ST. PAUL, MN (March 12, 2003)- During the fourth quarter of 2002, sales of generator sets increased by about 1.8 percent compared to the previous quarter, American and Canadian dealers reported in the updated PowerTracker™ survey. This represents an improvement over the third quarter, when participating dealers had registered a minuscule sales increase of only 0.55 percent over the second quarter. However, it falls short of the 2.5 percent sales growth that the dealers had expected for the last quarter of the year.

Once more, sales varied greatly by kW ranges. For units up to 20 kW, sales stabilized during the fourth quarter, while larger gensets experienced declines between 1.5 and four percent. One exception was the 101-300 kW category where dealers saw moderate sales growth for two successive quarters (Q3 and Q4 2002). Participants also reported that diesel units sold better during the fourth quarter than those powered by gasoline, natural gas, and LPG engines.

The completion of the Q4 dealer interviews also revealed a positive inventory-to-sales ratio. Participants indicated that their inventory had decreased by about 2.6 percent during the fourth quarter, the same rate as in the third. Combined with two quarters of very slight, but clearly positive sales change (0.55 percent and 1.8 percent respectively), this seems to indicate a mild recovery in generator set sales. Stefan Hartmann, PowerTracker™ project manager, pointed out that there was much uncertainty left about true rate of recovery: "The improvements are too small to tell whether we are looking at a real trend. But at least, many of the curves are pointing in the right direction."

PowerTracker™ monitors the market developments for all engine-powered generator sets sold in the United States and Canada. Gen set dealers, distributors, business consumers and household consumers are surveyed quarterly to determine their short-term expectations for the market. PowerTracker™ analyzes market activity and industry developments for various gen set applications, brands and customer groups. The core data for this gen set study originates from a series of 1400 interviews conducted on a quarterly basis with potential and actual users of gen sets as well as key dealership and distributor personnel. Further information about this survey and other MarketTracker™ surveys is available at http://www.powersys.com/sur_track.html.

Power Systems Research is a global market research and consulting company specializing in the engine, original equipment, and components industries. Since the company was founded in 1976, Power Systems Research has been the authoritative source of market information and business intelligence to the power products and drivetrain industry. Power Systems Research is headquartered in St. Paul, Minnesota and provides market data and customized project work to the world's leading vehicle and equipment OEMs and component suppliers. The company has a global presence with operations in Detroit, Brussels and Tokyo. Further information is available at http://www.powersys.com.