RBC - Earnings call 2 2024 | RBC Bearings Incorporated

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Operator

Greetings, and welcome to the RBC Bearings Fiscal 2024 Second Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Josh Carroll with Investor Relations. Please go ahead.

Joshua Carroll

Good morning, and thank you for joining us for RBC Bearings Fiscal 2024 Second Quarter Earnings Conference Call. With me on the call today are Dr. and Chief Officer; Sullivan, Operating and Financial President Vice Bergeron, Vice Chairman, Chief and President Officer; Officer. Hartnett, Chief Daniel Executive Director, President Michael and Robert

of with the impact refer for RBC me operating you are projected greater recent filings and under the or release the factors from a could to Actual detailed detail more the Reform that results These to you press let results of in and the before SEC Litigation discussion made also call, condition. Bearings variety Securities implied a We of today's future described on made today are due in beginning that website. Before of and those the risks some Act the financial company's company's Private may statements looking materially remind factors. XXXX. differ

non-GAAP reconciliation to Dr. the of is release between and GAAP addition, Hartnett. I In now information that, and part as over is to the the call website. With would on included available financial company's turn like

Mike Hartnett

increase and Thank represents morning, fiscal to to pleased XXXX I'm quarter net and $XXX.X the that good our were million, you, everyone. report sales X.X% of year. welcome a for Josh, from and last second this

of quarter products our sales XX%. products XXXX, and second the represented For aerospace industrial our XX% of

the margin in is this most acquisition we products and improvement absorption on lines. Clearly, thereby our performance. $XXX.X improving the the a was been or XX.X% been As coupled achievements million a a quarter last derived last price footnote, This from same XXX over or rate margin the compares The basis period year, revenue net improvement growth from compounded volumes sales. from at has are for synergy $XXX.X XX.X%. past tremendously RBC has XX.X% with point pleased rates, our Dodge years, plants, for at overall to aerospace increased with X expansion of of Gross million gross year.

profitability, operating expect the and the plan year that all customer good making and Again, XX.X% margins are Our million, care net to this period teams is the RBC in many We to sales to debt XX.X%, we performance. low range. success. Adjusted continues the progress in compared our finish of excellence cornerstone $XX.X year's priority. $XX gross and to well understand mid-XX% ahead million, for of for to was reduction income with thanks flow respectively, cash improvement. XX.X% of $XX.X was last the be a million Free a

the aircraft, net the in range. our sales and year-end look finishing to March billion the last was proud see of We of are the continual leaders industry have forward net achieved since acquisition marine a over the November business compared X are X.XX EBITDA 'XX. $X.XX a We've XX.X% a have we fiscal Dodge now was XXXX, of from Adjusted billion share, debt in XX from in products A and months excited record revenues debt-to-EBITDA $X.X industries. $XXX now our adjusted XX in ago. over XX.X% stands growth increase. Overall, robust for XX.X% between demand $XXX.X of net made XX.X%. and improvements million, of to million, trailing years the a down from the million $X.XX space EBITDA months, execution decrease year. ratio RBC's of of EPS in X.XX to of acceleration achieved last at $XXX.X We with sales

now industrial and points X.X% up The customers, defense classic side The sector helicopters, sales drivers Dodge in were be pretty was helicopters We increasing the and in X.X% and main and QX X.X% Aftermarket At to with up during quarterly. in jets, valves, time, for aircraft in here, satellites The drivers of on during same at had course, -- strongly of rate. a subcontractors business. industrial support XX.X%. and Defense, month ships. measure. RBC industry. Currently, industrial are, jets, up last marine very of orders, and the plane chain, aerospace few year-to-date support percentage building jet private for down the who late Also a creating industrial aerospace impact improved components supply classic were strong The little the revenues XX course, XX.X% up ship against large us Boeing -- to volumes bulge chain market a defense Airbus that year. chain the was up this the comps our was some is businesses, ships engines. a the assemblies XX.X%. expect revenues. many On supply the of overall rockets. and the growth aerospace production and On we OEM builders overall. performance this builders includes all XXX the per Commercial in missiles, here OEM demand is their period. which supply quarter, to accelerating the negative and on were was Aerospace allowed

ship to moving a and orders per inbound to month are at New $XX RBC month rate per about a XX soon. rate

