REGAL REXNORD CORP
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
RRX$169.07+5.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-07.
0000082811-24-000088
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0000082811-24-000163
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 60 previous paragraphs and 68 current paragraphs.
38 unchanged; 16 reworded; 12 added; 6 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 5 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
(1) Results for the Industrial Systems segment covers results through the close of the sale on April 30, 2024.
Current report
Net sales decreased $221.0 million or 12.5% for the second quarter of 2024 compared to the second quarter of 2023. The decrease consisted of an organic sales decline of 6.9% and a negative foreign currency translation impact of 0.6%. In addition, the $221.0 million decrease includes an impact worth $94.9 million related to the sale of the industrial motors and generators businesses, which closed on April 30, 2024. The organic sales decline was driven by a decrease of $19.6 million within IPS, $46.7 million within PES, $47.3 million within AMC and $2.3 million within Industrial Systems during its one month of ownership in the second quarter. Gross profit increased $7.2 million or 1.3% for the second quarter of 2024 as compared to the second quarter of 2023 primarily driven by an increase in gross profit of $46.1 million within IPS, partially offset by a decrease of $19.3 million due to the divestiture of the industrial motors and generators businesses and decreases at AMC and PES. The gross profit increase of $7.2 million includes the absence of $44.1 million of acquisition-related inventory step-up amortization at IPS and AMC in the second quarter of 2024. Total operating expenses for the second quarter of 2024 decreased $35.1 million or 8.5% as compared to the second quarter of 2023 primarily driven by a reduction of $16.3 million from the divestiture of the industrial motors and generators businesses and a $17.2 million gain on sale of those businesses.
Current report
IPS net sales for the second quarter of 2024 were $675.5 million, a decrease of $23.2 million or 3.3% as compared to the second quarter of 2023. The decrease consisted of an organic sales decline of 2.8% and a negative foreign currency translation impact of 0.5%. The decrease in organic sales was primarily driven by lower sales volumes due to weakness in the agriculture, construction equipment and general industrial markets. Gross profit increased $46.1 million or 20.5% as compared to the second quarter of 2023 primarily driven by the absence of $31.6 million of acquisition-related inventory step-up amortization in the second quarter of 2024 and acquisition-related cost synergies. Total operating expenses for the second quarter of 2024 are relatively consistent with the second quarter of 2023.
Current report
PES net sales for the second quarter of 2024 were $410.9 million, a decrease of $49.2 million or 10.7% as compared to the second quarter of 2023. The decrease consisted of an organic sales decline of 10.1% and a negative foreign currency translation impact of 0.5%. The decrease in organic sales was primarily driven by $40.1 million from lower sales volumes due to weakness in North America residential HVAC markets and commercial HVAC markets in Europe and Asia. Gross profit decreased $12.6 million or 9.4% as compared to the second quarter of 2023 primarily driven by lower volumes partially offset by lower restructuring costs. Total operating expenses for the second quarter of 2024 are relatively consistent with the second quarter of 2023.
Current report
AMC net sales were $422.2 million, a decrease of $50.9 million or 10.8% as compared to the second quarter of 2023. The decrease consisted of an organic sales decline of 10.0% and a negative foreign currency translation impact of 0.8%. The decrease in organic sales was primarily driven by $53.4 million from lower sales volumes due to weakness in discrete factory automation, partially offset by strength in the aerospace, data center and medical markets. Gross profit decreased $7.0 million or 4.0% compared to the second quarter of 2023 primarily driven by the decline in sales, partially offset by the absence of $12.5 million of acquisition-related inventory step-up amortization in the second quarter of 2024, and acquisition-related cost synergies. Total operating expenses for the second quarter of 2024 are relatively consistent with the second quarter of 2023.
Current report
On April 30, 2024, the Company completed the sale of its industrial motors and generators businesses, which represented the substantial majority of the Industrial Systems segment, and recognized a $17.2 million gain on the sale during the second quarter of 2024. The changes in Industrial Systems' sales, gross profit and other operating expenses were primarily driven by the timing of the sale.
