These select product groups provide a snapshot of inflation trends. Third quarter 2006 is compared with third quarter 2007, and the second quarter 2007 with the third quarter 2007. Graphs depict trends from January 2006. Download complete  ; file below.   ; Abrasives Adhesives & Sealants Cutting Tools & Accessories Hand & Edge Tools   ; Fasteners Power-Driven Hand Tools Ball & Roller Bearings Mechanical Power Transmission Equipment
Electrical Machinery/Equipment Industrial Material Handling Equipment Industrial Gases Welding Machinery/Equipment
Valves, Except Fluid Power Pumps, Compressors & Equipment Fluid Power Equipment Plumbing Fixtures & Fittings
Modern Distribution Management’s September Inflation Index, which measures a cross-section of industrial supplies, was up 0.06% from the previous month, and up 3.0% from September 2006.   ; Summary of  ; MDM Inflation Index for the past 12 months:   ; September 2007 Index 273.5 August 2007 Index 273.3 July 2007 Index 272.4 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  ; 267.1 November 2006 Index 266.5 October 2006 Index 265.9 September 2006 Index 265.6
Please click below to view a print-ready pdf of the  ; MDM Inflation Index for September 2007, listing the ten individual …
A bidding war has possibly been avoided in the fight for Dutch electrical/industrial distributor Hagemeyer’s global assets. Rexel just bid nearly $4.3 billion for the company, but plans to only keep a little over half of Hagemeyer when all is said and done. Sonepar has agreed to buy the rest.   ;   ; In an interesting twist, French-based distributor Rexel has made an offer to acquire Hagemeyer, and has agreed to sell certain assets of Hagemeyer to Sonepar if its offer is accepted.   ; The move eliminates the possibility of a bidding war between the two electrical distribution giants. It also plays down the risk of buying the entire company.   ; Rexel’s offer was made for & euro; 4.60 euro a share in cash, valuing Hagemeyer at & euro; 3 …
This table highlights key financial metrics and trading multiples for 30 publicly traded distributors in the industrial and building products industries up to September 30, 2007. Download this data below. Also find graphic illustrating median EBIDTA multiples for the same distribution companies.
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These materials,  ; prepared by Robert W. Baird & Co. for MDM,  ; are for informational purposes …
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 …
Snap-on Inc., Kenosha, WI, manufacturer and marketer of tools, diagnostics and equipment solutions for professional users, reported sales in the third quarter 2007 were $680.7 million, up 14.5% over the prior-year period.   ; Sales include $48.6 million from the November 2006 acquisition of Business Solutions and $19.3 million of currency translation. Partially offsetting the sales increase was $22.5 million of lower sales from the wind down of an OEM facilitation program.   ; Profit was $41.1 million.   ; Tools Group segment sales of $262 million increased 7.4%, from prior-year levels, including a 5.4% increase in North America. Sales in the company’s international franchise operations increased 15.4%, primarily due to continued strong sales growth in …
MSC Industrial Direct Inc., Melville, NY, distributor of MRO supplies to industrial customers in the U.S., reported sales in fiscal year 2007 ended Sept. 1 were $1.7 billion, up 28.1%. J & L Industrial Supply was acquired in June 2006, and contributed $218.9 million for the first three quarters of fiscal 2007.   ; Profit for the year was $173.9 million, an increase of 27.5%.   ; Sales for the fourth quarter were $450.5 million, up 16.7% from the prior-year period. Profit was up 39% to $47.4 million.   ; The fourth quarter marked the completion of MSC’s integration of J & L. MSC has completed the consolidation of J & L’s distribution centers and support functions into MSC. Sales force training program has seen good initial progress” as the company looks …
Motion Industries, Birmingham, AL, MRO distributor, has acquired Meier Transmission. Meier has two locations in northeast Ohio and is a distributor of motion control products, mechanical and electrical drives, pneumatic controls, machine safety products, and power transmission products.
Brian McMahon will remain in charge of Meier, and the company will operate under the name Meier Transmission. The company will join Motion’s new automation and systems businesses.
Motion had sales of $3.1 billion in 2006. It is a wholly owned subsidiary of Genuine Parts …
Praxair, Inc., Danbury, CT, reported third-quarter 2007 sales of $2.37 billion, 13% above the prior-year period. Profit grew 23% to $305 million.   ; Sales were led by strong growth in Asia and South America from new business and project start-ups, and continued stable growth in North America.   ; In North America, third-quarter sales reached $1.3 billion, 10% above the prior year. Growth came primarily from higher sales to energy and general manufacturing markets.   ; In Europe, third-quarter sales of $325 million increased 11%, and 4% excluding currency effects, versus the prior year. Underlying sales growth came from all major regions and end-markets.   ; In South America, third-quarter sales of $419 million grew 23% from the prior-year …
Housing starts in September were at a seasonally adjusted annual rate of 1,191,000, 10.2% below the revised August estimate and 30.8% below the revised September 2006 rate.   ; Single-family housing starts were 1.7% below the August rate.   ; Year-to-Date Percent Change
August U.S. manufacturing technology consumption totaled $347.25 million, according to rhe Association for Manufacturing Technology and the American Machine Tool Distributors’Association. This total was up 26.6% from July, and up 9.7% from the total of $316.44 million reported for August 2006. With a year-to-date total of $2,609.41 million, 2007 was up 6.2% compared with 2006.