X rate us. numbers On by build April. the substantial pursuing XXX approximately exit a on Airbus moving ships -- XXXX. has they at current month as XX our of to is per impact the rate the X month order ships per per XXX month This about build are to and rate

sole generates XX% source from primary As today, is products sales these of approximately its RBC of positions. source or typical

trust customers highlight summary, In Our let's go the over us. reel.

net mid-XXs. products up Debt billion since EBITDA consumed $X.XX year margin period. XX.X% revenues and For today QX, paydown guidance, are half expected Trailing is to Full X.X% EBITDA to over the of is sales XXXX use. net low are up and replace in to million, X.XX, is be $XXX million, November that revenue debt in to the our up is adjusted were to million, Gross billion. $X.X $XXX.X income, $XX.X XX.X%, for

million range. I'll now expecting million Regarding be between for turn our third we $XXX over meeting $XXX CFO, for the our on the XXXX, Rob Sullivan, are quarter somewhere to and details financials. sales some to

Robert Sullivan

compared quarter the fiscal same was 'XX to second Mike. year. million for $XX.X of you, SG&A last period million for Thank $XX.X the

of percentage Other of the expenses same compared million SG&A $XX.X for 'XX to was year. of fiscal for period million a second same period compared year. last totaled net XX.X% the the last second quarter $XX As for XX.X% operating 'XX sales, for fiscal quarter to the

amortization of other of For of costs expenses and fiscal the XXXX, second assets, items. million million included intangible of million $X.X $XX.X quarter of $X.X restructuring operating other

$X.X to Dodge million acquisition other associated costs million fiscal of the for items. Operating of $XX of income the and same million the quarter primarily was of expenses in second XXXX, $XX.X amortization for with other income of operating $X.X XXXX consisted For period fiscal operating of second million intangible fiscal of the assets, compared of XXXX. $XX.X quarter million

million for approximately restructuring operating of income Excluding of $XX.X second was or million sales XX.X% adjusted costs, fiscal quarter 'XX. the of $X.X

Excluding of $XX.X million quarter acquisition income expense year. $XX.X was second of of for approximately XXXX million last million $X million for same XX.X% fiscal the costs. or sales. Interest for compared second fiscal Adjusted $XX XXXX was operating period to the of the quarter

adjusted the period common stockholders $X.XX to attributable $X.XX net second the year. $XX.X the attributable year. million fiscal same compared was year. $XX.X period million fiscal $XX.X to the quarter to the to For stockholders second per million per stockholders of income fiscal basis, an to reported and $XX.X second XXXX XXXX quarter attributable last to net period On second company common compared $XX.X period was earnings stockholders same $X.XX of million net same common for $X.XX an to the to the fiscal share for for period million fiscal quarter for for second compared for XXXX million basis, last XXXX was million an adjusted for last share for share fiscal diluted per income attributable year. same per same of quarter to the Net income $XX.X basis, compared last quarter compared was On the the $XX.X last $XX.X share per share common Diluted of for XXXX, for year. the second of same year. to for was quarter the last of income compared period adjusted XXXX earnings the and On of million

XX flow. cash XXXX, $XX.X $XX fiscal generated of company $XX.X to expenditures We million quarter the were compared the for fiscal last September the to million million of $XX.X cash year. for second cash leaving question-and-answer acquisition compared call loan the on which to million by in down million million. I to the of turn The $X.XX XXXX Turning activities the partially drawing same was the in in period, same to $X.X now line, for second on the $XX from like year. offset of debt the hand $XX.X Capital on operator total paid the as operating revolver back quarter period would session. million last for billion period of the term Spec was during and

Operator

Morgan first from with Kristine is Our Stanley. Liwag Instructions] [Operator question

Kristine Liwag

regarding customers the revenue serving you're well. demand color your and expect decline the what and from by end a in Maybe as a seeing regarding up? you're rest signals you to the focusing industrial decline year more on of markets different saw we market, shape end the sequential Can year-over-year give how you

