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)	July 26, 2007
Exact name of registrant as specified in its charter	Baldor Electric Company
State or other jurisdiction of incorporation	Missouri
Commission File Number	01-07284
IRS Employer Identification No	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

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.

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act.

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

Item 2.02 Results of Operations and Financial Condition

The following information is being provided under Item 2.02 – 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 July 26, 2007, Baldor Electric Company issued a news release to report its financial results for the second quarter and first six months of 2007. The release is furnished as Exhibit 99 hereto.

Item 9.01 Financial Statements and Exhibits

(c) See Exhibit Index

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 July 30, 2007	/s/ Ronald E. Tucker
	Ronald E. Tucker
	President, Chief Operating Officer, and Secretary

INDEX OF EXHIBITS

Exhibit No.	Description
99	Company issued news release dated July 26, 2007

EX-99

EXHIBIT 99

Date:	July 26, 2007
Subject:	Baldor Electric Company
	2nd Quarter 2007 Results and Discussion
Page:	1 of 3

Fort Smith, Arkansas – Baldor Electric Company (NYSE:BEZ) markets, designs, and manufactures industrial electric motors, power transmission products, drives, and generators and is based in Fort Smith, Arkansas. Today Baldor announced unaudited results for the second quarter and first six months of 2007.

	2nd Quarter						Year-To-Date
	2007		2006				2007		2006
(in thousands except per share data)	Jun 30, 2007		Jul 1, 2006		% Chg.		Jun 30, 2007		Jul 1, 2006		% Chg.
Net Sales	$	491,615	$	205,607	139	%	$	887,309	$	397,921	123	%
Cost of Sales		343,031		152,156				626,163		291,857
Gross Profit		148,584		53,451	178	%		261,146		106,064	146	%
SG&A		79,581		32,609				139,903		66,066
Operating Profit		69,003		20,842	231	%		121,243		39,998	203	%
Other Income		773		260				1,670		379
Interest Expense		30,385		1,626				50,913		2,881
Earnings Before Income Taxes		39,391		19,476	102	%		72,000		37,496	92	%
Income Taxes		14,179		7,079				25,920		13,731
Net Earnings	$	25,212	$	12,397	103	%	$	46,080	$	23,765	94	%
Earnings Per Share – Diluted	$	0.54	$	0.38	42	%	$	1.04	$	0.72	44	%
Dividends Per Share	$	0.17	$	0.17	0	%	$	0.34	$	0.33	3	%
Average Shares Outstanding		46,566		32,796				44,110		33,127

John McFarland, Chairman and CEO, commented on the Company’s results, “We are pleased to announce sales for the second quarter of $492 million, a 139% increase. Earnings increased 103% to $25 million, and earnings per share increased 42% to $0.54, on an increased number of diluted average shares outstanding of 46.6 million. For the quarter, gross margin improved to 30% and operating margin improved to 14%. Cash flow from operations increased to $112 million for the first six months of the year. We expect continued good financial results through the balance of the year. These results include the operations of Dodge^® and Reliance Electric™ which were acquired on January 31, 2007.

“We accomplished a number of our objectives during the quarter, including the consolidation of two production facilities, the sale of the motor repair business, and the reduction of debt by an additional $75 million. The integration of Baldor, Dodge and Reliance is going well. We believe this combination makes us a stronger supplier to our customers and offers our employees greater opportunities.”

SELECTED FINANCIAL DATA (preliminary, unaudited)

	2nd Quarter					Year-To-Date
	2007		2006			2007		2006
(in thousands)	Jun 30, 2007		Jul 1, 2006		(in thousands)	Jun 30, 2007		Jul 1, 2006
Cash & Marketable Securities	$	82,700	$	34,504	Total Depr & Amortization	$	33,364	$	9,557
Trade Receivables – net		279,669		128,335	Cash Flow from Operations		111,766		13,510
Inventories		327,687		118,489	Capital Expenditures		18,628		7,461
					Dividends		15,574		10,801
Total Assets		2,920,260		531,488
Total Debt		1,427,025		115,025
Shareholders’ Equity		780,248		296,738	Depr & Amortization for purchase accounting		9,599

		For more information contact
Date:	July 26, 2007	Baldor Electric Company P O Box 2400	Phone: Fax:	479-646-4711 479-648-5701
Subject:	Baldor Electric Company 2nd Quarter 2007 Results Discussion	Fort Smith, Arkansas 72902 John McFarland Ronald Tucker Tracy Long	Website:	www.baldor.com Chairman & CEO President & COO VP Investor Relations
Page:	2 of 3

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

Q… How was business during the quarter?