These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program. Machine tool orders have outpaced last year’s results due in part to the decline in the dollar’s strength, which is making manufacturing in the U.S. more competitive,” said John B. Byrd III, AMT president.  ; “However, it may be difficult to sustain the current …
Metals distributor Ryerson Inc., Chicago, IL, has taken the initial steps in a reorganization following its acquisition by buyout firm Platinum Equity.   ; On Monday, Platinum made several appointments to the company’s senior leadership team:
Robert Archambault was named Interim CEO. Archambault is a partner at Platinum Equity overseeing the Ryerson investment.
Stephen Makarewicz was been appointed as President and COO. Makarewicz was previously President of Ryerson South.
Terence Rogers was appointed as Executive Vice President and Chief Financial Officer. Rogers was previously Vice President of Finance for Ryerson.
Economist Alan Beaulieu (of the Institute for Trend Research) is well-known in the distribution world as a prolific speaker at association events and often remembered for his frightening Recession in 2009-2010 theory. When I asked him recently whether there were opponents to that idea, he replied honestly: Of course.”   ; Beaulieu’s forecast is based on the idea that we are already in a slowdown in part due to the housing decline, high interest rates, baby boomers’ approaching retirement (resulting in  ; government budget strain),  ; high oil prices (and the impact that will have on consumer spending) and demand for oil in India and China, inflation and pressure on wages, and a slowdown in business spending. He uses a series of graphs that show how the current trends …
Diversified manufacturer Atlas Copco reported organic sales growth of 19% in the third quarter 2007.
In North America, demand for industrial equipment and related aftermarket products increased. Demand for advanced assembly tools and systems from the motor vehicle industry, however, decreased from the prior year.
The mining industry in North America -particularly Mexico and Canada -remained active with strong increases in demand for drilling and loading equipment as well as for consumables. Demand from the construction market was weaker, but still at a healthy level,” Atlas Copco reported.
In South America, the company saw strong growth in Brazil with sales increases in compressors, mining and construction equipment and industrial tools. Demand was also …
Anixter Anixter International Inc., Glenview, IL, distributor of communication products, electrical and electronic wire & cable and a distributor of fasteners and other small parts, reported sales of $1.52 billion in the third quarter 2007, which includes $31.7 million from acquisitions in the past 12 months. Sales were up 14%.   ; Profit fell 15% to $64.8 million.   ; For the nine-month period ended Sept. 28, 2007, sales of $4.36 billion produced profit of $183 million. Included in the 2007 nine-month results were sales of $105 million from acquisitions in the past year.   ;   ; Robert Grubbs, President and CEO, said: The 14% sales growth generated in the current quarter was particularly encouraging in light of the significant economic …
Schneider Electric Schneider Electric reported sales growth of 28.4% in the third quarter 2007, with revenues of 4.5 billion euro (US$6.4 billion). Acquisitions contributed 17% of sales growth. The currency effect reduced sales by 2.4%.   ; Organic growth was 13.8%. Schneider attributes the growth to strong demand for energy efficiency, critical power and investment in infrastructure for water treatment, raw materials extraction and transformation, transportation and data centers.   ; Sales in North America in constant terms were up 13.1% to 1.3 billion euro (US$1.8 billion). For the first nine months, sales were up 12.7% in North America.   ; Trends were reported as strong in all end markets except residential, which accounts for just 12% of …
Netherlands-based Hagemeyer NV reported Group revenue was up 3.2% on an organic basis in the third quarter 2007, with sales of 1.6 billion euro (US$2.3 billion …
Adhesives supplier Barker, Inc., Fort Wayne, IN, and Adhesive & Equipment Co., Grand Rapids, MI, will merge. The new company will remain in Fort Wayne and will be known as A & E Barker Inc. Together the companies will have $12 million in sales.   ; A & E Barker will focus on industrial and commercial customers in Michigan, Indiana, Northern Kentucky and Western Ohio.   ; Both companies are regional distributors for H. B. Fuller, Bostik division of Total Petroleum, Nordson Equipment, Plexus and other adhesive and equipment …
Columbus McKinnon Corp., Amherst, NY, reported a 5% increase in sales in its second quarter fiscal 2008 to $151.4 million. The Company’s Products segment, which represents 92.7% of total revenue, increased sales by 8.7% to $140.3 million, offsetting the managed hold-back of sales in the Solutions segment, which declined 26.9% to $11.1 million.   ; Profit was $9.5 million for the second quarter, a 13.7% increase.   ; Columbus McKinnon is a manufacturer of material handling products, systems and services. Key products include hoists, cranes, chain and forged …
Applied Industrial Technologies, Cleveland, OH, reported that for its fiscal 2008 first quarter ended Sept. 30, profit rose by 15.8% and sales rose 5.3%.   ; Sales for the first quarter increased to $518.5 million. Profit was $24.5 million.   ; Commenting on the performance, Applied Chairman & Chief Executive Officer David L. Pugh said: The demand for our products continued to grow in keeping with our economic expectations.  ; While the slowdown in the housing market affected some of our customers, maintenance and repair part sales to manufacturing customers were strong.”   ; Applied is an industrial distributor with more than 445 facilities and 4,600 employees in North America. For its fiscal year ended June 30, 2007, Applied posted sales of $2 …
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