Current report
Net sales increased $102.6 million or 3.4% for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase consisted of acquisition growth of 14.8%, partially offset by an organic sales decline of 8.1% and a negative foreign currency translation impact of 0.4%. In addition, the $102.6 million increase reflects a negative impact of $94.9 million related to the sale of the industrial motors and generators businesses, which closed on April 30, 2024. The acquisition growth increase of $442.5 million was due to the acquisition of Altra. The organic sales decline was due to lower organic sales of $33.7 million within IPS, $130.2 million within PES, $50.4 million within AMC, and $19.6 million within Industrial Systems. Gross profit increased $162.2 million or 16.9% for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 primarily driven by $175.2 million from the acquisition of Altra, the absence of $44.1 million of acquisition-related inventory step-up amortization at IPS and AMC in 2024, and acquisition-related cost synergies, partially offset by a $31.0 million decrease within PES and a decrease of $19.3 million due to the divestiture of the industrial motors and generated business. Total operating expenses for the six months ended June 30, 2024 increased $54.9 million or 7.4% as compared to the six months ended June 30, 2023 primarily driven by $122.0 million from the acquisition of Altra and a $4.3 million loss on sale of businesses, partially offset by a decrease in transaction and integration costs of $65.4 million and a decrease of $16.3 million in operating expenses driven by the divestiture of the industrial motors and generators businesses.
Current report
IPS net sales for the six months ended June 30, 2024 were $1,318.9 million, an increase of $205.8 million or 18.5% as compared to the six months ended June 30, 2023. The increase consisted of acquisition growth of 21.8%, offset by an organic sales decline of 3.0% and a negative foreign currency translation impact of 0.3%. The acquisition growth of by $243.2 million was due to the acquisition of Altra. The $33.7 million decrease in organic sales was driven by lower sales volumes due to weakness in the construction equipment, alternative energy, and agriculture markets. Gross profit increased $133.5 million or 33.2% as compared to the six months ended June 30, 2023 primarily driven by $92.4 million from the acquisition of Altra, acquisition-related cost synergies, and the absence of $31.6 million of acquisition-related inventory step-up amortization in 2024. Total operating expenses for the six months ended June 30, 2024 increased $27.7 million or 8.3% as compared to the six months ended June 30, 2023 primarily due to $60.0 million from the acquisition of Altra, partially offset by a decrease of $41.2 million of transaction and integration costs.
Current report
PES net sales for the six months ended June 30, 2024 were $796.2 million, a decrease of $133.4 million or 14.4% as compared to the six months ended June 30, 2023. The decrease primarily consisted of an organic sales decline of 14.0% and a negative foreign currency translation impact of 0.3%. The decrease in organic sales was primarily due to lower sales volumes due to weakness in North American residential HVAC markets as well as the European and Asian commercial HVAC markets. Gross profit decreased $31.0 million or 12.3% as compared to the six months ended June 30, 2023 primarily driven by lower sales volumes partially offset by management's control over discretionary spending and lower freight costs. Total operating expenses for the six months ended June 30, 2024 are relatively consistent with the six months ended June 30, 2023.
Current report
AMC net sales were $822.4 million, an increase of $146.1 million or 21.6% as compared to the six months ended June 30, 2023. The increase consisted of acquisition growth of 29.5%, offset by an organic sales decline of 7.5% and a negative foreign currency translation impact of 0.4%. The acquisition growth of $199.3 million was due to the acquisition of Altra. The $50.4 million decrease in organic sales was primarily driven by lower volumes due to weakness in discrete factory automation, partially offset by strength in the aerospace, data center and medical markets. Gross profit increased $77.5 million or 30.8% compared to the six months ended June 30, 2023 primarily driven by $82.8 million from the acquisition of Altra, the absence of $12.5 million of acquisition-related inventory step-up amortization in 2024 and acquisition-related cost synergies, partially offset by the decline in organic sales. Total operating expenses for the six months ended June 30, 2024 increased $38.9 million as compared to the six months ended June 30, 2023 primarily due to $62.0 million from the acquisition of Altra, partially offset by a decrease of $25.2 million of transaction and integration costs.
Current report
On April 30, 2024, the Company completed the sale of its industrial motors and generators businesses, which represented the substantial majority of the Industrial Systems segment, and recognized a $4.3 million loss on the sale during the six months ended June 30, 2024. The changes in Industrial Systems' sales, gross profit and other operating expenses were primarily driven by the timing of the sale.
Current report
The effective tax rate for the six months ended June 30, 2024 was 34.9% versus 44.5% for the six months ended June 30, 2023 due to lower non-deductible transaction related expenses from the Altra acquisition, partially offset by the impact of the sale of the industrial motors and generators businesses.
