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Gates Industrial Corporation plc (GTES-3.93%) has submitted its annual report filing for the fiscal year ended December 28, 2024.
The report details the company's financial performance, showing net sales of $3,408.2 million, a decrease from $3,570.2 million in the previous year. The decline was attributed to lower sales volumes and adverse currency movements, partially offset by pricing benefits.
The company's operating income from continuing operations was $478.7 million, compared to $462.6 million in the prior year. This increase was driven by improved manufacturing performance and pricing strategies.
Gates reported a net income from continuing operations of $220.5 million, down from $257.0 million the previous year, primarily due to higher income tax expenses.
The company recorded an income tax expense of $107.5 million, resulting in an effective tax rate of 32.8%, compared to 9.9% in the previous year. The increase was mainly due to changes in deferred tax assets and liabilities.
Gates' cash flow from operating activities was $379.6 million, a decrease from $481.0 million in the prior year. The reduction was primarily due to changes in trade working capital and higher taxes paid.
Restructuring expenses for the year totaled $6.5 million, related to the relocation and reorganization of operations in Mexico and other regions.
The company continues to focus on its two main segments, Power Transmission and Fluid Power, reporting adjusted EBITDA of $468.7 million and $292.4 million, respectively.
Gates Industrial Corporation plc remains committed to managing its financial resources effectively, with cash and cash equivalents of $682.0 million and a total debt of $2,350.6 million as of December 28, 2024.
The annual report also highlights the company's efforts to manage risks related to foreign currency exchange, interest rates, and commodity prices through various financial instruments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Gates Industrial Corporation plc annual 10-K report dated February 6, 2025. To report an error, please email earnings@qz.com.