The Black &Decker Corp., Towson, MD, reported sales were down 3% to $1.6 billion in the second quarter 2008, including a positive 5% impact from foreign currency translation.
Profit for the second quarter of 2008 was $96.7 million, versus $118.0 million for the second quarter of 2007.
The manufacturer of power tools and accessories, hardware and home improvement products, and technology-based fastening systems said weak demand in the U.S. and slowing conditions in parts of Western Europe hurt results.
Power Tools and Accessories sales decreased 10% in the quarter. In the U.S. Industrial Products group, sales were down at a double-digit rate, and the U.S. Consumer Products Group saw a sales decrease of more than 25%.
In my regular reading of the Wall Street Journal, I came across an interesting comment on a column focused on helping parents help their children find a career path “that will lead to financial security.” The reader’s comment in response to a request for advice: “Do not pursue dying industries, such as journalism (no offense), the law (unless you can gain admittance to a top 10 school) or (most) industrial jobs.”
The comment didn’t fit with what I hear at various distribution association conferences, where industrial distributors and manufacturers often bemoan a lack of skilled workers with management potential. Industrial distribution and manufacturing are …
NorthEast Electrical Distributors, Canton, MA, a subsidiary of Sonepar USA, has opened a new branch in Milford, MA. The new location occupies 7,400 square feet, including a 1,400-square-foot storefront and merchandised counter area.
NorthEast has been serving contractors in this area for quite some time, and in order to meet all the needs of current and future customers, we elected to be closer to their day-to-day business,”said Don Block, president of NorthEast Electrical Distributors.
The new facility will hold an inventory valued at over $300,000. A grand opening event is planned for September.
Chicago, IL-based Grainger has agreed to a settlement of $6 million with the U.S. Department of Justice to resolve a Trade Agreements Act and Sourcing complaint, which alleged that Grainger overcharged the government and illegally relabeled products manufactured in non-trade agreement countries so they could be sold to the U.S. government.
The whistleblower case was unsealed in January 2008 in a federal court in Wisconsin. Grainger said it resolved the complaint to avoid further costly legal fees.” The complaint was initially filed by Brian M. Holbrook, a former district sales manager of government sales at Grainger, in 2006. He worked for Grainger starting in December of 2004.
“We value our reputation with our customers and are committed to operating …
Owens &Minor, Richmond, VA, reported revenue for the second quarter ended June 30, 2008, was $1.79 billion, up 6.9% from the prior-year period. Profit was $23.6 million, an increase of 29%.
For the six months ended June 30, 2008, revenue was $3.55 billion, up 5.4%. Profit for the first half was $47.8 million, up …
Barnes Group Inc., Bristol, CT, aerospace and industrial components manufacturer and distributor, reported second quarter 2008 revenues were up 6% to $382.9 million driven by strong demand in the aerospace manufacturing and aftermarket businesses and international industrial businesses.
Profit was $34.6 million, a 22% increase.
Barnes Aerospace sales were $114.4 million in the second quarter, an increase of 24% from the prior-year period. Second quarter sales reflect growth of 30% in aftermarket sales. Barnes Group reports it remains optimistic about continued growth of the aerospace sector even though industry dynamics including higher fuel prices and recently announced plans to retire older aircraft have created additional levels of caution.”
For years, manufacturers have used the concept of lean to improve efficiencies in their operations. Now distributors are moving forward with their own lean initiatives – looking at ways to reduce costs by improving internal processes. In this article, a dental supplies distributor shares its experience with lean.
At the beginning, going lean seemed so simple to Chuck Cohen, president of Wilkes-Barre, PA-based Benco Dental: Assign someone to identify waste and work with employees to eliminate it.
But when some employees seemed unable to overcome the "We do that already" attitude, he realized it wasn't so simple.
"Lean is the most seductive yet complicated process I've ever been involved in," Cohen says. "It's really easy to do OK at it. It's …
When I started as editor of MDM in 2005, I was consistently writing news articles each quarter on double-digit sales increases. It’s no surprise, given current economic conditions and financial market turmoil, that double-digit growth has been a rarity in recent quarters.
