Thursday, February 03, 2011

Sales Up, Profits Down

That commodity-price squeeze is beginning to hurt.

Sales were up 20%, but Regal Beloit Corp. said fourth-quarter earnings fell 27% amid rising commodities prices.

The maker of electric motors and other equipment said net income fell to $26.1 million, or 65 cents a share, from $35.5 million, or 90 cents, in fourth quarter 2009. Sales rose to $555.7 million from $463.3 million.

There will be similar announcements and they will be from diverse sectors--food processors, food retailers/restaurants, and other manufacturers.

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