Mike Hartnett

Well, we'll try.

see. Let's

I our it at markets, we industrial when on at they're -- overall, When second they're we look look at when X.X%. Dodge's -- up So Well, year-to-date -- Yes. Dodge, steady. end look

mean, the quarter, supply wasn't a timing between split at supply but So it's Dodge's most I second big in that when year comps I is of way. -- at in I The the last product basically international that -- affects that chain. upon between happened received, orders completed were when that international catch-up there's the look negative And piece, some chain and based quarter. XX-XX look a

chain has much aggregate, down give beverage But and you So those oil mining markets, much the overall, steady. And some down. should pretty construction and up they're now the the are food ones industrial to some are is I warehousing semicon, are normalize gas, think ones supply X. And makers. up And pretty they're are normalized. -- end And that and about itself. are and for equipment that and pretty that

offsetting steady. thing seems the be is to other one So the and whole

much expect does really and hard to in with percent you what Fed fourth on project hear to an what what few is do. into points up stir pretty to for has it a think steady the last with a few a your basis doing and see the the it's on employment to be quarter comp It's quarter-to-quarter quarter up and sort just percent. well. year, GDP be of the given stew up growth industrial that projection and and be that third And business -- percentage the We around maybe industrial figures all to going for don't business and anybody that some then I what comes of you put sort in is

Kristine Liwag

And is is the really more gas, mining looking one food doing and margins, equipment? differential It's warehousing, overall well terms margin bucket profitable some under Like context. pressure semiconductors, oil than there the and a between Great. of an beverage, like the helpful versus others they're perspective? aggregate at construction and that's ones there in

Mike Hartnett

construction Yes. and mining warehousing pretty fine Well, profitability wise. the ones [indiscernible]. is But not okay. that weak are is It's down, is semicon and

margins up -- off So offering we're of are of extent, little that in a ones some the those are that some the that the our are some are To stronger compressed. that the ones bit. rationalizing markets than markets where are

period, that a so an effect, line it will a -- be our to second And order effect. it longer be that will but revenue will will affect over

Kristine Liwag

the able trying the is know of you're And first low-cost a years in. plant quarter, to talk the we the focused. step plan transaction mean, the the great if of I XX.X% the drivers to from margin, gross you more of margin I more next performance. manufacturing If the do to more look extract you from of Dodge. is X get and Can And you deals? guys. one about pretty the generally starting could But are this synergies regarding synergy sneak gross I a at high to for third bar XX.X% of shifting adjusted, in at That's

Daniel Bergeron

is this Kristine, Yes. Dan.

million Dodge of in driven rate X-month the for in sales period lot million to done margin a run $XX were a about of quickly based get For X,XXX That synergy by the about million and points $XX on synergies. up basis us pretty $XXX [indiscernible] by at puts on place. EBITDA

pick teams, ones our working are We're a sales X tent next I poles think good to that longer industrial to lot to contribute there. the nicely side. activity with cross-selling are in that of the starting we're that years is really which up is over going X on the the to on see starting

we and come line. have the our XX next XX on an in to should start top impact on that So seeing the growth months

U.S. in-sourcing to our more And on continue into of We for us. work that's facilities. goal product long-term Mexican a plants into our and

So it's benefit years. X activities, from going to X that's the to those going to get take

So of projections impact X here. we'll X that see a on lot year for our us year in more and

So now the process than further our company to take in And ahead buying the and and we the good advantage still to some P&L. of really I we think we're we're SG&A session think lot our we be. a come leverage would size the have opportunities just to of try starting thought in of I activity and along

from activity services insurance nice have have and acquire, to everything months a the So we're company XX we XX there in a that negotiating leverage now, contracts. seeing over bigger we going some to which different little more from next to to start is

are happy process now. So we're pretty where the in right we

Mike Hartnett

Yes, other for I one bit us that might production and difficult expand expand thing, products Dodge production, a new add are to plants pretty with it our the lines. for full in makes little the which U.S. is to Kristine,

