Business Index Indicates Expansion but at slower rate.

Press Release Summary:



PTDA Business Index indicated 2Q2011 was fifth consecutive quarter for business growth among PTDA members. With reading of 70.2, recently released second quarter results indicate power transmission/motion control industry is expanding but at lowest rate since index's inception one year ago. Participating PTDA members have lowered their full year outlook for 2011. On average, members are forecasting 12% growth, which is down from 1Q outlook calling for 14% growth.



Original Press Release:



PTDA Business Index Indicates Continued Expansion but at a Slower Rate in the Power Transmission/Motion Control Market



Year-End Expectations Tempered

Chicago, Ill.-The PTDA Business Index indicated 2Q2011 was the fifth consecutive quarter for business growth among PTDA members. With a reading of 70.2, the recently released second quarter results indicate the power transmission/motion control industry is still expanding. However, the rate of expansion has slowed as the 70.2 reading is the lowest the index has been since its inception a year ago.

[Note: The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.]

The table below provides an overview of the results from the 2Q2011 index and a comparison to 1Q2011.

PTDA Quarterly Business Index
1Q2011 2Q2011
Business Activity 91.9 74.3
New Orders 92.6 68.2
Employment 78.8 69.3
Supplier Deliveries 78.8 69.0
Inventories 63.2 68.7
Prices 94.5 87.1
Backlog 78.7 71.1
Overall PTDA Index 85.5 70.2

PTDA members participating in the Business Index have also lowered their full year outlook for 2011. On average, members are now forecasting 12 percent growth, down from the 1Q outlook calling for 14 percent growth.

The PTDA Business Index full report is available through PTDA's website at www.ptda.org/Index. It includes U.S. and Canadian breakout data in addition to historical data. Conducted jointly by PTDA and Cleveland Research Company, the PTDA Quarterly Business Index was modeled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC market to arrive at an overall index.

Founded in 1960, the Power Transmission Distributors Association (PTDA) is the leading association for the industrial power transmission/motion control (PT/MC) distribution channel. A U.S.-based trade association, PTDA represents 188 power transmission/motion control distribution firms that generate more than $10 billion in sales and span 3,500 locations in North America and 11 other countries. PTDA members also include 187 manufacturers that supply the PT/MC industry.

PTDA is dedicated to providing exceptional networking, targeted education, relevant information and leading-edge business tools to help distributors and manufacturers meet marketplace demands competitively and profitably. For more information, visit www.ptda.org.

Contact:
Ginger Wheeler
Power Transmission Distributors Association (PTDA)
gwheeler@ptda.org
+1.312.516.2100

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