August 2007 - Page 3 of 5 - Modern Distribution Management

Log In

Search

August 2007

Timken Reorganizes Into Two Business Groups

Free, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors /

The Timken Company, Canton, OH, will realign the company around two major business groups, the Steel Group and the Bearings and Power Transmission Group. The latter is composed of four divisions -Mobile Industries, Process Industries, Aerospace & Defense and Distribution & Services.
&nbsp ;
The company has named Michael C. Arnold as executive vice president and president, Bearings and Power Transmission Group. Salvatore J. Miraglia, Jr., will continue as president of the Steel Group.
&nbsp ;
Before, Timken had three groups: Steel, Industrial and Automotive.
&nbsp ;
The organizational changes are focused primarily on improving Timken’s operating effectiveness and are also anticipated to streamline operations and eliminate redundancies. When fully implemented, the …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Timken Reorganizes Into Two Business Groups Read More »

SYSCO Sales Up 7.4% in Fiscal 2007

Companies, Free, Grocery & Foodservice Distribution, News, Subscriber Only, Top Distributor Sectors /

SYSCO Corporation, Houston, TX, reported sales increased 8.5% to $9.23 billion in the fourth quarter ended June 30, 2007. Sales for fiscal 2007 increased 7.4% to $35.04 billion.
&nbsp ;
Profit was $303.4 million in the fourth quarter, compared with $254.1 million in the prior-year period. In fiscal 2007, profit was $1 billion, compared with $855.3 million in the prior fiscal year, an increase of 17%.

More details

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

SYSCO Sales Up 7.4% in Fiscal 2007 Read More »

Praxair Sells Interest in Israeli Company

Companies, Free, Gases & Welding Equipment, News, Subscriber Only, Top Distributor Sectors /

Industrial gases company Praxair, Inc., Danbury, CT, has agreed to sell its majority interest in Maxima Air Separation Center Ltd., Ramat Gan, Israel, to Discount Investment Corporation Ltd., one of Israel’s largest holding companies, a part of the IDB Group.
&nbsp ;
DIC already holds an interest in Maxima.
&nbsp ;
Maxima has two air separation plants and had sales of $23 million in 2006. Following the sale, Maxima will continue to serve as a distributor of Praxair’s products in Israel and will continue to have access to certain Praxair technology. Under the agreement, Maxima will be defined as a Praxair technology associate.
&nbsp ;
Praxair had 2006 sales of $8.3 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Praxair Sells Interest in Israeli Company Read More »

Norcross Safety Products Reports 19% 2Q Sales Jump

Free, News, Safety Products, Subscriber Only, Top Distributor Sectors /

Norcross Safety Products LLC, Oak Brook, IL,&nbsp ; reported sales were $156.4 million in the second quarter 2007, up 19% from the prior-year period.
&nbsp ;
In the general safety and preparedness segment, sales increased 17.6%. In the fire service segment, sales increased 15.8%. In the electrical safety segment, sales increased 30.3%, primarily driven by strong overall market demand, new product penetration and incremental net sales resulting from the acquisition of The White Rubber Corporation.
&nbsp ;
For the first six months of 2007, sales were up 13.8% to $304.6 million compared with the same period a year ago.
&nbsp ;
In the general safety and preparedness segment, sales increased 11.8. In the fire service segment, sales increased 7.1%. In the electrical …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Norcross Safety Products Reports 19% 2Q Sales Jump Read More »

ITW Acquires CAD Software Provider

Companies, Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

Illinois Tool Works Inc. has acquired Texas-based software provider Ameri-CAD Inc. The acquisition includes Ameri-CAD’s architectural services division as well as software solutions VisionREZ & VUDOX.
&nbsp ;
Ameri-CAD will function as a separate business unit in the ITW Building Components Group.
&nbsp ;
Illinois Tool Works acquisition of Ameri-CAD enables us to more quickly and effectively deliver on the promise of technology to a fragmented housing industry. Ameri-CAD’s intelligent model-based CAD software integrates and consolidates architectural, engineering and manufacturing data resulting in improved communication, and enhanced ROI,” said Jimmy Moore, Ameri-CAD, Inc. CEO.
&nbsp ;
Illinois Tool Works Inc. is a diversified manufacturer of fasteners and …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

ITW Acquires CAD Software Provider Read More »

MDM News Digest 3715

Free, Subscriber Only /

Platinum Equity has agreed to acquire Ryerson Inc., Chicago, IL, for $2 billion, which includes the assumption of debt. The price represents a 15 percent premium over Ryerson’s closing share price on Feb. 31, 2007, the day Ryerson announced it was considering strategic alternatives. Ryerson is a distributor and processor of metals in North America, with 2006 revenues of $5.9 billion. More
&nbsp ;
Ryerson reported second quarter sales of $1.6 billion, a 7.2 percent increase from the year-ago period. Profit was up 72 percent year-over-year. More&nbsp ;

Industrial Distribution Group, Inc.,

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

MDM News Digest 3715 Read More »

MDM Inflation Index: June 2007

Economic Trends, Research & Analytics, Subscriber Only /

Modern Distribution Management’s June Inflation Index, which measures a cross-section of industrial supplies, was up 0.18% from the previous month, and up 3.32% from June 2006.

