Welcome to our dedicated page for Gates Industrial news (Ticker: GTES), a resource for investors and traders seeking the latest updates and insights on Gates Industrial stock.
Overview
Gates Industrial Corporation PLC (NYSE: GTES) is a global manufacturer renowned for its engineered power transmission and fluid power solutions. With a history dating back to 1911, the company has established a reputation for delivering critical, high-performance components across diverse sectors such as automotive, construction, agriculture, energy, and transportation. Its products, including premium power transmission belts and innovative fluid power components, are designed to operate reliably in demanding and mission-critical industrial applications, where the cost of failure far outweighs the product cost.
Business Segments
Gates Industrial operates primarily through two well-defined business segments:
- Power Transmission: This segment focuses on conveying power and controlling motion using engineered belts, chains, cables, geared transmissions, and direct drives. These solutions are integrated into systems where precision and reliability are paramount, serving global markets in both OEM (first-fit) and replacement channels.
- Fluid Power: Dedicated to hydraulic and fluid conveyance applications, this segment produces hoses and rigid tubing assemblies. These components are crucial in transferring power, fluids, gases, or granular materials in industrial, automotive, and other specialized markets.
Market Coverage and Global Presence
With operations spanning the United States, United Kingdom, Luxembourg, and broader EMEA regions, Gates Industrial supplies its products to customers worldwide. Its global footprint ensures that distributors, original equipment manufacturers, and installers across more than 130 countries recognize and rely on the premium quality and technological sophistication of the Gates brand. The company’s enduring commitment to quality has earned it a solid and respected market position, enabling it to serve both high-demand industrial markets and everyday consumer applications.
Competitive Position and Differentiators
Gates Industrial distinguishes itself in a competitive landscape by offering a comprehensive portfolio that spans both replacement and first-fit applications. Key differentiators include:
- Engineering Excellence: The company’s long history of innovation is evident in its sophisticated design and manufacturing processes that consistently meet strict reliability standards.
- Technological Innovation: Gates invests in advanced materials science and engineering initiatives that drive improvements in performance and efficiency, ensuring its products remain at the cutting edge of industrial applications.
- Operational Flexibility: By serving a broad array of end markets—from harsh, hazardous conditions to everyday applications—the company provides versatile solutions that can be customized to the specific needs of diverse industries.
Engineering and Innovation
The company’s commitment to innovation is not merely about product development but also about enhancing manufacturing performance. Its enterprise initiatives focus on optimizing operational efficiency and improving product quality, which in turn help maintain robust gross margins even in competitive and fluctuating demand environments. This focus on engineering and operational excellence underlines Gates Industrial's ability to deliver reliable, long-lasting products that meet the exacting standards of industrial, automotive, and fluid conveyance applications.
Customer Base and Applications
Gates Industrial’s products are integral to applications where even minor failures can have significant cost implications. Customers include:
- OEMs requiring high-quality, application-specific components for new machinery and vehicles.
- Replacement channel customers who demand reliable aftermarket solutions to restore critical operations.
- End users in industrial settings ranging from heavy machinery to specialized consumer products such as power washers and vacuum cleaners.
Reliability and Engineering Heritage
With over a century of engineering expertise, Gates Industrial exemplifies reliability and technological sophistication. Its products are designed to perform under extreme conditions and are a vital part of many systems where exceptional performance is non-negotiable. This engineering heritage forms the cornerstone of its brand reputation and is a key driver in its continuous pursuit of innovation and quality.
Conclusion
Gates Industrial Corporation PLC offers an in-depth, engineering-driven approach to power transmission and fluid power solutions. By leveraging advanced manufacturing techniques and a global operational footprint, the company delivers products that underpin the performance of critical industrial, automotive, and construction applications. Its commitment to premium quality and innovation reaffirms its standing as a trusted supplier across a diverse range of end markets.
Gates (NYSE: GTES) is launching the Data Master™ Data Center Cooling Hose in Q4 2024, expanding its data center cooling portfolio. This innovative fluid conveyance solution is designed for high-performance computing environments, offering superior flexibility, performance, and cleanliness. Key features include:
- Enhanced flexibility and compactness for easier assembly and routing
- Compliance with UL94V-0 and VW-1 flame resistance standards
- Specialty-compounded materials to ensure system cleanliness
- Reduced fluid contamination for fewer operational disruptions
The product addresses the growing demand for liquid cooling solutions in data centers, particularly for compute-intensive applications like AI. Gates, a member of the Open Compute Project (OCP), continues to invest in innovative technologies to meet evolving data center needs.
Gates (NYSE: GTES), a global manufacturer of power transmission and fluid power solutions, has released its 2023 Sustainability Report. The report highlights progress in four key areas: Governance, Technology, Environment, and Stewardship. Notable achievements include:
- Bringing 818,000 kWh of solar energy online
- Reducing 18M kWh of natural gas and 7M kWh of electricity consumption
- 20% decrease in Total Case Incident Rates (TCIR)
- 15% reduction in severe injuries
Gates continues to focus on decarbonization, waste reduction, and water conservation. The company's sustainability reporting aligns with international standards, including IFRS, SASB, TCFD, GRI, and UN SDGs. Gates employees are actively involved in community volunteer activities, demonstrating the company's commitment to making a positive impact globally.
