PTDA Market Outlook Report Data June 2003

In June, U.S. distributors' year-to-date sales of PT/MC products increased 1.1 percent as compared to sales for January through June in 2002. Sales were up 3.8 percent over the previous month and gained 2.7 percent as compared to June 2002. Days sales in accounts receivables decreased 5.3 percent over May 2003 and fell 6.2 percent as compared to the same month last year. Annualized inventory turnover in June was 4.2 turns, compared to 4.1 turns in 2002.

For June, the confidence level of U.S. distributors rose to 5.0 on a 10-point scale.

Canadian distributors' year-to-date sales of PT/MC products increased 1.1 percent as compared to sales for January through June in 2002. Sales shrunk 5.3 percent over the previous month and were down 1.9 percent as compared to June 2002. Days sales in accounts receivables grew 3.7 percent over May 2002 and gained 3.5 percent as compared to the same month last year. Annualized inventory turnover in June was 5.3 turns, compared to 5.8 turns in 2002.

For June, the confidence level of Canadian distributors rose to 5.3 on a 10-point scale.

In June, U.S. manufacturers' year-to-date sales of PT/MC products dropped 11.0 percent as compared to sales for January through June in 2002. Sales climbed 7.2 percent over the previous month and decreased 9.9 percent as compared to June 2002. As compared to May, sales of mounted bearings, unmounted bearings, standard industrial motors, variable speed drives, positioning systems/linear motion products, gear products, mechanical drive 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 fell 12.3 percent as compared to 2002. June orders grew 12.7 percent over May but declined 12.2 percent as compared to June 2002. Annualized inventory turnover in June was 5.7 turns, compared to 6.9 turns in 2002.

For June, the confidence level of U.S. manufacturers remained flat at 5.2 on a 10-point scale.

Canadian manufacturers' year-to-date sales of PT/MC products were up 3.4 percent as compared to sales for January through June in 2002. Sales were down 2.8 percent over the previous month and rose 1.1 percent as compared to June 2002. As compared to May, sales of mounted bearings, variable speed drives, clutches and brakes, and shaft couplings increased. Sales of unmounted bearings, gear products, and mechanical drive systems and other PT products decreased.

For June, the confidence level of Canadian manufacturers held steady at 5.1 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 trends for mounted bearings, unmounted bearings, standard industrial motors, variable speed drives, positioning systems/linear motion products, gear products, mechanical drive systems and other PT products, clutches and brakes and shaft couplings.

The report is available by annual subscription via e-mail or mail by contacting +1.312.876.9461 or may be ordered online at www.ptda.org/catalog; PTDA members may download the report at no charge through the Members Only area of the PTDA web site, at www.ptda.org.

Founded in 1960, PTDA is an US-based trade association representing 220 power transmission/motion control (PT/MC) distributor firms with almost 3,200 locations throughout North America and 14 other countries, as well as 184 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.