On November 9, 2023, RBC Bearings Incorporated (RBC, Financial), a prominent international manufacturer of highly engineered precision bearings and components, announced its financial results for the second quarter of fiscal 2024. The company reported a net sales increase of 4.4% to $385.6 million, up from $369.2 million in the same quarter of the previous fiscal year. This growth was primarily driven by a 22.9% increase in the Aerospace/Defense segment, which offset a 2.8% decrease in the Industrial segment.
Financial Performance Highlights
RBC's gross margin improved both in dollar terms and as a percentage of net sales, reaching $166.3 million or 43.1% of net sales, compared to $151.1 million or 40.9% in the prior year. Operating income for the quarter was notably higher at $87.8 million, marking a 21.8% increase from the $72.0 million reported in the second quarter of fiscal 2023. The company's net income also saw a healthy rise, increasing by 17.9% to $51.7 million.
Net income attributable to common stockholders was $45.9 million, a 20.8% increase from the previous year's $38.1 million. Diluted earnings per share (EPS) attributable to common stockholders grew by 20.6% to $1.58, while adjusted diluted EPS was reported at $2.17, up from $1.93 in the second quarter of fiscal 2023.
Operational and Segment Performance
RBC's Aerospace/Defense segment continued to perform strongly, benefiting from robust OEM demand and an improving supply chain. The company's backlog remained solid at $641.3 million as of September 30, 2023, with a slight decrease from $653.2 million as of October 1, 2022.
Selling, general, and administrative (SG&A) expenses increased slightly to $60.5 million, representing 15.7% of net sales. Other operating expenses decreased to $18.0 million, including $17.6 million of amortization of intangible assets and $0.3 million of restructuring costs.
Strategic Acquisitions and Outlook
RBC Bearings also announced the acquisition of Specline, Inc., a precision bearings manufacturer, for $18.7 million, which is expected to bolster its Aerospace/Defense segment. Looking ahead, the company anticipates net sales for the third quarter of fiscal 2024 to be between $370.0 million and $380.0 million, projecting a growth rate of 5.2% to 8.1%.
Dr. Michael J. Hartnett, Chairman and Chief Executive Officer, expressed confidence in the company's trajectory, stating,
We are pleased with our second quarter results, which were in line with our expectations for the period... As we look toward the second half of fiscal 2024, we remain confident that we are on track to deliver record performance."
RBC Bearings will host a webcast to discuss the quarterly results, providing investors with further insights into the company's performance and future prospects.
For detailed financial tables and a reconciliation of GAAP to non-GAAP financial measures, investors are encouraged to review the full earnings release and filings. As always, RBC Bearings remains committed to delivering high-quality products and services to its customers while striving for operational excellence and shareholder value.
For more information and to access the webcast, please visit the investor relations section of RBC Bearings' website at www.rbcbearings.com.
Explore the complete 8-K earnings release (here) from RBC Bearings Inc for further details.
