Baldor Electric 8-K Other Events

Exhibit 99.1

	Historical										Pro Forma
	Year Ended						Nine Months Ended				Year Ended December 31, 2005			Nine Months Ended September 30, 2006
(Dollars in thousands, except per share data)	January 3, 2004		January 1, 2005		December 31, 2005		October 1, 2005		September 30, 2006
Statement of Earnings Data:
Net sales	$	561,391	$	648,195	$	721,569	$	538,907	$	610,826	$	1,603,719		$	1,356,728
Cost of goods sold		413,953		479,664		527,502		399,414		450,175		1,202,504			997,088
Gross profit		147,438		168,531		194,067		139,493		160,651		401,215			359,640
Selling and administrative		107,120		114,906		124,668		90,377		99,956		250,718			203,294
Operating profit		40,318		53,625		69,399		49,116		60,695		150,497			156,346
Other income, net		1,960		1,938		1,976		1,349		835		2,212			2,411
Interest expense		2,949		3,235		4,080		2,954		4,562		130,435			97,886
Earnings before income taxes		39,329		52,328		67,295		47,511		56,968		22,274			60,871
Income taxes		14,550		17,276		24,274		17,617		21,022		8,124			22,169
Net earnings	$	24,779	$	35,052	$	43,021	$	29,894	$	35,946	$	14,150		$	38,702
Preferred stock dividends		—		—		—		—		—		(10,688	)		(8,016	)
Net earnings available to common shareholders	$	24,779	$	35,052	$	43,021	$	29,894	$	35,946	$	3,462		$	30,686
Earnings Per Share Data:
Net earnings per share—basic	$	0.75	$	1.06	$	1.30	$	0.90	$	1.10	$	0.08		$	0.76
Net earnings per share—diluted	$	0.74	$	1.05	$	1.28	$	0.89	$	1.09	$	0.08		$	0.75
Weighted average shares outstanding—basic		32,928,369		32,953,382		33,170,241		33,185,585		32,589,502		40,999,521			40,418,782
Weighted average shares outstanding—diluted		33,404,733		33,485,261		33,727,946		33,762,071		32,988,590		41,557,226			40,817,870
Dividends declared and paid per common share	$	0.53	$	0.57	$	0.62	$	0.46	$	0.50	$	0.62		$	0.50
Balance Sheet Data (at period end):
Cash and cash equivalents	$	10,635	$	12,054	$	11,474	$	16,544	$	15,535				$	15,535
Total current assets		276,293		299,085		296,456		310,084		324,298					655,684
Total assets		478,355		502,900		506,441		515,718		535,298					2,886,844
Current liabilities		104,491		85,940		107,501		91,733		117,293					208,941
Total debt		105,284		104,025		95,025		99,418		105,025					1,560,025
Total liabilities		216,867		219,285		206,986		219,907		231,268					2,197,897
Total shareholders’ equity		261,488		283,615		299,455		295,811		304,030					688,947
Other Financial Information:
Net cash provided by operating activities	$	65,007	$	33,696	$	55,873	$	37,792	$	40,180
Net cash used in investing activities		32,835		16,764		23,712		13,522		5,908
Net cash used in financing activities		46,052		15,513		32,741		19,780		30,211
Depreciation and amortization		18,839		19,143		18,241		13,541		14,567		83,825			61,262
Additions to property, plant and equipment		17,368		20,612		22,375		15,595		14,351
EBITDA (1)		61,117		74,706		89,616		64,006		76,097		236,534			220,019
Ratio of earnings to fixed charges (2)		10.6		13.2		14.5		14.1		11.9

(1) We present EBITDA in this prospectus supplement to provide investors with a supplemental measure of our operating performance. EBITDA, as used in this prospectus supplement, is defined as net earnings plus consolidated net interest expense, income taxes and depreciation and amortization. We use EBITDA as one criterion for evaluating our performance relative to that of our peers. EBITDA is also used by investors to evaluate our operating performance. In addition, it provides investors and analysts with a measure of operating results unaffected by differences in capital structure, capital investment cycles and ages of related assets.

EBITDA is not a recognized measurement under U.S. Generally Accepted Accounting Principles (“GAAP”). When evaluating our operating performance or liquidity, investors should not consider EBITDA in isolation of, or as a substitute for, measures of our financial performance and liquidity as determined in accordance with GAAP, such as net earnings, operating income or net cash provided by operating activities. EBITDA may have material limitations as a performance measure because it excludes items that are necessary elements of our costs and operations, including our cash used for capital expenditures, working capital and to make payments of interest or principal on our indebtedness. Because other companies may calculate EBITDA differently than we do, EBITDA may not be comparable to similarly titled measures reported by other companies.

The following table reconciles historical and pro forma net earnings to EBITDA:

	Historical										Pro Forma
	Year Ended						Nine Months Ended				Year Ended December 31, 2005		Nine Months Ended September 30, 2006
(in thousands)	January 3, 2004		January 1, 2005		December 31, 2005		October 1, 2005		September 30, 2006
Net earnings	$	24,779	$	35,052	$	43,021	$	29,894	$	35,946	$	14,150	$	38,702
Income taxes		14,550		17,276		24,274		17,617		21,022		8,124		22,169
Interest expense		2,949		3,235		4,080		2,954		4,562		130,435		97,886
Depreciation and amortization		18,839		19,143		18,241		13,541		14,567		83,825		61,262
EBITDA	$	61,117	$	74,706	$	89,616	$	64,006	$	76,097	$	236,534	$	220,019

(2) Earnings is the sum of income before taxes from continuing operations and fixed charges. Fixed charges consists of interest expense on indebtedness and an approximation of interest included in rental expense.