BELOIT, Wis., Sept. 23, 2018 /PRNewswire/ -- Regal Beloit Corporation (NYSE: RBC) today announced that Mark J. Gliebe, Chairman and CEO, will retire from Regal after the completion of calendar year 2018. Mr. Gliebe has been with Regal for 14 years and has served as CEO for the last 8 years. Under Mr. Gliebe's leadership, Regal has grown revenue 64%, from $2.2 billion at the end of 2010 to an estimated $3.6 billion in 2018 and has transformed into a global leader in high efficiency motors and power transmission systems. Regal's Board of Directors has begun a process to identify Mr. Gliebe's successor. Mr. Gliebe has agreed to lead the Company until a successor has been named and to resign from the Board effective as of his retirement date as CEO.
"Leading Regal has been the honor of my lifetime and I am incredibly proud of all we have achieved to advance the interests of all our stakeholders," said Mr. Gliebe. "Having served eight years as CEO and four years as COO, it is time for me to move to the next phase of my life. I leave behind an exceptional management team and a company that is in a strong position for continued growth. I am confident that Regal's brightest days are still ahead."
Speaking on behalf of Regal's Board of Directors, Presiding Director Rakesh Sachdev said: "I would like to thank Mark for his outstanding contributions to Regal and wish him the very best in his next chapter. Regal is exceptionally well-positioned to continue its path for growth and value creation for our shareholders, customers, employees and all stakeholders. The Board has immediately begun the process to hire a successor. Until then, Mark will continue in his current role, providing strong leadership."
Concurrent with this announcement, Regal is confirming 2018 adjusted diluted earnings per share* guidance of $5.70 - $6.00. The Company forecasts 2018 GAAP diluted earnings per share of $4.55 to $4.85, which now includes an estimate of currently known and anticipated CEO transition costs of $0.23 per share.
Regal Beloit Corporation (NYSE: RBC) is a leading manufacturer of electric motors, electrical motion controls, power generation and power transmission products serving customers throughout the world. We create a better tomorrow by developing and responsibly producing energy-efficient products and systems.
Our company is comprised of three operating segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. Regal is headquartered in Beloit, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, visit RegalBeloit.com.
*This news release includes a non-GAAP financial measure. A description of why Regal believes this non-GAAP measure is useful and a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure are included with this news release.
The following is a cautionary statement made under the Private Securities Litigation Reform Act of 1995: With the exception of historical facts, the statements contained in this release may be forward-looking statements. Forward-looking statements represent our management's judgment regarding future events. In many cases, you can identify forward-looking statements by terminology such as "may," "will," "expect," "intend," "estimate," "forecast," "anticipate," "believe," "should," "project" or "plan" or the negative of these terms or other similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including but not limited to: uncertainties regarding our ability to execute our restructuring plans within expected costs and timing; increases in our overall debt levels as a result of the acquisition of the Power Transmission Solutions business of Emerson Electric Co. ("PTS") or otherwise and our ability to repay principal and interest on our outstanding debt; actions taken by our competitors and our ability to effectively compete in the increasingly competitive global electric motor, drives and controls, power generation and power transmission industries; our ability to develop new products based on technological innovation and marketplace acceptance of new and existing products; fluctuations in commodity prices and raw material costs; our dependence on significant customers; risks associated with global manufacturing; issues and costs arising from the integration of acquired companies and businesses including PTS and the timing and impact of purchase accounting adjustments; prolonged declines in oil and gas up stream capital spending; economic changes in global markets where we do business, such as reduced demand for the products we sell, currency exchange rates, inflation rates, interest rates, recession, government policies, including policy changes affecting taxation, trade, immigration and the like, and other external factors that we cannot control; product liability and other litigation, or claims by end users, government agencies or others that our products or our customers' applications failed to perform as anticipated, particularly in high volume applications or where such failures are alleged to be the cause of property or casualty claims; unanticipated liabilities of acquired businesses; unanticipated costs or expenses we may incur related to product warranty issues; our dependence on key suppliers and the potential effects of supply disruptions; infringement of our intellectual property by third parties, challenges to our intellectual property, and claims of infringement by us of third party technologies; effects on earnings of any significant impairment of goodwill or intangible assets; losses from failures, breaches, attacks or disclosures involving our information technology infrastructure and data; cyclical downturns affecting the global market for capital goods; and other risks and uncertainties including but not limited to those described in "Item 1A-Risk Factors" of the Company's Annual Report on Form 10-K filed on February 27, 2018 and from time to time in our reports filed with U.S. Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary statements. The forward-looking statements included in this release are made only as of their respective dates, and we undertake no obligation to update these statements to reflect subsequent events or circumstances.
NON-GAAP MEASURES AND OTHER DEFINITIONS
(Dollars in Millions, Except per Share Data)
We prepare financial statements in accordance with accounting principles generally accepted in the United States ("GAAP"). We also periodically disclose certain financial measures in our quarterly earnings releases, on investor conference calls, and in investor presentations and similar events that may be considered "non-GAAP" financial measures. This additional information is not meant to be considered in isolation or as a substitute for our results of operations prepared and presented in accordance with GAAP.
In this news release, we disclose the following non-GAAP financial measure, and we reconcile this measure in the table below to the most directly comparable GAAP financial measure: adjusted diluted earnings per share. We believe that this non-GAAP financial measure is useful for providing investors with additional information regarding our results of operations and for helping investors understand and compare our operating results across accounting periods and compared to our peers. Our management primarily uses adjusted diluted earnings per share to help us evaluate our business and forecast our future results. Accordingly, we believe disclosing and reconciling this measure helps investors evaluate our business in the same manner as management.
2018 ADJUSTED ANNUAL GUIDANCE
2018 Diluted EPS Annual Guidance
Restructuring and Related Costs
Purchase Accounting and Transaction Costs
Gain on Sale of Assets
Impairment and Exit Related Costs
CEO Transition Costs
2018 Adjusted Diluted EPS Annual Guidance
SOURCE Regal Beloit Corporation
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