Regal Beloit Reports Fourth Quarter and Full Year 2011


· Fourth Quarter Results Exceeded Guidance

· 2011 Record Sales of $2.8 Billion

· 2011 Record Net Income of $152.3 Million

· 2011 Free Cash Flow 136% of Net Income*

February 6, 2012 (Beloit, WI): Regal Beloit Corporation (NYSE: RBC) today reported financial results for the fourth quarter and fiscal year ended December 31, 2011. Net sales for the fourth quarter were $727.0 million, a 30.8% increase compared to fourth quarter 2010 net sales of $555.7 million. Adjusted diluted earnings per share for the fourth quarter 2011 were $0.93 compared to $0.65 for the fourth quarter 2010. Net sales for fiscal 2011 were $2,808.3 million, a 25.5% increase compared fiscal 2010 net sales of $2,238.0 million. Adjusted diluted earnings per share for fiscal 2011 were $4.71 compared to $3.84 for fiscal 2010.

"Our performance in the fourth quarter is another indicator that the diversification of our end markets and our ability to be a consistent and successful acquirer allow us to perform well through difficult cycles. A number of our key business units performed well. Revenues in our commercial and industrial motors business, our mechanical businesses and Unico remained strong, offsetting continued weakness in HVAC. The EPC integration remains on track, and the performance of the business helped the Company exceed our guidance for the quarter. EPC is now a key positive contributor to the Company," commented Mr. Mark Gliebe, Chairman and Chief Executive Officer.

Fiscal 2011 results included the following items:

· In connection with the acquisition of the Electrical Products Company of A. O. Smith Corporation ("EPC"), the Company incurred $15.5 million of acquisition related expenses, which were recorded in operating expenses. In addition, in the third and fourth quarters, the Company's results were impacted by inventory purchase accounting adjustments of $10.3 million and $15.5 million, respectively, related to the EPC acquisition, which were recorded in cost of sales.

· In the second quarter, the Company incurred an incremental warranty expense of $28.0 million related to a manufacturing quality problem. In the fourth quarter, the Company reduced the expense by $15.4 million to reflect its revised estimate of future costs. The net $12.6 million expense was recorded in cost of sales.

· In the third quarter, the Company divested its pool and spa motor business resulting in a gain of $6.5 million. The gain was recorded in operating expenses. · In the fourth quarter, the Company recognized $5.8 million of restructuring costs related to facility closures and production line transfers, aimed at improving operational efficiencies at its Australian and European businesses. The expenses were recorded in operating expenses.

Regal Beloit will hold a conference call pertaining to this news release at 9:00 AM CST (10:00 AM EST) on Tuesday, February 7, 2012. To listen to the call and view the presentation slides via the internet, please go www.regalbeloit.com/ or at: www.videonewswire.com/event.asp?id=84548. Individuals who would like to participate by phone should dial 8665243160, referencing Regal Beloit. International callers should dial 4123176760, referencing Regal Beloit.

A telephone replay of the call will be available through May 1, 2012, at 8773447529, conference ID 10008818. International callers should call 4123170088 using the same conference ID. A webcast replay will be available until May 1, 2012, and can be accessed at www.regalbeloit.com/rbceventspresentations.htm or at www.videonewswire.com/event.asp?id=84548

Regal Beloit Corporation is a leading manufacturer of electric motors, mechanical and electrical motion controls and power generation products serving markets throughout the world. Regal Beloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia. Regal Beloit's common stock is a component of the S&P Mid Cap 400 Index and the Russell 2000 Index.

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