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)	January 29, 2004
Exact name of registrant as specified in its charter	Baldor Electric Company
State or other jurisdiction of incorporation	Missouri
Commission 70, Identification No.	01-07284
IRS Employer File Number	43-0168840
Address of principal executive offices	5711 R. S. Boreham, Jr., St Fort Smith, Arkansas
Zip Code	72901
Registrant’s telephone number, including area code	479-646-4711
Former name or former address, if changed since last report	N/A

Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The following information is being provided under Item 12 – Results of Operations and Financial Condition. Such information, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

On January 29, 2004, Baldor Electric Company issued a news release to report its financial results for the fourth quarter and year ended January 3, 2004. The release is furnished as Exhibit 99 hereto.

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.

	Baldor Electric Company
	(Registrant)
Date     February 2, 2004	/s/ Ronald E. Tucker
	Ronald E. Tucker
	Chief Financial Officer and Secretary (Principal Financial Officer)

BALDOR ELECTRIC COMPANY

INDEX OF EXHIBITS

Exhibit No.	Description
99	Company issued news release dated January 29, 2004

EX-99

Date:	January 29, 2004	EXHIBIT 99
Subject:	Baldor Electric Company
	4th Qtr and YTD 2003 Results and Discussion
Page:	1 of 2

Fort Smith, Arkansas – Baldor Electric Company (NYSE:BEZ) markets, designs, and manufactures industrial electric motors, drives, and generators and is based in Fort Smith, Arkansas. Today Baldor announced the results of the fourth quarter and year 2003.

	4th Quarter							Year
	2003		2002					2003		2002
(in thousands except per share data)	14 weeks ended Jan 3 2004		13 weeks ended Dec 28 2002		% Change			53 weeks ended Jan 3 2004		52 weeks ended Dec 28 2002		% Change
Net Sales	$	146,498	$	135,931	+	8	%	$	561,391	$	549,507	+	2	%
Cost of Sales		106,367		97,896					409,294		396,814
Gross Profit		40,131		38,035	+	6	%		152,097		152,693	–		%
SG&A		28,016		26,750					106,343		107,407
Operating Profit		12,115		11,285	+	7	%		45,754		45,286	+	1	%
Other (Income) Expense		277		307					989		2,072
Profit Sharing		1,443		1,294					5,436		5,285
Earnings Before Income Taxes		10,395		9,684	+	7	%		39,329		37,929	+	4	%
Income Taxes		3,844		3,584					14,550		14,034
Net Earnings	$	6,551	$	6,100	+	7	%	$	24,779	$	23,895	+	4	%
Earnings Per Share – Diluted	$	0.20	$	0.18	+	11	%	$	0.74	$	0.69	+	7	%
Dividends Per Share	$	0.14	$	0.13	+	8	%	$	0.53	$	0.52	+	2	%
Average Shares Outstanding		33,307		34,552	–	4	%		33,405		34,622	–	4	%

John McFarland, President and CEO, remarked on the Company’s results. “Fourth quarter sales increased 8% due in part to three additional selling days. Earnings increased 7% and earnings per share increased 11% to $0.20 per share, due in part to share repurchases. For all of 2003, sales increased 2%, earnings increased 4%, and earnings per share increased 7% to $0.74. Cash flow from operations for 2003 of $62.2 million was a Company record.”

Mr. McFarland also said, “In the last eight weeks, we have seen an increase in incoming orders. We believe this order rate will continue and have recently increased our production schedules. This increase in orders and production should have a positive impact on sales and margins during the first quarter of 2004.”

R. S. Boreham, Jr., Chairman, said, “We are pleased to see increasing orders for our custom products. This increase is due to our strength in building products to customers’ specifications and delivering them quickly. We expect to see custom product sales continue to grow in the future.”