Dodge February, of moving floor into open XXX,XXX so ] we're And the will completed feet some in in United for [ Takata lines. the operations States plant square ], Dodge our and adding product Tecate for new space [ in to new be up where

on space have only in States United also under that. chain which us been And supply so has been new achieve -- source the economic opens stress. cost not benefits in It we're up support. and allows about growth, pretty products for constrained by product But has it it that to excited labor

think that Yes, hopes big So I new -- plan. there's we for have

Operator

with is Global. Our next from question Alembic Pete Skibitski

Peter Skibitski

U.S. seen now, because for if industry, seems still. in -- slowed below of but here in a about wondering big do a have so was and were your already recession, could people a you I in so factories markets. in we've Mike, kind you performance. just many the ISMs things year like, it organically, Europe ask end be think picture touch but a bit Nice is not I question Obviously, full industrial XX

the in end Or So visibility the it like Does feel does deep you? offsetting and a just for that of federal in just kind we it feel it part you late you kind to I feel wondering like kind you the your you is -- does you? feel. do guys? I'm we're How the wanted Are to have, recession? markets given that of all of it just all touch of what like cycle? think spending the gut

Mike Hartnett

with Well, drifting I think right now, the tide. of we're kind

if you We're in have new In products you we're introduce. terms mean grow can and the can to and industrial, economic I grow of if think I interesting share your demand -- way, don't great not industrial gaining any we're losing. in market about great you even. staying some

make have So your wind. to own to extent, some you

building we're machines. so wind And

we it. That's And see see it. how so we how that's

Peter Skibitski

that fair. have That's the maybe up But imagine guess, on product -- to me. in about are, environment. that on because certain way don't bit new Is And a makes how extent you I I guys price. sense know to guess, gives are new but you widespread areas they No, lightening I it's disinflationary think opportunity the have maybe an introductions, I it? the to of that little a you it you to extent pricing

Mike Hartnett

and to that an with figure the we when think would to how how of the -- out order took kind and -- Dodge we I fingernails ago, all business get into improve we're of and of years X Well, business your synergize it RBC And to say is it amount endless bought first Yes. of thing. I sort meetings. that

your forefront. isn't the development So on product

ability X production. constrained were for years to were we with of because And some for so chain cases, their for year, of out ones. was the they the very, production making. unwilling increase also found pulling chain to ready after first and very last happy product they their promising the supply been getting new sales developing were by the production they've products they increase the in that supply And started some found we that commercialization were And are their whatever what

So more, market a based there on a the we if decided this we produce these them. that, for that, are well well-accepted in is And hey, listen, marketplace. -- is product

do floor And production more? equipment how items. produce to that up for we open so the that for to And these need answer space we particular came

constructed. a hence Takata plant new is so off go. in And And we

kind mean, time but first and cooking, never Dodge it priority. of some wasn't get the that's it It the so with through takes is new takes we'll motions usually I go And order to it of acquisition. -- the And integrate.

beyond mode. growth we're so that And into the now, and we're

Operator

KeyBanc Our Barger next Steve Markets. question is from Capital with

Steve Barger

that's Industrial Your competitors top differences and on some Or there bearing market other quarter. the line Do public are resilient? of this the make all outperformed other Dodge that end you segment think the between companies exposure? public platform your structural more some

Mike Hartnett

We're markets. some there's -- in some products. service the some some of overlap just of end extent, everybody. end many of to markets cases, our same our than and with better with great We our It's

benefit. a to where And in to at that And it's can -- really So Dodge I tide, of the support. I and times are. with be in accruing anybody's well think this industrial like want the drifting you're an customers that's trust. think our test you we kind definitely customer of that's we we don't sort do And a service company leader And in recognized. and so where job exceptional customer And loyalty.