Removed paragraphs (6)
Previous report
•The Industrial Systems segment designs and produces integral motors and alternators for industrial applications, along with aftermarket parts and kits to support such products. These products primarily serve the general industrial, metals and mining, and food and beverage end markets.
Previous report
Net sales increased $323.6 million or 26.4% for the first quarter 2024 compared to the first quarter 2023. The increase consisted of acquisition growth of 36.1%, partially offset by an organic sales decline of 9.6% and negative foreign currency translation of 0.1%. The acquisition-related growth was driven by $442.5 million from the acquisition of Altra, and the negative organic sales was driven by lower net sales of $84.2 million within the Power Efficiency Solutions segment and $18.2 million within the Industrial Systems segment. Gross profit increased $155.0 million or 38.9% for the first quarter 2024 as compared to the first quarter 2023. The increase from the prior year was primarily driven by $175.2 million from the acquisition of Altra, along with acquisition related cost synergies, partially offset by a decrease of $17.3 million within the Power Efficiency Solutions segment. Operating expenses for the first quarter 2024 increased $90.0 million or 27.3% as compared to the first quarter 2023. The increase was primarily driven by a $122.0 million increase related to the acquisition of Altra and a loss on assets held for sale of $21.5 million related to the sale of the industrial motors and generators business, partially offset by a decrease in transaction and integration costs of $60.5 million.
Previous report
Industrial Powertrain Solutions segment net sales for the first quarter 2024 were $643.4 million, an increase of $229.0 million or 55.3% as compared to the first quarter 2023. The increase consisted of acquisition growth of 58.7%, offset by an organic sales decline of 3.4%. The acquisition-related growth was driven by $243.2 million from the acquisition of Altra. Gross profit increased $87.4 million or 49.3% as compared to the first quarter 2023. The increased gross profit was driven by $92.4 million from the acquisition of Altra, along with acquisition related cost synergies, partially offset by an increase in restructuring expenses. Operating expenses for the first quarter 2024 were $182.7 million compared to $151.5 million in the first quarter 2023. The $31.2 million or 20.6% increase was primarily driven by a $60.0 million increase related to the acquisition of Altra, partially offset by a decrease in transaction and integration costs of $37.6 million.
Previous report
Power Efficiency Solutions segment net sales for the first quarter 2024 were $385.3 million, a decrease of $84.2 million or 17.9% as compared to the first quarter 2023. The decrease consisted of an organic sales decline of 17.8% and negative foreign currency translation of 0.1%. The decrease was primarily driven by lower volumes stemming from lower end market demand across all regions. Gross profit decreased $18.4 million or 15.6% as compared to the first quarter 2023. The decrease in gross profit was primarily driven by a decrease of $21.6 million related to lower volumes partially offset by management's control over discretionary spending and lower freight costs. Operating expenses for the first quarter 2024 and 2023 were $70.8 million and $72.3 million, respectively. The decrease in operating expenses was primarily driven by various cost reduction measures.
Previous report
Automation & Motion Control segment net sales were $400.2 million, an increase of $197.0 million or 96.9% as compared to the first quarter 2023. The increase consisted of acquisition growth of 98.1% and positive foreign currency translation of 0.5%, partially offset by an organic sales decline of 1.5%. The acquisition growth was driven by $199.3 million from the acquisition of Altra. Gross profit increased $84.5 million or 112.1% compared to the first quarter 2023. The increase in gross profit was driven by an increase of $82.8 million from the acquisition of Altra, along with acquisition related cost synergies. Operating expenses for the first quarter 2024 were $119.7 million compared to $80.6 million in the first quarter 2023. The increase was primarily driven by a $62.0 million increase related to the acquisition of Altra, offset by a decrease in transaction and integration costs of $23.2 million.
Previous report
Industrial Systems segment net sales for the first quarter 2024 were $118.8 million, a decrease of $18.2 million or 13.3% compared to first quarter 2023 net sales. The decrease consisted of an organic sales decline of 12.6% and negative foreign currency translation of 0.7%. The organic sales decline was primarily driven by softer North American motors demand, partially offset by strength in generators demand. Gross profit for the first quarter 2024 increased $1.5 million or 5.4%. The increase was driven by improvements in material and manufacturing costs, partially offset by lower volumes. Operating expenses for the first quarter 2024 increased $21.2 million as compared to the first quarter 2023, primarily due to a loss on assets held for sale of $21.5 million related to the sale of the industrial motors and generators business.
