UPDATE 1-Baldor Electric Q2 profit beats Wall Street

(Recasts; adds details, share movement)

July 24 (Reuters) - Baldor Electric Co (BEZ.N) reported better-than-expected second-quarter earnings as it increased prices across its entire product line to combat higher material costs.

The company, which makes electric motors, power transmission products, drives and generators, reported net income of $29.4 million, or 63 cents a share, compared with $25.2 million, or 54 cents a share, a year earlier.

Revenue rose 3 percent to $504 million for the quarter ended June 28.

Analysts on average were expecting earnings of 61 cents a share, excluding items, on revenue of $499.5 million.

The company expects sales to increase at a mid-single digit rate during the balance of the year compared to the same period a year earlier.

Shares of the Fort Smith, Arkansas-based company closed down 6.4 percent at $36.90 Thursday on the New York Stock Exchange.

Baldor Electric, which sells its products to distributors and original equipment manufacturers, competes with companies like Emerson Electric Co (EMR.N) and Rockwell Automation (ROK.N). (Reporting by Biswarup Gooptu in Bangalore; Editing by Pratish Narayanan)