Gates Industrial Corporation PLC

GTES

Equity

ISIN GB00BD9G2S12 / Valor 39920979

New York Stock Exchange, Inc (2024-12-26)

USD 21.02+0.91%

Gates Industrial Corporation PLC
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Gates Industrial Corporation PLC is a prominent global manufacturer specializing in power transmission and fluid power solutions tailored to specific applications across various industries and regions. The company's primary focus is on delivering top-notch, highly engineered components that play vital roles in challenging environments with regular replacement needs. With a significant portion of sales directed towards replacement markets and the remainder to original equipment manufacturers (OEMs), Gates Industrial Corporation PLC maintains a balanced revenue stream that helps mitigate economic fluctuations.

Summarized from source with an LLMView SourceSector: Business Services

Net Sales Decline

In the third quarter of 2024, Gates Industrial Corporation PLC reported net sales of $830.7 million, marking a 4.8% decrease compared to the same period in the previous year. This decline was primarily due to a 3.8% drop in core sales and a 1.0% negative impact from foreign currency fluctuations.

Net Income and Earnings Per Share

Gates Industrial Corporation PLC's net income attributable to shareholders for the third quarter of 2024 was $47.6 million, or $0.18 per diluted share. This represents a decrease from the prior-year quarter's net income of $78.7 million, or $0.29 per diluted share, driven by lower operating income and higher tax rates.

Adjusted EBITDA Performance

The company's Adjusted EBITDA for the third quarter of 2024 was $182.5 million, with a margin of 22.0%. This reflects a slight decrease from the previous year's Adjusted EBITDA of $189.4 million, although the margin improved by 30 basis points due to enterprise initiatives and favorable channel mix.

Segment Sales Analysis

In the Power Transmission segment, Gates Industrial Corporation PLC experienced a 4.3% decline in net sales to $513.4 million, while the Fluid Power segment saw a 5.7% decrease to $317.3 million. Both segments were affected by weaker demand in key industrial markets, particularly in Agriculture and Construction.

Updated Financial Guidance

Gates Industrial Corporation PLC has updated its full-year 2024 guidance, now expecting core sales growth to be between -4% and -3%. The company has also adjusted its expected Adjusted EPS to a range of $1.33 to $1.37, reflecting a slight increase from previous estimates.

Summarized from source with an LLMView Source

Key figures

56.3%1Y

36.2%3Y

52.9%5Y

Performance

28.6%1Y

31.7%3Y

39.9%5Y

Volatility