Steve Barger

XQ was up seems the certainly almost in accruing it was Incremental XXX XX%. points basis Industrial margins. to margin XX%. be And to margin to Yes.

look similar incremental As quarter, I is which was a amazing. this in segment margin-wise? XQ you result see in pretty at XX%, consolidated Industrial the Did

Robert Sullivan

look in to Yes. margins similar QX, saw QX sustained Yes. very strength in Industrial The what there. you

Steve Barger

And we're saying all primarily this Dodge synergy? is

Robert Sullivan

the growth have earlier, talked about absolutely basis XXXX%. at think Dan is their driving Industrial well Dodge well. the X,XXX I margins points done as that Synergy RBC But products

it's seen in entire of industrial. that a segment across lot really we've been So the strength

Steve Barger

us the and environment conversations chance Got we're it. segment of with dynamic calls. can you drifting have margins industrial informed there just in on earnings the you'll that kind more increasingly any Is along. we becoming referenced give And the Mike, release so that

Robert Sullivan

certainly the were the can the that. basis, we'll which looking well. quarter, future at as margins think that look we in It's XX% up suspect you. definitely And see see releases to they're continue story on ticked Yes, at continue build we increased at to are story Yes. to I we we look the were future but that with up, The can should the an We aerospace up that every the obviously But out quarter plans adjusted less Aerospace this -- the grow periods. rates. And margins this point, X as in the Q there for is quarter, still gross in capacity I mark. XX%. around breaking we'll pick continue see industrial from but for is it the than the margins trend

Steve Barger

our release it. great the that call. time update it can just in we rest Got get with of models before would your the Yes, Thanks. data to be so real

Operator

next Our Weber Seth Wells Fargo. question with from is

Lawrence Stavitski

this Seth for morning. on Larry is This

line and for line spec you the could forward? give little are Spec . that a color about on going your more if expectations wondering acquisition, bit what was Just

Mike Hartnett

to kind basically just lines, their this That's same They ends bearings produces customer reframe aerospace similar very customers. as products, identical. and plane for spec base RBC, spheric Spec of in rod line cases, have some line. the Sure. Well, business.

So very how their and markets, their with the we're they manufacturing comfortable ran aligned We're business. methods. here with line Spec

made a the And acquisition workforce us our So lines to more gave very capacity important largest a it more environment. our and us in plant customers. gave trained high-demand

acquisition So an this of acquisition our us. haves there. all for must really right hit checklist the for That's

a for owners And and their business. so learned for looking We to retire, about it. we're home the decided

of the sort story the behind acquisition. that's so background And

Lawrence Stavitski

I down Are debt in defense aerospace And Got look mentioned a guys terms And and had looking bent X.Xx. you bolster the guys that And to are the about that of like color. appreciate net you your business. know looking? you. towards pipeline guys still you for now acquisition to -- what still pipeline? you I does you

Mike Hartnett

certainly still looking. We the Well, have we're immediate [indiscernible]. in don't anything

the ideas -- current We have we concepts there's candidates immediately nothing and and theories. we're studying but actionable. And

Lawrence Stavitski

Okay. Got And just and Aerospace to you. turning Defense. then

mentioned first about the should of increased expecting growth too you above getting rates. a build of not growth XX%. You in [indiscernible] back rates guys bit and the the the Or And -- kind brakes think the Are guys to half we year? old you for quarter accelerate here little tapping

Mike Hartnett

and attention you space, I'll it per companies, jump going don't where that we're Well, aerospace a kind the now, we on place business And and -- your of enough before you with you have their content in And to ships we're next process so a many is are so a plan. because were just X-year And exceeding put now, right where the everything is all we're pandemic. what year, but through we going forth. the to already. on XX% do and paying you ship of support jump aerospace tell and right have particularly XXXX companies to how we if in can't floor in if defense

so to to standing forth our you we have, of good capacity demand the terms into in coming book. on that of what the go we to in support tell toes And our so have, our people tippy of order we're know is. number that steady-state the we see so on we're current But terms we what and truth,

We're grows strong those be markets. looks -- into substantially next like -- year in that defense in the There's I'd segment. be say Yes, a year next to happens So whole strong for that very the event tailspin. some we're to aerospace a unless going us going thing year world

Operator

from is from Goldman Sachs. Ritchie next Our Joe question

Vivek Srivastava

your in Vivek Srivastava the SG&A than on question for Joe. as is My on first better of sales. It came is percentage much a definitely This previous guidance.

much caused what down. And the upside was stock just very then comp quickly, curious And step it Just synergy of by driven the how also specifically? surprise?

