RBC Bearings Incorporated Receives Payments Under The U.S. Continued Dumping And Subsidy Offset Act (CDSOA)
RBC Bearings Incorporated (Nasdaq: ROLL), a leading international
manufacturer of highly-engineered precision plain, roller and ball
bearings for the industrial, defense and aerospace industries, today
RBC Bearings Incorporated (Nasdaq: ROLL), a leading international manufacturer of highly-engineered precision plain, roller and ball bearings for the industrial, defense and aerospace industries, today announced that it has received approximately $3.6 million in distribution payments under the U.S. Continued Dumping and Subsidy Offset Act (CDSOA) relating to claims filed by the Company during the past six years. The CDSOA provides for distribution of monies collected by U.S. Customs and Border Protection (“Customs”) for imports covered by antidumping duty orders entering the United States through September 30, 2007 to eligible domestic producers, including the Company, that supported a successful antidumping petition (“Supporting Producers”) including ball bearings imported from the United Kingdom, France, Germany, Italy, Singapore and Japan. Antidumping duties for merchandise entering the U.S. after September 30, 2007 are retained by the U.S. Treasury and not distributed. As a result of recent rulings by the Federal Circuit and the United States Court of International Trade of actions filed by certain manufacturers who did not support the antidumping petition and challenged the CDSOA’s “support requirement”, a portion of the distributions held back pending resolution (the “Holdback”) has been released to the Supporting Producers. As a result, the Company subsequently received CDSOA distribution payments of approximately $3.6 million on or about April 25, 2012, based on the Company’s allocation of the CDSOA funds distributed in each of the past six years. If the Federal Circuit were to reverse the decisions of the Court of International Trade and to determine that the Non-Supporting Producers were entitled to CDSOA distributions, it is possible that Customs may seek to have the Company return all or a portion of its share of the Holdback. Based on what is known today, the Company believes that this possibility is remote. The entire $3.6 million in distribution payments will be recorded in the first quarter of fiscal 2013.
Bank of America upgraded RBC Bearings (ROLL) to "buy" from "neutral" and set a $75 target price. The firm noted aerospace and defense demand remains strong and the worst of the industrial business is likely already behind the company.