DENVER (May 10, 2012)—Gates Corp. has posted an increase in sales for the first quarter in its Americas markets, although sales decreased in the Asia-Pacific and Europe, Middle East and Africa regions.
The Denver-based unit of Dutch firm Pinafore Holdings B.V. saw a 5-percent increase in North American sales, reaching $351 million. Earnings were down very slightly at $80.1 million from $81.7 million in 2011. The earnings margin also dropped from 24.5 percent in 2011's first quarter to 22.8 percent this year.
In South America, sales grew by 7.5 percent to $43.2 million. Earnings were up at $4 million from $3.4 million in last year's first quarter. Operating margin was slightly up at 9.3 percent.
Gates EMEA region reported sales of $204.5 million, a loss of 6.2 percent from a year earlier, while both earnings ($31.9 million) and profit margin (15.6 percent) were down. Sales to the industrial replacement market were up year-on-year. However, this was offset by lower volumes across all other end markets, particularly the automotive aftermarket, Gates said.
Sales also dropped in the Asia-Pacific region by 1.1 percent at $168 million. Earnings were up slightly at $4 million from $3.4 million and operating margin was down by 2 percent at 19.1 percent.