February Power Transmission Sales Up 12%

In February, U.S. distributors' year-to-date sales of PT/MC products increased 3.8 percent as compared to sales for January through February 2003, according to the February trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products, compiled by the Power Transmission Distributors Association, Chicago, IL.

Sales climbed 11.9 percent over the previous month and grew 6.1 percent as compared to February 2003. Days sales in accounts receivables decreased 1.9 percent over January 2004 and were down 2.1 percent as compared to the same month last year. Annualized sales to inventory ratio in February was 8.3, compared to 8.1 in 2003.

For February, the confidence level of U.S. distributors rose to 5.8 on a 10-point scale.

Canadian distributors' year-to-date sales of PT/MC products gained 6.4 percent as compared to sales for January through February 2003. Sales were up 16.4 percent over the previous month and increased 9.6 percent as compared to February 2003.

Days sales in accounts receivables dropped 8.5 percent over January 2004 and fell 7.5 percent as compared to the same month last year. Annualized sales to inventory ratio in February was 82, compared to 7.8 in 2003.

For February, the confidence level of Canadian distributors rose to 6.3 on a 10-point scale.

In February, U.S. manufacturers' sales of PT/MC products gained 2.7 percent as compared to sales for January through February 2003. Sales climbed 13.0 percent over the previous month and grew 4.2 percent as compared to February 2003. As compared to January, sales of mounted bearings, unmounted bearings, standard industrial motors, variable speed drives, positioning systems/linear motion products, gear products, mechanical drives systems and other PT products, and shaft couplings increased. Sales of clutches and brakes decreased.

Year-to-date orders of PT/MC products from U.S. manufacturers were up 3.8 percent as compared to 2003. February orders rose 12.1 percent over January and grew 6.7 percent as compared to February 2003. Annualized sales to inventory ratio in February was 95, compared to 7.5 in 2003.

For December, the confidence level of U.S. manufacturers held steady at 5.5 on a 10-point scale.

Canadian manufacturers' sales of PT/MC products declined 0.5 percent as compared to sales for January through February in 2003. Sales climbed 6.4 percent over the previous month but were down 1.0 percent as compared to February 2003. As compared to January, sales of unmounted bearings, variable speed drives, gear products, mechanical drive systems and other PT products, clutches and brakes, and shaft couplings were up. Sales of mounted bearings decreased.

For February, the confidence level of Canadian manufacturers fell to 5.3 on a 10-point scale.

The Market Outlook Report is published monthly by the Power Transmission Distributors Association. The full report includes month-to-month and year-to-year changes in sales, inventory and accounts receivables data for U.S. and Canadian distributors, as well as a general confidence index. U.S. and Canadian manufacturer data includes a confidence index, as well as sales and order trends for mounted bearings, unmounted bearings, standard industrial motors, variable speed drives, gear products, mechanical drive systems and other PT products, clutches and breaks and shaft couplings.

Founded in 1960, PTDA is a U.S.-based trade association representing 230 power transmission/motion control distributor firms with 3,200 locations throughout North America and 14 other countries, as well as 190 manufacturers that supply the PT/MC industry. PTDA is a member-driven organization dedicated to advancing distribution and strengthening members to be successful, profitable and competitive in a changing market environment. More information at www.ptda.org.