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Baldor Electric Company markets, designs, and manufactures industrial electric motors, drives, and generators. It has recently been announced that ABB will be acquiring Baldor in an all cash deal of 4.2 billion USD (1.1 Billion $ Debt included)
Four Baldor Electric Co. employees were honored Thursday in recognition of their support for employees who serve in the 188th Fighter Wing.
The Arkansas Committee for Employer Support of the Guard and Reserve (ESGR), an agency of the Department of Defense, presented the Patriot Award to Lynn Harris, Keith Lovell, Hal Scifres and John Weaver.
ESGR created the Patriot Award “to publicly recognize individuals who provide outstanding public support and cooperation to their employees, who like the citizen warriors before them, have answered their nation’s call to serve,” Jon Woodham, ESGR Arkansas employer relations specialist, stated in a news release. “... Supportive supervisors are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units.”
Baldor employees Clovis "Bud" Bynum, Billy Thornburg and Aaron Ruckman, who are also Guardsmen, nominated the four for the honor.
Bynum nominated Scifres and Harris, saying both “have been very supportive of my involvement with the Air National Guard. ... They see that my military professionalism and (striving) for excellence carry over with me to my responsibilities at Baldor, making me a valuable asset to the company.”
Thornburg nominated Lovell, noting that Lovell “had words of praise and advice to ‘get home safe’ when I was about to deploy to Afghanistan.”
Ruckman nominated Weaver, noting that Weaver is interested in Ruckman’s Arkansas Air National Guard career and supports his role “wholeheartedly.”
With about 300 employees on hand, Woodham presented the awards Thursday. Col. Tom Anderson, commander of the 188th Fighter Wing, and Baldor plant manager Chris Hoyle assisted in the presentation.
Baldor Electric Company (“Baldor” or the “Company”) is a leading manufacturer of industrial electric motors, drives, and generators, currently supplying over 8,000 customers in more than 160 industries. We sell our products to original equipment manufacturers and distributors serving markets in the United States and throughout the world. We focus on providing customers with value through a combination of quality products and customer service, as well as short lead times and attractive total cost of ownership, which takes into account initial product cost, product life, maintenance costs and energy consumption. We estimate that the initial purchase price and lifetime maintenance costs of a typical electric motor represent approximately 2% of the cost of the electricity consumed by a motor run continuously over its lifetime. We believe that due to high energy prices, our customers increasingly base their purchasing decisions on the energy efficiency of our motors and other products, rather than on the price alone. Over the past 15 years, our revenue has grown at a 6.4% compounded annual growth rate. We have achieved most of this growth organically through product innovation, increased market share and expansion into new markets.

Our Competitive Strengths

We believe that we are well positioned in the markets in which we compete based on the following competitive strengths, which will be enhanced by our acquisition of the Acquired Business:



Excellent reputation and strong brand name preference.

The Baldor, Reliance, Reliance Electric and Dodge brand names are associated with high-quality innovative products, engineering expertise, excellent customer service, and an overall leadership position in the industry. Baldor, Reliance Electric and Dodge were founded in 1920, 1904 and 1878, respectively. Baldor was the preferred brand in 19 of 21 independent surveys of industrial electric motor users conducted over the past five years.



Emphasis on providing our customers the highest value.

We provide value to our customers by offering a broad range of high quality products, short lead times on custom products, quick delivery for stock products and local customer service and support. We also offer the capability to design and manufacture custom products that address the requirements of our customers. We believe we are well positioned relative to many of our competitors who emphasize low price.



Diversified customer base and end markets.

In the year ended December 31, 2005, our products and those of the Acquired Business were sold to more than 4,000 OEMs and 5,000 distributors across a wide variety of end markets. On average, Baldor’s top 20 customers in the fiscal year 2006 have been doing business with us for 22 years. For the fiscal year ended 2006, approximately half of our sales were to OEMs and half were to distributors. For the year ended September 30, 2006, approximately 52% of Power Systems’ domestic revenues were generated through distributors. We believe that the different purchasing patterns among our customers in the various end markets we serve allow us to reduce the overall sensitivity of demand for our products due to changes in the economy. Also, we believe our large installed base and specification of our products by leading OEMs as original equipment creates significant replacement demand.

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Robust product development.

