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RBC Bearings appoints new director with financial expertise

Published 10/01/2024, 04:12 PM
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OXFORD, Conn. - RBC Bearings (NYSE:RBC) Incorporated (NYSE: RBC, RBCP), a prominent manufacturer of precision bearings and components for various industries, has announced the appointment of Frederick J. Elmy as a director of the company. The company's Board of Directors confirmed his election as a Class III director with a term extending until the annual meeting of stockholders in 2025. Elmy has also been designated as an audit committee financial expert and will serve on the company’s Audit Committee.

Chairman and CEO Dr. Michael J. Hartnett expressed enthusiasm for Elmy's addition to the board, highlighting the extensive executive and financial experience he brings from his tenure at PricewaterhouseCoopers LLP (PwC). Elmy, in turn, shared his honor at being elected and his anticipation to contribute to RBC Bearings' strategic and operational goals.

Elmy's professional background includes a long-standing career at PwC, which he joined in 1982 and where he became a partner in 1994. His roles at PwC were diverse, ranging from National Office Partner in Accounting and SEC Services to Audit Partner in various sectors, and culminating as Financial Markets Partner in Accounting Advisory and Treasury Services until his retirement in 2021. His experience includes working with senior executives, audit committees, and boards of directors on a wide array of financial and regulatory matters. Elmy holds a Bachelor of Arts in Economics from the University of Pennsylvania and is a Certified Public Accountant.

RBC Bearings, headquartered in Oxford, Connecticut, serves the industrial, aerospace, and defense markets with its specialized precision bearings and components. The company emphasizes the production of technical or regulated bearing products that require advanced design, testing, and manufacturing capabilities. This appointment is based on a press release statement from RBC Bearings Incorporated.

In other recent news, RBC Bearings Incorporated has reported a series of developments. The company announced a 5% increase in sales for the first quarter of fiscal 2025, predominantly driven by a 23.7% growth in its Aerospace and Defense sector. In contrast, a slight contraction was observed in its Industrial business, which is expected to strengthen later in the year.

RBC Bearings has also significantly reduced its debt by $60 million and witnessed a 57.9% increase in net cash from operating activities. Its adjusted gross margin improved to 45.3% of sales, while adjusted net income reached $2.54 per share.

In a recent stockholders' meeting, several key proposals were approved. This included the election of three Class II directors, the ratification of Ernst & Young LLP as the independent auditor for fiscal 2025, and amendments to the corporate governance structure. Notably, an amendment to the company's certificate of incorporation now ensures that directors and officers will not be held personally liable for monetary damages for breaches of fiduciary duty.

RBC Bearings is cautiously exploring merger and acquisition opportunities with companies similar to their Aerospace and Defense sector. These are recent developments and reflect the company's strategic focus on bolstering its financial health and corporate governance.

InvestingPro Insights

RBC Bearings' appointment of Frederick J. Elmy as a director and audit committee financial expert comes at a time when the company is experiencing solid financial performance. According to InvestingPro data, RBC Bearings boasts a market capitalization of $8.79 billion and has demonstrated strong profitability with a 43.49% gross profit margin in the last twelve months as of Q1 2023.

The company's financial health is further underscored by an InvestingPro Tip indicating that RBC's liquid assets exceed its short-term obligations, suggesting a robust balance sheet. This financial stability could provide Elmy with a solid foundation as he joins the board to contribute to the company's strategic goals.

Another relevant InvestingPro Tip reveals that RBC Bearings is trading near its 52-week high, reflecting investor confidence in the company's performance and outlook. This positive market sentiment aligns with the company's decision to bring on board an experienced financial expert like Elmy to help guide its future growth.

For investors seeking a deeper understanding of RBC Bearings' financial position and prospects, InvestingPro offers 10 additional tips that could provide valuable insights into the company's investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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