Gates Industrial plc (NYSE: GTES), a leading manufacturer of power transmission and fluid power solutions, has announced its participation in Morgan Stanley's 12th Annual Laguna Conference. The event will take place on September 11, 2024, in Dana Point, California.
Brooks Mallard, the company's Chief Financial Officer, is scheduled to present at 9:55 am Pacific time. Investors and interested parties can access a webcast of the presentation through the Events & Presentations section of Gates Industrial's Investor Relations website at investors.gates.com.
This conference participation provides an opportunity for Gates Industrial to showcase its innovative solutions and engage with industry professionals and investors. The company's presence at such events demonstrates its commitment to transparency and shareholder communication.
Gates Industrial plc (NYSE: GTES) has announced the pricing of a secondary offering of 20,000,000 ordinary shares by certain selling stockholders affiliated with Blackstone Inc. The underwriters have a 30-day option to purchase up to 3,000,000 additional shares. The offering is expected to close on August 21, 2024. Gates will not receive any proceeds from the sale.
In connection with its existing share repurchase program, Gates has entered into a contract to repurchase $125 million of ordinary shares at the same price paid by the underwriters, totaling 7,539,203 shares. This repurchase is conditioned upon the closing of the offering. Additionally, one of Gates' directors has expressed interest in purchasing shares in the offering.
Gates Industrial plc (NYSE: GTES) has announced a secondary offering of 20,000,000 ordinary shares by certain selling stockholders affiliated with Blackstone Inc. The underwriters have a 30-day option to purchase up to 3,000,000 additional shares. Gates will not receive any proceeds from this offering.
Concurrently, Gates has entered into a share repurchase contract with Citigroup Global Markets Inc. to buy back $125 million of ordinary shares at the same price as the offering. This repurchase is contingent on the offering's closing. Additionally, one of Gates' directors has expressed interest in purchasing shares in the offering.
Citigroup, Goldman Sachs & Co. , and Jefferies are serving as the joint lead book-running managers for the offering.
Gates Industrial plc (NYSE:GTES) reported Q2 2024 results with net sales of $885.5 million, down 5.4% year-over-year. Net income was $70.7 million or $0.26 per diluted share. Adjusted Net Income was $0.36 per diluted share. Adjusted EBITDA was $202.2 million with a margin of 22.8%, up 170 basis points.
The company updated its 2024 guidance, now expecting core sales growth of -4% to -2%, Adjusted EBITDA of $740-$770 million, and Adjusted EPS of $1.29-$1.35. A new $250 million share repurchase authorization was announced, valid through December 2025.
Power Transmission segment sales declined 5.6% to $541.9 million, while Fluid Power segment sales decreased 5.2% to $343.6 million. The company generated $93.8 million in operating cash flow during Q2.
Gates Industrial plc (NYSE:GTES) has announced a time change for its second-quarter 2024 earnings conference call. The call will now take place at 9 a.m. Eastern time on Wednesday, July 31, 2024, an hour earlier than previously scheduled.
Participants can join the call by dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and providing the Conference ID 5772067. A live webcast will also be available on the company's investor relations website.
An audio replay will be accessible from approximately 1:00 p.m. Eastern time on July 31 until 11:59 p.m. Eastern time on August 7, 2024. To access the replay, dial (800) 770-2030 (domestic) or +1 (647) 362-9199 (international) with the passcode 5772067, or visit the company's website.
Gates Industrial (NYSE: GTES) will release its second-quarter 2024 earnings report before the market opens on July 31, 2024. The company's management will host a webcast and conference call at 10:00 a.m. Eastern Time on the same day to discuss the financial results. Interested parties can join the call by dialing specific numbers and using the Conference ID 5772067, or they can access the live webcast through Gates Industrial's investor relations website. An audio replay will be available from 1:00 p.m. on July 31, 2024, until 11:59 p.m. on August 7, 2024.
DENVER, June 17, 2024 -- Gates Industrial (NYSE: GTES) has appointed John Patouhas as the new Senior Vice President and Chief Accounting Officer, starting June 17, 2024.
John will lead the company's accounting function, focusing on financial reporting, risk management, controls, and compliance.
He brings extensive experience from companies such as Tenneco, Federal Mogul, and Deloitte and holds an MBA in Finance and a BBA in Accounting from Wayne State University.
Gates is a global manufacturer of power transmission and fluid power solutions, serving a wide range of industries and selling products in over 130 countries.
Gates Industrial (NYSE: GTES) announced the pricing of $500 million in 6.875% Senior Notes due 2029.
The notes will be guaranteed by Gates Industrial Holdco and other subsidiaries. The offering is expected to be completed on June 4, 2024, subject to customary closing conditions.
The proceeds will be used to refinance existing debts.
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