Gates reports sales increase in 2008

ERJ staff report (RD)

London, UK - Tomkins plc, owner of Gates Corp., formerly Gates Rubber, has announced its financial 2008 preliminary results.

In the company's Power Transmission group, sales rose to $2 106 million (Euro 1 689 million) from $2 063 million in 2007, and adjusted profit was up from $266.8 million in 2007 to $229.6 million.

Sales in the company's Power Transmission group increased “principally due to foreign exchange gains and price increases which more than offset lower underlying volumes from global weakening and end market conditions,” the company said 25 Feb.

Gates expanded its Electro Mechanical Drive (EMD) system, and now has 18 systems in production and development with customers such as PSA, Chery and Hyundai, the company said. In Europe Gates expanded its Variable Vane oil pumps, which contribute approximately 2-3 percent of fuel savings, winning new contracts with Audi and PSA. Gates expanded its applications in the leisure market, supplying Trek and Giant with belts for bicycles, the statement said.

The company's Fluid Power business reported sales of $832.3 million, up from $769.1 million in 2007, but saw a decline in operating profit from $71 million in 2007 to $46 million in 2008.

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Press release from Tomkins plc