Any a more forward? going expectation? on what indication reasonable So stock be should comp

Robert Sullivan

Yes, absolutely.

costs experienced So we of that different certain come in QX. items timing fringe that in there was weren't had some and favorability that in in, QX repeating

the QX So some we on as comp quarter. was reduction percentage sales. stock in expect the to $X.X this expense. be offered the that of a comp I million improvement SG&A stock There temporary $X.X million to compared saw

favorability percentage some of the XX.X%. out the So nice we which drove But variable -- in, as somewhere we're sales came the we costs we to there had release, quarter. thinking between quarter, really in a as as next discussed of XX% in that put

Vivek Srivastava

the productivity you freeing think maybe just should hear through, up plant, more we maybe on how out this coming comes or And new medium plant up? you to But costs just new the are about as helpful. maybe elevated of would some floor great headwinds That's space. the plant point that in any term, because

Daniel Bergeron

Yes.

it's see talking we expect floor that months. to the the plant For big that real disruption to our Hartnett capitalize the XX next plant don't over Dr. cost and was Takati to space impact about there a XX and

and So so. normal it CapEx should our in fall

Vivek Srivastava

a just maybe more helpful. Great. question. That's And medium long-term to bit

now. projects, mega lot a we of activity right seeing projects in ground breaking Just which are the are

orders, on some start would do a cost? benefits see your as the provide especially total what helpful? percentage of the can you you on color to When of flow be content side industrial plant is in any Just your

Robert Sullivan

clarify the I'm question? sorry, can you

Vivek Srivastava

absolutely. Yes,

So A of of plants. battery billion now. projects such lot announced projects LNG the billion we production, X XXX semiconductor a about of large over lot like EV being have projects,

if when from curious start you projects can -- hitting you seeing these Just some on provide your color you P&L? should can start have you orders

Mike Hartnett

substantially for And waiting the the think to that's that, our orders And which say has I the that be on so bill, I see very would bill has minimal. economic to it's and industry to had be -- from the infrastructure approved. the it's Well, important business. is oldest bills seems think impact far of I still -- the would to the been environment that everybody

So today. once U.S. example, around we we look when capacity expect that most the for the do is much of that , aggregate hit market, markets. part, running at the spending we at the see -- that for And full does

plants will cement absorb infrastructure capital and the to dams have items and roads, aggregate asphalt built the the the for. and order in new that that improve that in that spending be improve produce to produce meant is improve -- So produce and to end

be what system. that at the everybody of XXXX we're must in So beginning of have highway to spent. way have felt must entire -- the really is the phase. This when Interstate announced is felt this I'm sure it this building -- waiting money it [indiscernible] -- was for that

Operator

Ron is Our from with Epstein America. of Bank next question

Unknown Analyst

Ron. on for talent for acquisition, detail guys give what that's you're where Could on is still rate high seeing attrition at? [indiscernible] George more labor is you This and

Mike Hartnett

heavy we'll so so in seeing on unusual the heavy mean forth. the unusual ridiculous valve And makers California at and to and makers on typically, and year-to-year, engineers in with XXX bring his we're problem country. the seeing production not probably relative not college in in to in terms labor. in are problems seeing makers We're I you facilities. But no close Coast, -- and recruiting bearing graduates today. We're that's from legislations. train light we're of And problem the with Coast, into the problem them Midwest, West Southeast dependent we're that having with the heavy to assembly where are it's on upon labor. in new regard and We're East not seeing any more that level

Unknown Analyst

see Great. to give marine that's update on supplemental an just so far of And you expecting [indiscernible] going? you from Could the Are what guys exposure, one for any you're seeing benefits then funding? how the other the one.