Summary of&nbsp ; MDM Inflation Index for the past 12 months:
&nbsp ;
June 2007 Index 271.7
May 2007 Index 271.2
April 2007 Index 270.8
March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index&nbsp ; 267.1
November 2006 Index 266.5
October 2006 Index 265.9
September 2006 Index 265.6
August 2006 Index 265.2
July 2006 Index 264.0
June 2006 Index 263.0

Please click below to view a print-ready pdf of the&nbsp ; MDM Inflation Index for June 2007, listing the ten individual product categories …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

MDM Inflation Index: June 2007 Read More »

McJunkin-Red Man’s Goal: Growth

Companies, Finance, Mergers & Acquisitions, Subscriber Only, Top Distributor Sectors /

PVF distributors McJunkin Corp. and Red Man Tool and Supply will merge to form a $3-plus billion company. Private equity has a controlling interest in McJunkin, meaning the deal, to be finalized in September, is probably just the first of many steps in the companies’plans for growth.
&nbsp ;
The recently announced merger plan between leading pipe, valve and fittings (PVF) distributors McJunkin Corp. and Red Man Tool and Supply highlights the impact private equity is having in distribution. The deal would form a $3-plus billion company and largest U.S. PVF distributor.

Goldman Sachs owns a majority share of McJunkin, which was family-owned and -founded. One industry expert says the share is close to 60 percent, giving Goldman Sachs a controlling …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

McJunkin-Red Man’s Goal: Growth Read More »

Interview: The Impact of a Supplier Merger

Finance, Gases & Welding Equipment, Mergers & Acquisitions, Subscriber Only, Top Distributor Sectors /

In March 2006, Linde AG announced that The BOC Group had accepted its takeover offer.&nbsp ; The question of what the impact of this merger would be on the industry was of particular urgency to the companies’distributors. In the nine months since the acquisition, how have these two companies come together, and what have they done to ease the transition?

Bob Van Kirk, an 18-year BOC veteran who now serves as Linde’s head of key customers and distributors, and Scott Latta, vice president of the U.S. southern region for Linde, spoke with Laura Ferrel, editor of Welding & Gases Today magazine, about how Linde and BOC approached the merger from the perspective of their distributors. They reflected on the challenges, the opportunities for growth, and how one can never …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Interview: The Impact of a Supplier Merger Read More »

U.S. Manufacturers’ International Sales to Grow

Free, Subscriber Only /

PricewaterhouseCoopers second-quarter Manufacturing Barometer report showed that industrial manufacturing executives are optimistic about the international economy, but have lower expectations for the domestic economy’s performance over the next 12 months.

Industrial manufacturers have lowered their 12-month growth projections, citing oil/energy costs and competition from foreign markets among their top concerns, as well as the strength of the U.S. dollar and higher interest rates.

However, they remain optimistic that U.S. and global economies will grow and expect international sales to increase to 35 percent of total revenue over the next 12 months. This is an increase from 27 percent in the survey at the same time last year.

The majority plan to increase …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

U.S. Manufacturers’ International Sales to Grow Read More »

First-Half 2007 Construction Spending

Building Materials/Construction, Economic Trends, Research & Analytics, Subscriber Only, Top Distributor Sectors /

Total construction spending in the first half of 2007 was down 3.5% from the first half of 2006. Click below to download a pdf of private and public construction spending in the first …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

First-Half 2007 Construction Spending Read More »

Monthly Wholesale Trade – June 2007

Economic Trends, Research & Analytics, Subscriber Only /

June 2007 sales of merchant wholesalers, except manufacturers’sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $359.5, up 0.6 percent from the revised May level and were up 8.1 percent from the June 2006 level. The May preliminary estimate was revised upward $0.2 billion or 0.1 percent. June sales of durable goods were up 0.7 percent from last month and were up 4.9 percent from a year ago. Compared to last month, sales of computer and computer peripheral equipment and supplies were up 5.4 percent.
&nbsp ;
Inventories. Total inventories of merchant wholesalers, except manufacturers’sales branches and offices, after adjustment for seasonal variations but not for price changes, were $398.5 billion …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Monthly Wholesale Trade – June 2007 Read More »

Commentary: Consolidation Can Provide Opportunity for Smaller Distributors

Finance, Free, Mergers & Acquisitions, Perspective, Subscriber Only /

The lead article in this issue offers an interesting example of how private equity has been changing the course of consolidation in independent distribution channels. Would a family-held company such as McJunkin try to execute a deal of this size if not for the new ownership?

In any given sector of distribution, you can often identify one or more market leaders who are so locked into their paradigm of success by their own competitive and cultural history that they may not see emerging growth opportunities. Or the risk/reward equation appears too severe when they look at how their model could change. That may not be the case here, but it points out the competitive outlook outside investors can bring to company.