Industrial motor sales (66% of revenue) were up 10%, power transmission products (25% of revenue) were up 3%, drives sales (6% of revenue) were down 4%, and generator sales (3% of revenue) were up 16%. These growth rates include comparable second quarter 2006 Dodge and Reliance sales. Our motor business continues to provide a significant portion of our business growth. The strongest sales increases were seen in Super-E^® premium-efficient motors, farm duty motors and pump motors. We expect this good growth to continue.

Q… Is this quarter’s operating margin of 14% sustainable?

Yes. We believe implementing best practices in manufacturing, purchasing, engineering, and sales and administration over the next three years will allow us to not only sustain this margin but improve it.

Q… How are raw material costs affecting you?

While we have many strategies to control our cost, raw material costs continue to show an upward trend. We closely monitor material prices and will implement further price increases if necessary.

Q… How much debt have you repaid?

We are pleased with the strong cash flow we generated in the first half of the year which, along with proceeds from stock and asset sales, allowed us to meet our 2007 debt reduction goal of $125 million by the end of June. As a result, our revised goal is to reduce debt by an additional $50 million by the end of 2007.

Q… Why did you sell the motor repair business?

During the quarter, we sold the Reliance electric motor repair business for approximately $50 million. The sale proceeds were used to reduce debt. We felt this business, which generated annual sales of approximately $75 million, competed with our existing customer base. No additional asset sales are expected.

Q… How is the integration of Baldor, Dodge and Reliance going?

The integration is going well, and synergies will become more apparent during the second half of the year. Some of the integration activities include:

*Purchasing – We continue to see opportunities to improve our material purchases, and we are working with our vendors to implement these as quickly as possible.

*Manufacturing – We consolidated production from two facilities into more profitable locations during the quarter. Costs for additional employees and training were incurred during the quarter as a result of these consolidations. These consolidations will be completed by the end of July.

		For more information contact
Date:	July 26, 2007	Baldor Electric Company P O Box 2400	Phone: Fax:	479-648-5701 479-646-4711
Subject:	Baldor Electric Company 2nd Quarter 2007 Results Discussion	Fort Smith, Arkansas 72902 John McFarland Ronald Tucker Tracy Long	Website:	www.baldor.com Chairman & CEO President & COO VP Investor Relations
Page:	3 of 3

Q… How is the integration of Baldor, Dodge and Reliance going (continued)?

*Sales Force – Effective October 1, 2007, we will have a dedicated sales force for Dodge power transmission products as well as a dedicated sales force for motors, drives and generators. We are confident the creation of a separate sales force for Dodge will improve sales growth in the future.

*Information Systems Consolidation – We plan to consolidate our information systems onto a single platform over the next three years. Operating on one platform will result in higher productivity, lower hardware and software costs and more timely and accurate information for our customers on a global basis.

Q … When will your next update be?

We will hold a conference call on Friday, July 27, 2007 at 10:00 a.m. central time. Participants may listen to the discussion through the Company’s website at www.baldor.com or by calling 888-202-2422. A replay will be available through August 4, 2007 and can be accessed by calling 888-203-1112 (passcode 3022394).

We will also participate in the AG Edwards Emerging Growth Conference on September 19, 2007, in New York.

This document contains statements that are forward-looking, i.e. not historical facts. The forward-looking statements contained in this document (including “estimate”, “believe”, “will”, “intend”, “expect”, “may”, “could”, “future”, “susceptible”, “unforeseen”, anticipate”, “would”, “subject to”, “depend”, uncertainties”, “predict”, “can”, “expectations”, “if”, “unpredictable”, “unknown”, “pending”, “assumes”, “continued”, “ongoing”, “assumption” or any grammatical forms of these words or other similar words) 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.