Daniel Bergeron

for Right we a News the busy new double business lot There's new are it quoting activity. new grown very months. XX we to now, and digit of Newport Yes. expect on That next us, for and and boats has working Virginias Columbias. Boat with and Electric at

Operator

is KeyBanc from question next Barger Markets. Steve of Capital Our

Steve Barger

I consolidated make in the margin the versus the your the conservative? I'm relative sustainability half. getting to I is plus step want of first op just margin some or to understand Rob, to historical going the in the XX% like down midpoint, XQ quarter? sure guide. have seasonal at the commentary range mid-XX% of one segments At on the Or levels a headwind Is guide kind in

Robert Sullivan

lose headwind unusual a see last always perspective, margin a a I XX% tricky gross last was believe is target, But a felt from quarter, on still quarter third a to we to alluded one, a It's margin right? that. from and good of year I or that not we as days. gross Because The front. number production

So strong challenging just with but reduces you it's margin QX just the a looks which our profile, front. on -- know holidays, quarter that

So up that's shape to year. looking for kind of where the we're

Steve Barger

Is in segment the days XQ? taking Yes. or one fewer to outsized hit from other

Robert Sullivan

mean I -- on the it depends location.

So no, the pretty across not really. It's organization. much

Daniel Bergeron

this is Steve, Dan. Yes.

down it we actually impact around a classic holidays. the I closed because be RBC lot more think would on

of X And so in we were prior X right we'll at first months if the where months, on be year. you the look track the to

Operator

from Our Tim Citi. next Thein question is with

Timothy Thein

Great.

terms the the in in more OEM discussion kind to just into aerospace expectations for And clear. give maybe supply which 'XX. half what ramp, in seeing But discussion aftermarket, Is just half A is just into issue you there? chain you terms production your year of in one then lot the what back just has you're of a you can been back terms just bit discussion, 'XX. of is back little there? again, the the of your to are seeing constraint on us a year into of of first the expectations and at the The going Or all? color maybe of some

Mike Hartnett

on we're at process February. aerospace 'XX together can plants we spend we that the And with products. is we we're then much X Well, can the that have October -- it know in budget for and per business put by budgets 'XX And in what we in different that then side of and so look establishing through December are and January. to per revenue outlook by how extremely is be going FY plant review, SG&A And defense now, and us. business start on going unit. we process to unit, XX our strong refine servicing when usually November And we our that right

So that's sequence of the events.

And in more. our and rare looks revenue in outlooks me so And where up by it the we're the maybe little a is by up XX%. second they're exception, for 'XX by based turn normal business and content and establish what to on driven everybody to aerospace defense out upon with plant like bit baseline units. And is driven

What places very So we other some to it's really places, going so produce. depend in do labor? the difficult. it's get on, how the able not that's to some we're difficult. In extent, we to Can much country, in

So there's all in a to operational going lot pass but through strong to together, be to of a either order it year. it's very put

could you double we the turn had we mean, our that double so now, -- we can't if businesses double would some that the fast. up capacity, And just sales. I right of if

Timothy Thein

it. Got Got it. Yes.

But too But bit -- for expectation, And change the the language [indiscernible] that, of little year quarter. sales the terms quarter? whole year. to year way was sales obviously give a is Okay. at probably you doesn't in net finely. line, months which changed expectations from just net full your from acquired the any last there this remaining all have Subsequent last then changed full you Spec a the from of [indiscernible]

Mike Hartnett

year. deeper XX the we're into mean, I Well, days

So pretty XX the and is We treating defense on it's the we how economy industrial treating how information businesses. much aerospace businesses. have days our know more

So it we accordingly. adjust

Timothy Thein

it. Got

ago. So maybe bit a taken arrow out maybe that's compared little guidance shocking, of softer, a offset than little not but XX to and a which that's certainly the is is stronger industrial days That's a more maybe bit environment? fair

Mike Hartnett

That's Yes. right.

Operator

like Hartnett over are questions any There time. this to would call remarks. Dr. you. no turn at I Thank the further for now to closing

Mike Hartnett

you quarter, second appreciate and probably call everybody that Good the I for again And Okay. conference I to good appreciate concludes day. participating. February. our speaking Well, for questions. our early look all forward to the in --

Operator

today's concludes This conference.

at You you disconnect participation. may your time. your Thank this for lines

RBC Bearings (RBC) 9 Nov 232024 Q2 Earnings call transcript