Reworded paragraphs (16)
Previous wording
As of March 31, 2024, our company is comprised of four operating segments: Industrial Powertrain Solutions ("IPS"), Power Efficiency Solutions ("PES"), Automation & Motion Control ("AMC") and Industrial Systems.
Current wording
As of June 30, 2024, our company is comprised of three operating segments: Industrial Powertrain Solutions ("IPS"), Power Efficiency Solutions ("PES") and Automation & Motion Control ("AMC").
Previous wording
A description of our four operating segments is as follows:
Current wording
A description of our three operating segments is as follows:
Previous wording
•The AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, high-efficiency miniature servo motors, controls, drives and linear actuators, as well as power management products that include automatic transfer switches and paralleling switchgear. The segment sells into markets that include industrial automation, robotics, food and beverage, aerospace, medical, agricultural and construction, general industrial, data center, and other markets.
Current wording
•The AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, high-efficiency miniature servo motors, controls, drives and linear actuators, as well as power management products that include automatic transfer switches and paralleling switchgear.
Previous wording
On September 23, 2023, we signed an agreement to sell our industrial motors and generators businesses which represent the substantial majority the Industrial Systems operating segment. The transaction closed on April 30, 2024 for a preliminary purchase price of $400 million, approximately 17% of which is deferred and will be paid upon the completion of the China Business transfer, as defined below. The total consideration remains subject to taxes, transaction expenses, working capital adjustments and customary post-closing adjustments. The Company anticipates that aggregate net proceeds will approximate $355 million. Due to administrative requirements, the transfer of the Chinese subsidiaries of the industrial motors and generators business, (the “China Business”) remains in progress and is expected to occur following completion of customary local filings and transfer documentation. The Company expects the deferred transfer of the China Business will occur in mid second quarter of 2024, at which time it anticipates it will receive the portion of the purchase price allocated to the China Business. The assets and liabilities related to these businesses are classified as Assets Held for Sale, Noncurrent Assets Held for Sale, Liabilities Held for Sale and Noncurrent Liabilities Held for Sale on the Company's Condensed Consolidated Balance Sheet as of March 31, 2024. The sale of the industrial motors and generators businesses does not represent a strategic shift that will have a major effect on our operations and financial results and, therefore, did not qualify for presentation as discontinued operations. See Note 3 - Held for Sale, Acquisitions and Divestitures of the Notes to the Condensed Consolidated Financial Statements for further information.
Current wording
On September 23, 2023, we signed an agreement to sell our industrial motors and generators businesses which represent the substantial majority the Industrial Systems operating segment. The transaction closed on April 30, 2024. See Note 3 - Held for Sale, Acquisitions and Divestitures of the Notes to the Condensed Consolidated Financial Statements for further information, as well as Note 6 - Segment Information of the Notes to the Condensed Consolidated Finance Statements for a description of the Company's operating segments.
Previous wording
Outside of general economic cyclicality, our business units experience different levels of variation in gross profit from quarter to quarter based on factors specific to each business. Generally our PES segment, IPS segment, AMC segment and Industrial Systems segment each have broad customer base and a variety of applications for their products, thereby helping to mitigate large quarter-to-quarter fluctuations outside of general economic conditions. However, for example, a portion of our PES segment manufactures products that are used in air conditioning applications. As a result, our sales for that business may be lower in the first and fourth quarters and higher in the second and third quarters.
Current wording
Outside of general economic cyclicality, our business units experience different levels of variation in gross profit from quarter to quarter based on factors specific to each business. Generally, our segments each have broad customer base and a variety of applications for their products, thereby helping to mitigate large quarter-to-quarter fluctuations outside of general economic conditions. However, for example, a portion of our PES segment manufactures products that are used in air conditioning applications. As a result, our sales for that business may be lower in the first and fourth quarters and higher in the second and third quarters.
Previous wording
The Company has updated its annual guidance for diluted earnings per share to a range of $3.97 to $4.77. The change reflects impacts tied to closing the sale of the industrial motors and generators businesses.
Current wording
The Company has updated its annual guidance for diluted earnings per share to a range of $3.70 to $4.10. The change reflects a more measured recovery in discrete factory automation markets, weaker mix in PES motors, and modestly higher interest costs.
Previous wording
The effective tax rate for the three months ended March 31, 2024 was 34.8% versus 180.9% for the three months ended March 31, 2023. The effective tax rate for the three months ended March 31, 2024 was lower than the same period in the prior year primarily driven by non-deductible transaction costs associated with the Altra transaction incurred in the prior year.