For over 86 years, Baldor has introduced many innovative products, including our Super-E branded line of premium energy efficient motors. We estimate that the initial purchase price and lifetime maintenance costs of a typical electric motor represent approximately 2% of the cost of the electricity consumed by a motor run continuously over its lifetime. For example, the energy cost of a typical 100 horsepower motor run continuously can exceed $25,000 annually. In addition, our recently developed H2 inverter drive has been designed to be the most reliable, easy to use, and efficient drive available in the market. Dodge products are also recognized for innovation. For example, customers are able to configure Dodge bearings with (i) a Grip Tite feature that allows it to be easily attached to standard sized shafts, (ii) an EZ-KLEEN feature that seals the bearing in order to allow a wash-down of the application, and (iii) an air-handling bearing that provides quiet, high-speed operation.



Committed and motivated workforce.

Our employees are highly motivated and productive. Our shared values, commitment to education and training, retention practices and the ability to participate in equity ownership through profit sharing, stock options and 401(k) plans help us keep motivated and productive employees. We are committed to an operating environment that is conducive to operational excellence and invest regularly to make sure our plants are modern, clean and safe for our employees. We believe the Acquired Business has a similar operating philosophy.
We maintain good communications with our
employees and co-workers, always having an “open
door” to address issues, concerns and problems.
While we may not always agree with the decisions
made, we should agree to support the final decision
made by management, as long as it is ethical and
supports our corporate goals. That is what working
as a team is.
Any Baldor Employee and any Baldor District
Manager has the right to appeal any decision
he or she disagrees with, without any negative
repercussion.

This policy offers guidelines for the effective, efficient, ethical and lawful use of Baldor’s Electronic Media. The policy is
necessary to: improve the productivity of each employee; protect the integrity of customer data; prevent harassment and
other forms of malicious behavior, and to protect shareholder investment.
These policies are to be observed by EVERY Baldor employee. The following guidelines regarding the use of Baldor’s
Electronic Media are effective immediately:
Baldor’s Electronic Media is intended to be used for business purposes. Use for informal or personal purposes is
permissible only within reasonable limits and consistent with this policy.
“Electronic Media” includes laptop and desktop personal computers, printers, software, electronic messages (e-mail),
internet, intranet, data, physical network and servers, telephones, company calling cards, voice mail, fax machines, copy
machines, televisions, VCRs, and video conferencing equipment. Employees have no right or expectation of privacy in
Electronic Media or the information composed or stored on, received by, or transmitted from Electronic Media, either
during or subsequent to employment with Baldor.
All information composed on, received by, and/or transmitted from any Baldor Electronic Media remains the property of
Baldor Electric Company.
Only the Information Services department or persons acting at the direction of the Information Services department
are authorized to perform software installations on Baldor equipment. Unauthorized copying of licensed software is
considered theft and a violation of copyright laws. Placing unlawful information on any Baldor Electronic Media is
prohibited.
Other activities specifically prohibited are:
1. Using recreational software on any Baldor Electronic Media. Recreational software includes games like solitaire and
mine sweeper that are normally included in Microsoft Windows operating system software;
2. Developing, transmitting, or re-transmitting any computer software, program or routine that is or acts like a virus or
is virus-like;
3. Viewing, developing, transmitting, or re-transmitting any data (including websites, electronic messages, instant
messaging, voice mail or blogging) containing text, image, movie, or sound that contains pornography, profanity,
obscenity, or language that is offensive, libelous, or defamatory, or tends to intimidate, degrade, or harass others,
including but not limited to customers, vendors and other employees;
4. Using Baldor’s Electronic Media to solicit for personal or non-Company related ventures or monetary gain, religious/
political causes, outside organizations or other non-Company business;
5. Subscriptions to electronic message services that are non-business related;
6. Devising or executing any scheme to solicit, defraud, or extort money, property, or services;
7. Using or attempting to use another employee’s user ID;
8. Using web logs, or BLOGS, on company time.
9. Posting information on a public website or BLOG: (1) that purports to speak for Baldor without the authority to do
so, (2) that disparages Baldor, its products or its personnel, or (3) that harasses or otherwise injures a Baldor
employee, customer or vendor. Any violation of the prohibitions enumerated in this sub-section shall be considered
a violation of this policy even if Baldor Electronic Media is not utilized.
10. Disseminating electronic data to any person(s) who do not have a legitimate business need for same. If you
have a question as to whether any person(s) have such a need, consult your supervisor;
11. Excessive use of Baldor’s Electronic Media for personal purposes, or any use of Electronic Media that
conflicts or interferes with the Company’s operations;
 
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