8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

_______________________

Date of Report

(Date of earliest

event reported):April 30, 2007

              Regal-Beloit Corporation             

(Exact name of registrant as specified in its charter)

Wisconsin	1-7283	39-0875718
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

          200 State Street, Beloit, Wisconsin 53511-6254           

(Address of principal executive offices, including Zip code)

  (608) 364-8800  

(Registrant’s telephone number)

  Not Applicable  

(Former Name or Former Address, if Changed Since Last Report)

_______________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

 On April 30, 2007, Regal Beloit Corporation (the “Company”) issued a news release reporting the financial results of the Company for the financial period ended March 31, 2007. A copy of the Company’s news release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits.

(a)   Not Applicable

(b)   Not Applicable

(c)   Not Applicable

(d)   Exhibits. The following exhibit is being furnished herewith:

99.1 News Release of Regal Beloit Corporation, dated April 30, 2007.

SIGNATURES

 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	REGAL BELOIT CORPORATION
Date:  April 30, 2007	By:	/s/ Paul J. Jones
		Vice President, General Counsel and Secretary

REGAL BELOIT CORPORATION

Exhibit Index to Report on Form 8-K

Dated April 30, 2007

Exhibit Number	Exhibit Description
99.1	News Release of Regal Beloit Corporation, dated April 30, 2007.

EX-99.1

NEWS RELEASE
FOR RELEASE ON OR AFTER: April 30, 2007
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
	David A. Barta Vice President, Chief Financial Officer 608-361-7405
Page 1

REGAL BELOIT REPORTS 11%

EARNINGS PER SHARE INCREASE

ON STRENGTH OF INDUSTRIAL MARKETS

April 30, 2007 (Beloit, WI): Regal Beloit Corporation (NYSE:RBC) today reported financial results for the first quarter ended March 31, 2007. Strong performances by our industrial businesses offset a weak residential HVAC market. The residential HVAC market experienced record year-over-year decline driven by the weak housing market and a comparison to a strong 2006 industry performance which was the result of the 13 SEER legislation that went into effect in January of 2006. The Company’s initiatives continued to gain traction and had a significant impact on the Company’s performance. New products and acquisition growth fueled sales growth, while Lean Six Sigma helped support operating margins.

Net sales increased 5.1% to $418.6 million from $398.3 million in the first quarter of 2006. In the Electrical segment, sales increased 6.2% as industrial motor and generator sales increases of 20% and 24% respectively, offset a 14% decline in residential HVAC revenues. Motors sales growth was also aided by $17.9 million of sales attributed to the Sinya motor business acquired in the second quarter of 2006. Sales in the Mechanical segment were down 2.1% from the prior year period; however, the sale of substantially all of the assets of the Company’s cutting tools business in May 2006reduced segment sales by approximately $4.7million for the quarter.

The gross profit margin for the first quarter of 2007 was 23.2% as compared to the 23.4% reported for the first quarter of 2006. The reduction was a result of continued increases in material costs and lower liquidations in our HVAC business. Material cost increases were partially offset by higher selling prices and productivity improvements. Income from operations was $47.3 million or 11.3% of sales, an 8.5% increase over the $43.6 million or 11.0% of sales reported for the first quarter of 2006. Net income in the first quarter of 2007 was $26.8 million, a 12.7% increase from $23.8 million reported in the first quarter of 2006. Diluted earnings per share increased 11.1% to $.80 as compared to $.72 for the first quarter of 2006. 

“We are pleased with our results for the first quarter, especially considering the most challenging residential HVAC market in decades and the continued material cost pressures,” commented Henry W. Knueppel, Chairman and CEO, “The two-thirds of our business that is commercial and industrial performed well during the quarter. While we are not expecting the HVAC market to strengthen significantly in the second quarter, we remain confident in our future as evidenced by the recent 7.1% increase in our quarterly dividend. We expect the EPS for the second quarter to be in the range of $.99 to $1.06.”

Regal Beloit Corporation

News Release

Page 2 of 5

Regal Beloit will be holding a conference call to discuss first quarter financial results at 1:30 PM CDT (2:30 PM EDT) today. Interested parties should call 800-288-8960, access code 871624. A replay of the call will be available through May 14, 2007 at 800-475-6701, access code 871624.

Regal Beloit Corporation is a leading manufacturer of mechanical and electrical motion control and power generation products serving markets throughout the world. Regal Beloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia.