Current wording
The effective tax rate for the three months ended June 30, 2024 was 35.0% versus 22.9% for the three months ended June 30, 2023 due to the sale of the industrial motors and generators businesses.
Previous wording
Cash flow provided by operating activities was $83.1 million for the three months ended March 31, 2024, a $23.1 million decrease from the three months ended March 31, 2023. This decrease was driven primarily by lower cash generated by working capital.
Current wording
Cash flow provided by operating activities was $241.4 million for the six months ended June 30, 2024, a $85.9 million decrease from the six months ended June 30, 2023. This decrease was driven primarily by lower cash generated by working capital.
Previous wording
Cash flow used in investing activities was $17.5 million for the three months ended March 31, 2024 as compared to cash flow used in investing activities of $4,865.5 million for the three months ended March 31, 2023. The decrease was driven by the use of $4,852.9 of cash to acquire Altra during the prior year period.
Current wording
Cash flow provided by investing activities was $325.2 million for the six months ended June 30, 2024 as compared to cash flow used in investing activities of $4,927.6 million for the six months ended June 30, 2023. The change was driven by the use of $4,870.2 of cash to acquire Altra during the prior year period and $374.8 million in proceeds received from the sale of the industrial motors and generators businesses in the current year.
Previous wording
In the remainder of 2024, we anticipate capital spending for property, plant and equipment to be approximately $132 million. We believe that our present manufacturing facilities will be sufficient to provide adequate capacity for our operations for the remainder of 2024. We anticipate funding remaining 2024 capital spending with operating cash flows.
Current wording
In fiscal 2024, we anticipate capital spending for property, plant and equipment to be approximately $140 million. We believe that our present manufacturing facilities will be sufficient to provide adequate capacity for our operations for the remainder of 2024. We anticipate funding remaining 2024 capital spending with operating cash flows.
Previous wording
Cash flow used in financing activities was $168.0 million for the three months ended March 31, 2024, compared to $5,203.6 million provided by financing activities for the three months ended March 31, 2023. We had net debt payments of $137.5 million during the three months ended March 31, 2024, compared to net debt borrowings of $5,284.1 million during the three months ended March 31, 2023. The net debt payments in the current year primarily resulted from payments of $60.0 million on the term loan and $71.7 million net repayments made on the revolver during the three months ended March 31, 2024. The net debt borrowings in the prior year were primarily the result of the $4.7 billion of Senior Notes issued in January 2023 and $840.0 million upsize of the unsecured term loan facility in March 2023, partially offset by the repayment of the $500.0 million of Private Placement Notes in January 2023. There were no share repurchases for the three months ended March 31, 2024 and March 31, 2023. There were $23.3 million of dividends paid for the three months ended March 31, 2024, compared to $23.2 million of dividends paid in the prior year. There were no financing fees paid in the three months ended March 31, 2024, compared to $50.0 million of fees paid in the prior year.
Current wording
Cash flow used in financing activities was $672.5 million for the six months ended June 30, 2024, compared to $4,565.1 million provided by financing activities for the six months ended June 30, 2023. We had net debt payments of $618.4 million during the six months ended June 30, 2024, compared to net debt borrowings of $4,678.7 million during the six months ended June 30, 2023. The net debt payments in the current year primarily resulted from payments of $187.5 million on the term loan, $356.8 million on the land term loan and $72.1 million net repayments made on the revolver during the six months ended June 30, 2024. The net debt borrowings in the prior year were primarily the result of the $4.7 billion of Senior Notes issued in January 2023 and $840.0 million upsize of the unsecured term loan facility in March 2023, partially offset by the repayment of the $500.0 million of Private Placement Notes in January 2023 and $314.0 million net repayments on the revolver. There were no share repurchases for the six months ended June 30, 2024 and June 30, 2023. There were $46.6 million of dividends paid for the six months ended June 30, 2024, compared to $46.4 million of dividends paid in the prior year. There were no financing fees paid in the six months ended June 30, 2024, compared to $51.1 million of fees paid in the prior year.
Previous wording
Our working capital was $2,017.1 million (inclusive of assets and liabilities classified as held for sale) as of March 31, 2024, compared to $2,057.6 million as of December 31, 2023. As of March 31, 2024 and December 31, 2023, our current ratio (which is the ratio of our current assets to current liabilities) was 2.6:1. Our working capital decreased primarily as a result of lower cash on hand, due to the Company prioritizing debt reduction and using excess cash to do so.
