DENVER—Gates has reported increases in both net sales and net income for the third quarter and the first nine months of 2018.
Net sales rose 9 percent to $828.4 million for the three-month period ending Sept. 29, according to a Gates news release. On the year, sales increased 13 percent to $2.56 billion, as the company continued to see strong demand in industrial end markets.
Recent acquisitions added 3.9 percent to net sales during the period, partially offset by a 2.2 negative impact from foreign currency.
Net income more than tripled to $66.7 million for the three-month period. Through three quarters, it jumped 259 percent to $188.6 million.
Regionally, North America contributed double-digit core growth, while emerging markets continued to perform well, Gates said.
By segment, Power Transmission net sales saw a 2.5 percent increase to $512.6 million in the third quarter, reflecting core revenue growth of 4.7, offset partially by 2.2 of unfavorable foreign currency effects. Since January, net sales rose 7.5 percent to $1.61 billion. Gates saw strong replacement channel sales growth, with the highest global growth rates in North America, China and Europe.
For Fluid Power, revenue rose 21.2 percent to $316 million on the quarter, with accelerating core revenue growth of 12.1 percent, incremental net sales from recent acquisitions of 11.3 and a partial offset from unfavorable foreign currency effects of 2.2 percent.
For the nine-month period, net sales grew 24.1 percent to $947.4 million. Core revenue growth continued to be driven by strong demand in industrial end markets, particularly in mobile hydraulic applications and other general industrial applications. Gates saw double-digit core revenue growth in developed and emerging markets during the quarter.