PT/MC Sales by Distributors Fall 7.2% in May

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July 9, 2008

PT/MC Sales by Distributors Fall 7.2% in May

U.S. distributors’ overall sales of Power Transmission/Motion Control products declined 7.2% in May 2008 compared to April 2008, according to the latest month-end trend data from the Power Transmission Distributors Association. When matched up against sales in the same month last year, sales in May 2008 were up 1%.

Accounts receivable collection days rose 7.8% since April 2008. The confidence index of U.S. distributors dropped to 5.6 in May 2008 from 5.8 in April 2008 (on a 10-point scale) the first decline since February 2007.

Canadian distributors also reported a decrease in PT/MC sales, dropping 5.4% in May 2008. Sales over the same period last year were down 6.8%. Accounts receivable collection days rose 2.5% compared to April 2008. In May 2008, the confidence level of Canadian distributors was held constant for the fourth month in a row at 5.7 (on a 10-point scale).

U.S. manufacturers’ sales increased slightly in May 2008, with a 0.9% gain compared to April 2008. Sales in May 2008 climbed 3.8% compared to the same period last year. Orders in May 2008 were up 10.9% over April 2008. The confidence level of U.S. manufacturers rose 0.3 in May 2008 to 5.4 (on a 10-point).

Canadian manufacturer’s sales declined significantly in May 2008 with a 10.3% loss compared to March 2008. Sales were down 11.1% when compared to the same period last year. The confidence level of Canadian manufacturers decreased 0.1 to 4.9 (on a 10-point scale) from April 2008 to May 2008. This is the first time the confidence level has fallen below 5.0 since January 2003.

Product-by-product sales between April 2008 and May 2008 reflect the overall increase in sales experienced by U.S. manufacturers and the decline of sales experienced by Canadian manufacturers. Four of nine product categories for U.S. manufacturers—variable speed drives, clutches & brakes, unmounted bearings and positioning systems/ linear motion products—posted sales gains. For Canadian manufacturers, three manufactured products posted a positive gain—variable speed drives, shaft couplings and clutches & brakes.

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