.