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Gates Industrial Corporation plc (NYSE: GTES) is a global leader in manufacturing power transmission belts and fluid power products. Founded in 1911, Gates has built a strong reputation over the past century for quality and technological innovation. Headquartered in Denver, Colorado, the company operates in over 130 countries across four commercial regions: the Americas; Europe, Middle East & Africa; Greater China; and East Asia & India.
Core Business: Gates specializes in engineered solutions that are critical components in industrial and automotive applications. The company operates through two main segments: Power Transmission and Fluid Power. The Power Transmission segment includes belts, chains, and cables that transfer power from engines or motors to other parts of a system. The Fluid Power segment involves hoses and tubing assemblies that transfer power hydraulically or convey fluids, gases, or granular materials.
Products and Markets: Gates offers a premium portfolio of products and services for both replacement and first-fit applications. The company serves diverse end markets such as construction, agriculture, energy, automotive, and transportation. Gates' products are recognized globally for their high quality and reliability, making them the preferred choice for original equipment manufacturers, distributors, and installers.
Recent Achievements: In the fourth quarter of 2023, Gates reported net sales of $863.3 million and a full-year net sales of $3,570.2 million. The company has also reduced its net leverage ratio to 2.3x, showcasing strong financial health. Gates recently announced a share repurchase program worth $100 million, highlighting its commitment to creating shareholder value.
Current Projects: Gates is focused on enhancing its business performance through various enterprise initiatives. These include improving supply chain efficiencies and commercial execution. The company is also leveraging its strong cash balance to further reduce its net leverage ratio and capitalize on growth opportunities in targeted markets.
Financial Condition: As of the end of the first quarter of 2024, Gates had total cash and cash equivalents of $522.2 million and total outstanding debt of $2.4 billion. The company generated $189.3 million of cash from operations in the fourth quarter of 2023 and continues to manage its capital resources effectively.
Partnerships: Gates maintains strategic partnerships with leading industrial and automotive companies worldwide. These alliances enable Gates to provide comprehensive solutions that meet the specific needs of its customers.
Latest News: Gates has recently announced the pricing of a secondary offering of 17,500,000 ordinary shares by selling stockholders affiliated with Blackstone Inc., which is expected to close on May 21, 2024. The company also reported strong first-quarter results for 2024, with net sales of $862.6 million and adjusted EBITDA of $195.6 million, reflecting robust operational efficiency.
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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