RBC Bearings Incorporated (NYSE:RBC) Q3 2024 Earnings Call Transcript

Michael Hartnett: Well, I think it’s very encouraging. I don’t think that the margins on the Industrial side are going to do much better. Maybe they will. But others there’s not a major mechanism there that’s going to drive that that I can see. On the aircraft side there is a major mechanism in that as volume increases. We still haven’t gotten to 2019 level of absorption in our aircraft plants. So our aircraft margins are still trailing what we measured in 2019. So as the volume increases in most of the aircraft plants the volume is increasing and it’s increasing at a rate that as we talked about getting the labor and getting the materials and getting the planning straight and is challenging. So that is leading to better absorptions and better absorptions obviously lead to better margins. So we’ll see that mechanism improve our performance next year and in this quarter.

Peter Skibitski: Okay. Got it. And then just — Rob I just want to understand one thing. I think when you talk about Industrial in the third quarter I think you were talking about EBIT of around $42 million. And so I’m just trying to understand…

Robert Sullivan: Yes, I was talking gross margin. I was talking gross margin percentage. So 42.8%.

Peter Skibitski: Okay.

Robert Sullivan: Yes. 42.8%, Yes.

Peter Skibitski: Got it. Got it. Okay. Not a problem. Thanks, guys.

Robert Sullivan: Sure.

Operator: Ladies and gentlemen, there are no further questions at this time. And now I would like to turn the call back over to Dr. Hartnett for closing remarks.

Michael Hartnett: Okay. Well, I think, that completes our conference call for the third quarter. I appreciate everybody’s questions and participation. And we look forward to talking to you again in May. Good day.

Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.