HVAC Market Weakness and R22 Conversion Impact

Regal Beloit reported a 30.2% decline in North American residential HVAC motor net sales, driven by lower consumer demand and the adverse mix impact of the R22 dry ship conversion. The company expects continued negative mix impact from the R22 conversion in the second quarter.

“North American residential HVAC motor net sales declined 30.2%, resulting from (i) the difficult comparison to the 17.9% net sales increase experienced in the first quarter of 2011, (ii) a drop in consumer demand for residential HVAC equipment and (iii) the adverse mix impact of the R22 dry ship conversion.”

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