Gates Industrial Corporation plc reported third-quarter 2024 net sales of $830.7 million, a decrease of 4.8% compared to the prior-year quarter. Core sales declined by 3.8%, primarily due to a decrease in Original Equipment Manufacturer (OEM) sales, which more than offset slight growth in the replacement channel.
Despite the sales decline, the company achieved an Adjusted EBITDA margin of 22.0%, representing an expansion of 30 basis points year-over-year. This margin improvement was driven by enterprise initiatives that positively impacted manufacturing performance and pricing, along with a favorable channel mix, partially mitigated by lower volumes.
For the full year 2024, Gates Industrial updated its guidance, narrowing the core sales growth range to approximately (4%) to (3%) from the prior (4%) to (2%). However, the company raised its Adjusted EPS guidance to $1.33 to $1.37 from the previous $1.29 to $1.35, while maintaining its Adjusted EBITDA guidance at $745 million to $765 million.
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