Current wording
Our working capital was $1,775.0 million as of June 30, 2024, compared to $2,057.6 million as of December 31, 2023. As of June 30, 2024 and December 31, 2023, our current ratio (which is the ratio of our current assets to current liabilities) was 2.4:1. Our working capital decreased primarily as a result of lower cash on hand, due to the Company prioritizing debt reduction and using excess cash to do so.
Previous wording
As of March 31, 2024, $506.8 million of our cash, which includes cash in assets held for sale, was held by foreign subsidiaries and could be used in our domestic operations if necessary. We anticipate being able to support our liquidity and operating needs largely through cash generated from operations. We regularly assess our cash needs and the available sources to fund these needs which includes repatriation of foreign earnings which may be subject to withholding taxes. Under current law, we do not expect restrictions or taxes on repatriation of cash held outside of the United States to have a material effect on our overall liquidity, financial condition or the results of operations for the foreseeable future. As of March 31, 2024, we have repatriated approximately $140.8 million of foreign cash in 2024 to support the repayment of debt. We are continuing to evaluate opportunities to repatriate additional foreign cash in 2024.
Current wording
As of June 30, 2024, $492.8 million of our cash was held by foreign subsidiaries and could be used in our domestic operations if necessary. We anticipate being able to support our liquidity and operating needs largely through cash generated from operations. We regularly assess our cash needs and the available sources to fund these needs which includes repatriation of foreign earnings which may be subject to withholding taxes. Under current law, we do not expect restrictions or taxes on repatriation of cash held outside of the United States to have a material effect on our overall liquidity, financial condition or the results of operations for the foreseeable future. As of June 30, 2024, we have repatriated approximately $491.7 million of foreign cash in 2024 to support the repayment of debt. We are continuing to evaluate opportunities to repatriate additional foreign cash in 2024.
Previous wording
As of March 31, 2024, the Company had no standby letters of credit issued under the Multicurrency Revolver Facility, and $1,543.6 million of available borrowing capacity. For the three months ended March 31, 2024 and March 31, 2023 under the Multicurrency Revolving Facility, the average daily balance in borrowings was $98.5 million and $580.6 million, respectively, and the weighted average interest rate was 7.2% and 5.8%, respectively. The Company pays a non-use fee on the aggregate unused amount of the Multicurrency Revolving Facility at a rate determined by reference to its consolidated funded debt to consolidated EBITDA ratio.
Current wording
As of June 30, 2024, the Company had no standby letters of credit issued under the Multicurrency Revolver Facility, and $1,544.0 million of available borrowing capacity. For the three months ended June 30, 2024 and June 30, 2023 under the Multicurrency Revolving Facility, the average daily balance in borrowings was $67.4 million and $425.2 million, respectively, and the weighted average interest rate was 7.2% and 6.7%, respectively. For the six months ended June 30, 2024 and June 30, 2023 under the Multicurrency Revolving Facility, the average daily balance in borrowings was $83.0 million and $464.7 million, respectively, and the weighted average interest rate was 7.2% and 6.4%, respectively. The Company pays a non-use fee on the aggregate unused amount of the Multicurrency Revolving Facility at a rate determined by reference to its consolidated funded debt to consolidated EBITDA ratio.
Previous wording
The following table sets forth summarized balance sheet information of the Obligor Group as of March 31, 2024 and December 31, 2023, and includes balances of the industrial motors and generators businesses which are classified as held for sale in the Condensed Consolidated Balance Sheets:
Current wording
The following table sets forth summarized balance sheet information of the Obligor Group as of June 30, 2024 and December 31, 2023. The December 31, 2023 balance sheet information includes balances of the industrial motors and generators businesses which were classified as held for sale in the Condensed Consolidated Balance Sheet at that time:
Previous wording
The following table sets forth summarized income statement information of the Obligor Group for the three months ended March 31, 2024:
Current wording
The following table sets forth summarized income statement information of the Obligor Group for the six months ended June 30, 2024:
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The segment sells into markets that include industrial automation, robotics, food and beverage, aerospace, medical, agricultural and construction, general industrial, data center, and other markets.
Current report — wording carried from elsewhere
Six Months Ended June 30, 2024 Compared to June 30, 2023