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First Quarter Power Transmission Sales Up 12.6%


U.S. distributors' first-quarter 2005 sales of PT/MC products grew 12.6 percent as compared to sales for January through March 2004. Sales in March were up 1.6 percent over February and increased 9.9 percent as compared to March 2004, according to the March trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products, released by the Power Transmission Distributors Association.


Days sales in accounts receivables increased 2.1 percent as compared over February 2005 and were up 3.1 percent as compared to the same month last year. Annualized sales to inventory ratio in March was 9.2, compared to 8.8 in 2004. For March, the confidence level of U.S. distributors fell from 6.7 in February to 6.5 on a 10-point scale.


Canadian distributors' year-to-date sales of PT/MC products grew 11.8 percent as compared to sales for January through March 2004. Sales were up 5.1 percent over February and increased 10.8 percent as compared to March 2004.


Days sales in accounts receivables increased 0.4 percent over February 2005 and decreased 1.2 percent as compared to the same month last year. Annualized sales to inventory ratio in March was 8.2 compared to 8.4 in 2004. For March, the confidence level of Canadian distributors remained flat as compared to February at 6.8 on a 10-point scale.


In March, U.S. manufacturers' sales of PT/MC products rose 14.5 percent as compared to sales for January through March 2004. Sales increased 0.8 percent over February and were up 12.8 percent as compared to March 2004. As compared to the previous month, sales of mounted bearings, standard industrial motors, variable speed drives, mechanical drive systems and other PT products and shaft couplings increased. Sales of unmounted bearings, positioning systems/linear motion products, gear products, and clutches and brakes decreased.


Year-to-date orders of PT/MC products from U.S. manufacturers grew 15.7 percent as compared to 2004. March orders decreased 4.1 percent over February and increased 10.2 percent as compared to March 2004. Annualized sales to inventory ratio in March was 10.2, compared to 9.8 in 2004. For March, the confidence level of U.S. manufacturers remained flat as compared to February at 5.7 on a 10-point scale.


Canadian manufacturers' sales of PT/MC products increased 2.8 percent as compared to sales for January through March in 2004. Sales were up 1.8 percent over the previous month and decreased 3.7 percent as compared to March 2004. As compared to February, sales of variable speed drives, gear products and mechanical drive systems and other PT products increased. Sales of mounted bearings, unmounted bearings, clutches and brakes, and shaft couplings decreased. For March the confidence level of Canadian manufacturers fell from 5.6 in February to 5.4 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. More information at www.ptda.org.

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