Power Transmission Sales Continue Ascent

Chicago, Ill. -- Both Canadian and U.S. industrial distributors saw growth in power transmission/motion control products during October 2007, according to the latest Power Transmission Distributors Association (PTDA) trend data for distributors and manufacturers of PT/MC products. Canadian distributors' year-to-date sales of PT/MC products climbed 9.0% as compared to sales for January through October 2005. Sales increased 1.4% over the previous month and grew 13.7% as compared to October 2005. Days sales in accounts receivables were down 0.2% from September 2006 and decreased 3.3% as compared to the same month last year. Annualized sales to inventory ratio in October was 7.5, compared to 7.2 in 2005. For October, the confidence level of Canadian distributors remained flat at 6.0 on a 10-point scale. In October, U.S. distributors' year-to-date sales of PT/MC products rose 11.0% as compared to sales for January through October 2005. Sales fell 2.0% over the previous month and were up 12.0% as compared to October 2005. Days sales in accounts receivables decreased 0.2% as compared to September 2006 and dropped 5.6% as compared to the same month last year. Annualized sales to inventory ratio in October was 9.0, compared to 8.2 in 2005. For October, the confidence level of U.S. distributors remained flat at 6.3 on a 10- point scale. Canadian manufacturers' year-to-date sales of PT/MC products gained 1.4% as compared to sales for January through October in 2005. Sales rose 2.3% over the previous month and climbed 9.2% as compared to October 2005. As compared to September, sales of unmounted bearings, standard industrial motors, gear products, clutches and brakes increased. Mounted bearings, variable speed drives, positioning systems/linear motion products, mechanical drive systems and other PT products, and shaft couplings decreased. Annualized sales to inventory ratio in October was 7.3, compared to 6.9 in October 2005. For October, the confidence level of Canadian manufacturers increased to 5.2 from 5.1 in September on a 10-point scale. In October, U.S. manufacturers' year-to-date sales of PT/MC products rose 8.7% as compared to sales for January through October 2005. Sales gained 4.1% over the previous month and climbed 10.9% as compared to October 2005. As compared to September, sales of unmounted bearings, standard industrial motors, variable speed drives, positioning systems/linear motion products, and gear products increased. Sales of mounted bearings, mechanical drive systems and other PT products, clutches and brakes, and shaft couplings decreased. Year-to-date orders of PT/MC products from U.S. manufacturers were up 5.5% as compared to the same period in 2005. October orders increased 3.2% from September, and grew 6.8% as compared to October 2005. Annualized sales to inventory ratio in October was 10.7, compared to 11.1 in 2005. For October, the confidence level of U.S. manufacturers decreased to 5.4 from 5.6 in September on a 10-point scale. The Market Outlook Report is published monthly by the PTDA. The report is available by annual subscription via e-mail or mail by contacting 312-516-2100 or may be ordered online at www.ptda.org/store. A U.S.-based trade association, PTDA represents 216 power transmission/motion control distributor firms with over 3,500 locations throughout North America and 11 other countries, as well as 200 manufacturers that supply the PT/MC industry.