CAUTIONARY STATEMENT

This news release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. 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,” “plan,” “expect,” “anticipate,” “estimate,” “believe,” or “continue” or the negative of these terms or other similar words. Actual results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors, including:

·   economic changes in global markets where we do business, such as currency exchange rates, inflation rates, interest rates, recession, foreign government policies and other external factors that we cannot control;

·   unanticipated fluctuations in commodity prices and raw material costs;

·   cyclical downturns affecting the global market for capital goods;

·   unexpected issues and costs arising from the integration of acquired companies and businesses;

·   marketplace acceptance of new and existing products including the loss of, or a decline in business from, any significant customers;

·   the impact of capital market transactions that we may effect;

·   the availability and effectiveness of our information technology systems;

·   unanticipated costs associated with litigation matters;

·   actions taken by our competitors;

·   difficulties in staffing and managing foreign operations;

·   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 28, 2007 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 news release are made only as of their respective dates, and we undertake no obligation to update these statements to reflect subsequent events or circumstances. See also Item 1A - Risk Factors in the Company’s Annual Report on Form 10-K filed on February 28, 2007.

Regal Beloit Corporation

News Release

Page 3 of 5

STATEMENTS OF INCOME

In Thousands of Dollars

		(Unaudited)
	Three Months Ended
		March 31,		April 1,
		2007		2006
Net Sales	$	418,646	$	398,326
Cost of Sales		321,419		305,046
Gross Profit		97,227		93,280
Operating Expenses		49,896		49,662
Income From Operations		47,331		43,618
Interest Expense		5,066		4,795
Interest Income		89		120
Income Before Taxes & Minority Interest		42,354		38,943
Provision For Income Taxes		14,690		14,342
Income Before Minority Interest		27,664		24,601
Minority Interest in Income, Net of Tax		851		813
Net Income	$	26,813	$	23,788
Per Share of Common Stock:
Earnings Per Share	$	.87	$	.77 .66
Earnings Per Share - Assuming Dilution	$	.80	$	.72 .63
Cash Dividends Declared	$	.14	$	.13 .13
Average Number of Shares Outstanding		30,814,3124		30,700,533
Average Number of Shares - Assuming Dilution		33,547,519		32,957,209 32,316,793

Regal Beloit Corporation

News Release

Page 4 of 5

CONDENSED BALANCE SHEETS

In Thousands of Dollars

ASSETS
Current Assets:	(Unaudited)		(Audited)
	March 31, 2007		December 30, 2006
Cash and Cash Equivalents	$	43,086	$	36,520
Receivables and Other Current Assets		299,511		257,510
Inventories		269,488		275,138
Total Current Assets		612,085		569,168
Net Property, Plant and Equipment		273,024		268,880
Goodwill		546,187		546,152
Other Noncurrent Assets		50,910		53,359
Total Assets	$	1,482,206	$	1,437,559
Liabilities and Shareholders’ Investment
Accounts Payable	$	120,377	$	108,050
Commercial Paper Borrowings		49,125		49,000
Other Current Liabilities		108,735		101,871
Long-Term Debt		323,542		323,946
Other Noncurrent Liabilities		105,597		104,717
Shareholders’ Investment		774,830		749,975
Total Liabilities and Shareholders’ Investment	$	1,482,206	$	1,437,559

SEGMENT INFORMATION

In Thousands of Dollars

	(Unaudited)
	Mechanical Segment				Electrical Segment
	Three Months Ended				Three Months Ended
	March 31, 2007		April 1, 2006		March 31, 2007		April 1, 2006
Net Sales	$	51,846	$	52,961	$	366,800	$	345,365
Income from Operations	$	6,326	$	3,707	$	41,005	$	39,911

Regal Beloit Corporation

News Release

Page 5 of 5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands of Dollars

	(Unaudited) Three Months Ended
CASH FLOWS FROM OPERATING ACTIVITIES:		March 31, 2007			April 1, 2006
Net income	$	26,813		$	23,788
Adjustments to reconcile net income to net cash provided
by operating activities; net of effect of acquisitions
Depreciation and amortization		9,883			8,115
Minority interest		851			813
Excess tax benefit from stock-based compensation		(3,310	)		(450	)
Loss (gain) on sale of assets		8			(8	)
Stock-based compensation expense		865			867
Change in assets and liabilities, net		(24,703	)		(35,377	)
Net cash provided by used in operating activities		10,407			(2,252	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment		(12,163	)		(7,257	)
Purchases of short-term investments		-			(4,225	)
Business acquisitions, net of cash acquired		(565	)		(565	)
Sale of property, plant and equipment		-			5,207
Net cash (used) in investing activities		(12,728	)		(6,840	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term borrowing		9,200			-
Payments of long-term debt		(225	)		(197	)
Net (repayments) borrowings under revolving credit
facility		(200	)		3,500
Proceeds from commercial paper borrowings, net		125			5,000
Dividends paid to shareholders		(4,345	)		(3,985	)
Proceeds from the exercise of stock options		747			1,363
Excess tax benefits from stock-based compensation		3,310			450
Net cash provided by financing activities		8,612			6,131
EFFECT OF EXCHANGE RATE ON CASH		275			(66	)
Net increase (decrease) in cash and cash equivalents		6,566			(3,027	)
Cash and cash equivalents at beginning of period		36,520			32,747
Cash and cash equivalents at end of period	$	43,086		$	29,720