Regal Beloit Warrenty Expense

Regal Beloit Corporation (NYSE: RBC) just announced that it has detected a production flaw in certain standard motors produced in one of its facilities during a limited period in 2011.   which has been corrected, could lead to early bearing failure in certain motors and does not present a safety concern.  These motors are used in outdoor condensing units for air conditioners and heat pumps. The Company believes that approximately 50,000 motors may be flawed, representing less than 1% of the Company's total motor production during the period.   
Currently, the Company estimates increased warranty costs of $28 million.  This expense has been accrued in the second quarter operating results. so the Company's second quarter 2011 results will not meet its earlier guidance of $1.22 to $1.28 diluted earnings per share.
Regal Beloit Corporation is a leading manufacturer of electric motors machinery, mechanical and electrical motion controls and power generation products serving markets throughout the world.