At the same time, you often find smaller distributors who …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Commentary: Consolidation Can Provide Opportunity for Smaller Distributors Read More »

Wholesale Revenues Rise 7.7% in First-Half 2007

Economic Trends, Research & Analytics, Subscriber Only /


Wholesaler-distributor revenues were $2.08 trillion in the first half of 2007, up 7.7% from the first half of 2006, unadjusted for seasonal variations. Wholesale revenues for durable goods were up 5.2%, and nondurable goods sales were up 9.6%. Here’s the breakdown in sales changes by sector for the first half of 2007:


Durable………………………………………….. Change&nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ;
Automotive………………………………………….. 2.7%&nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ; &nbsp ;
Furniture…………………………………………… 11.7%&nbsp …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Wholesale Revenues Rise 7.7% in First-Half 2007 Read More »

MDM August 10, 2007

Subscriber Only /

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

MDM August 10, 2007 Read More »

Applied Industrial Sales Up 6% in Fiscal 2007

Companies, Free, News, Subscriber Only, Top Distributor Sectors /

Applied Industrial Technologies, Cleveland, OH, reported sales for its fiscal year ended June 30, 2007, increased 6% to $2 billion. Profit for the year rose 19% to $86 million, versus $72 million in the prior year.
&nbsp ;
Sales for the fourth quarter were up 4.7% to $528 million from the prior-year period. Profit increased 22.2% to $24.6 million.
&nbsp ;
Applied reported that the housing industry slump has had an impact on some of its related markets; the sluggish performance” by the automobile manufacturing sector also negatively impacted the distributor’s performance.
&nbsp ;
Applied Industrial Technologies is an industrial distributor to MRO and OEM customers in virtually every …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Applied Industrial Sales Up 6% in Fiscal 2007 Read More »

Home Depot in Talks to Restructure HD Supply Deal

Building Materials/Construction, Companies, Free, News, Subscriber Only, Top Distributor Sectors /

The Home Depot, Atlanta, GA, announced it is in discussions with Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice with the aim of restructuring their agreement for the sale of HD Supply.
&nbsp ;
These discussions could result, among other things, in a reduction in the $10.3 billion purchase price. The announcement&nbsp ; may be a result of tightening credit markets,&nbsp ; which would make it more difficult to raise the cash needed to buy the unit.

No other details on the discussions were released.
&nbsp ;
In mid-June, Home Depot announced it would sell its wholesale division, a $12 billion unit, to the trio of private equity firms for roughly 10X-12X EBITDA. Read the original article here. …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Home Depot in Talks to Restructure HD Supply Deal Read More »

Marriages of Manufacturers, Distributors a Difficult Balancing Act

Free, Research & Analytics, Subscriber Only /

A few events do not make a trend. But I’ve noticed a few instances lately where manufacturers have bought up distribution in select markets. Examples: In July, a Swedish manufacturer of seals, Trelleborg, acquired AFM in Portland, OR, a $13-million distributor. HVAC manufacturer Carrier Corp. announced in June it was buying a $150-million distributor serving northern California and Nevada, E.B. Ward and Valair, with 140 employees.

It stirs memories of the difficult balancing act and sometimes rocky road cutting tool manufacturer Kennametal found when it operated an industrial distribution division while also managing independent distribution networks. It finally spun off its distribution units.

The reason given by Carrier for its purchase of distribution: The …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Marriages of Manufacturers, Distributors a Difficult Balancing Act Read More »

Powers Fasteners Indicted in Big Dig Tunnel Collapse

Fasteners, Free, Legal Issues in Wholesale Distribution, News, Operations, Subscriber Only, Top Distributor Sectors /

Power Fasteners Inc., Brewster, NY, a global fasteners manufacturer, has been indicted by a Grand Jury in connection with the July 10, 2006, ceiling panel collapse that killed one person in the I-90 Connector Tunnel (Big Dig tunnel) in Boston, MA. Powers has been charged with one count of involuntary manslaughter.
&nbsp ;
Milena Del Valle died when a suspended concrete ceiling panel collapsed on the vehicle she and her husband were traveling in. After a 13-month investigation, authorities determined that Powers’ epoxy was used to suspend the concrete ceiling in that section of the tunnel.

Federal authorities allege that the cause of the ceiling collapse was the use of Power-Fast Fast Set epoxy product in the anchor system. They say the type of epoxy used was found to be …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Powers Fasteners Indicted in Big Dig Tunnel Collapse Read More »

Rexnord Sales Up in 1Q

Free, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors /

Rexnord LLC reported sales for the first quarter ended June 30, 2007, were $448.2 million, an increase of 55.2% thanks to acquisitions over the same period a year ago. Power Transmission sales were $309.8 million, up 7.4%, and Water Management sales were $138.4 million.
&nbsp ;
Core sales growth was 9.2% on a pro-forma basis.
&nbsp ;
Rexnord reported that the end markets in both Power Transmission and Water Management have held up well in the first quarter.
&nbsp ;
Rexnord ended the quarter with a backlog in Power Transmission of $430 million, an increase of 7% from March 2007, and 23% compared with a year ago. In the Water Management platform, Rexnord saw strength in the end-markets of commercial construction as well as civil/municipal …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Rexnord Sales Up in 1Q Read More »

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!