Balance Sheet Summary					Operating Margins
(in thousands)	2003		2002			Sales		Operating Margins
	Jan 3 2004		Dec 28 2002
Cash & Marketable Securities	$	47,289	$	51,670	Q4 ‘02	$	136	8.3	%
Receivables		83,200		83,630	Q1 ‘03	$	137	8.4	%
Inventories		112,123		113,140	Q2 ‘03	$	139	8.0	%
Working Capital		161,722		199,023	Q3 ‘03	$	139	8.0	%
Total Debt		105,284		107,175	Q4 ‘03	$	146	8.3	%
Shareholders’ Equity		261,488		274,598	(in millions)
Cash Flow from Operations (YTD)	$	62,201	$	53,574

(continued on page 2)

Date:	January 29, 2004
Subject:	Baldor Electric Company
	4th Quarter and YTD 2003 Results and Discussion
Page:	2 of 2

We have prepared answers to a list of questions often asked by shareholders.

Q … Why were gross margins less than last year?

A reduction in finished goods inventory and the impact of shifting one week of annual vacation from third to fourth quarter resulted in lower absorption of fixed costs. While gross margins declined, operating margins were flat as we continued to reduce SG&A costs. During the first quarter of 2004, we are planning increased production in every plant due to higher demand and no scheduled holidays.

Q … How will increasing raw material prices impact the Company during 2004?

We are experiencing increased raw material costs. To offset these increases, we have announced a price increase effective March 1, 2004.

Q … How did your balance sheet change during the 4^th quarter?

Our balance sheet continued to strengthen during the quarter. Compared to the third quarter, our cash balance increased and we improved collections of accounts receivable. Cash flow from operations grew to a record $62 million. During the year, we invested over $15 million in capital improvements and increased our dividend rate by 8%, our 10^th increase in ten years. The compound annual growth rate of our dividends has been 15% since 1976.

YTD Cash Flow from Operations

2000	2001		2002		2003
$46.4	$	38.3	$	53.4	$	62.2
		$ millions

Q … How are incoming orders?

The order rates for the last few weeks of the fourth quarter were improved and those rates continued in January. We are encouraged by the improved order rate, particularly for motors, which has allowed us to increase our scheduled production.

Q … Is this order rate sustainable?

Yes, we believe it is, because it’s coming from several areas. We are seeing orders from a wide range of industries and across our product lines. Not only are some traditional customers increasing their orders, but our new customers are ordering at increased levels as well. Distributors began to rebuild their inventories, and our international sales were up 22% for the quarter.

Q … How was your generator business this quarter?

Generator sales nearly doubled in the quarter and made up 7% of our sales. For the year, generators made up 5% of our sales and increased over 50%.

Q … Are you making any public updates in the near future?

We will make a presentation at the Gabelli & Company, Inc. 14^th Annual Pump, Valve & Motor Symposium on Thursday, February 5, 2004, at 10:40 a.m. (EST) in New York City. The live presentation can be accessed from our website at www.baldor.com on the day of the presentation, and an audio archive will be available for 60 days.

This document contains statements that are forward-looking, i.e. not historical facts. The forward-looking statements (generally identified by words or phrases indicating a projection or future expectation such as “outlook”, “optimistic”, “trends”, “expect(s)”, “assuming”, “expectations”, “will continue”, “should”, “forecasted”, “estimates”, “expected”) are based on the Company’s current expectations and some of them are subject to risks and uncertainties. Accordingly, you are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward looking statements as a result of various factors. The factors that might cause such differences include, among others, the following: (i) changes in economic conditions, (ii) developments or new initiatives by our competitors in the markets in which we compete, (iii) fluctuations in the costs of select raw materials, (iv) the success in increasing sales and maintaining or improving the operating margins of the Company, and (v) other factors including those identified in the Company’s filings made from time-to-time with the Securities and Exchange Commission. These statements should be read in conjunction with the Company’s most recent annual report (as well as the Company’s Form 10-K and other reports filed with the Securities and Exchange Commission) containing a discussion of the Company’s business and of various factors that may affect it.

For more information contact:			R. S. Boreham, Jr.	Chairman
Baldor Electric Company	Phone:	479-646-4711	John A. McFarland	President & CEO
P O Box 2400	Fax:	479-648-5752	Ronald E. Tucker	CFO & Secretary
Fort Smith, Arkansas 72902	Website:	www.baldor.com	Tracy L. Long	Treasurer & Assistant Secretary