Underlying demand, he said, remained “supportive,” with largely stable order rates across most markets.
Jurek said the pricing action implemented by the group allowed it to offset accelerating energy and petrochemical input costs.
As a result, the company reported sequential margin improvement in what it described as a difficult economic environment.
Jurek noted that the availability of some supply chain inputs had been improving.
Gates, however, continued to face disruptions associated primarily with highly engineered polymers, he said, as well as incremental inflation and additional foreign currency headwinds.
“Our dedicated Gates associates are focused on managing through these external issues that we believe are largely temporary in nature,” Jurek said.
“However, we do expect their normalization to take longer than originally anticipated,” he added.
The official also said that Gates is initiating “the next phase of (its) footprint optimization plan.”
Jurek did not provide further details for the plan, but he said it is expected to improve the efficiency of operations and increase flexibility within the group.
“We believe our business is well positioned as we prepare to enter 2023, with a robust backlog, strong pricing position and operational improvements underway,” he said.