Most distributors focused on North American markets are recording single-digit growth. Those focused solely on construction-related markets have recorded steep declines and net losses -a fundamental change. Manufacturers with business abroad have seen double-digit growth, but when they break it down, North American sales are low single digits, flat or negative. As a result, many distributors and manufacturers are focusing on profitability.
As we wrote recently in MDM, distributors should make up …
Chicago, IL-based Grainger reported sales of $1.8 billion for the second quarter ended June 30, 2008, up 10 percent over the second quarter 2007. Profit increased 8 percent to $113 million. More
The Fastenal Company, Winona, MN, reported sales for second quarter ended June 30, 2008, were $604.2 million, up 16.3 percent over the prior-year period. Profit was up 26.4 percent. Sales for the first six months were up 16 percent from the first six months of 2007. Profit was up 26.2 percent. More
UK-based Wolseley plc, distributor of plumbing and heating products to professional contractors and supplier of ‘
Applied Industrial Technologies, Cleveland, OH, has made one of its largest acquisitions in the U.S. fluid power market with an agreement to buy seven distribution businesses from Fluid Power Resource LLC.
The purchase fits with Applied’s strategy to continue building out its fluid power unit, according to Warren E. Bud”Hoffner, who oversees Applied’s fluid power group.
“It’s just a great fit for Applied, and we’ve always thought that,”Hoffner told MDM. “FPR ran these companies as standalone firms in each local or regional market. That fits very well with how we’re structured.”
The last large acquisition Applied made in the U.S. fluid power market was Spencer Industries Inc., Kent, WA, a regional fluid power distributor with about $65 million in …
Evergreen Consulting CEO Brent Grover recently interviewed Andrew E. Randall, president of TriState Capital Ohio, Cleveland, OH, about distributor relationships with bankers in a tough climate, where credit markets are tight, and financial institutions have become cautious and conservative.
Randall says this environment may continue for another 12 months or so but will create opportunities for banks not affected by current economic challenges to look at well-structured and well-priced opportunities. Randall offered up a recent transaction as an example: a senior debt financing for an acquisition by Supply Chain Equity Partners, a private equity group based in Cleveland, OH, with an exclusive focus on wholesaler-distributors. The transaction typified the type of borrower …
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These select product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Second quarter 2008 is compared with second quarter 2007, and first quarter 2008 with second quarter 2008. Graphics depict trend for that product from the start of 2007.
The idea that a lean operation -one that continually identifies and eliminates wasteful activities to reduce internal costs -can be a more profitable one has long been accepted by manufacturers. Distributors are now starting to apply that idea to their operations. Dr. Perry Daneshgari, president of MCA Inc. and co-author of Lean Operations in Wholesale Distribution, now available from the National Association of Wholesaler-Distributors (www.nawpubs.org), recently spoke with MDM about how the distributor mindset is changing.
MDM: Is lean is something that you’re seeing a lot more of in distribution?
Perry Daneshgari: I see more sparks of interest, but is it being applied more? Not yet, but there …
Material handling equipment manufacturer Columbus McKinnon Corp., Amherst, NY, reported first quarter sales of $151.2 million, an increase of 6.9% over the same period a year ago. Profit was $9.7 million, up 2% from the prior year.
The company also announced an agreement to divest its Univeyor subsidiary, which as a unit reported a loss of $2.1 million for the current quarter.
CEO Timothy T. Tevens said: A key element of our growth strategy has been to drive the top line with investments in new markets around the world. These efforts are paying off with strong product and brand expansion, which is driving double digit growth in international markets. The growth is primarily from emerging economies in Eastern Europe, Asia and Latin America, as well as in the …
Kenosha, WI-based Snap-on Inc., manufacturer and marketer of tools, diagnostics, equipment, software and service solutions for professional users, reported sales of $766.1 million for its second quarter 2008, an increase of 7.6% over second quarter 2007. Profit increased 52.7% to $66.9 million.
Sales included a benefit of $32.4 million from currency translation.
For the first six months, sales totaled $1.49 billion, an increase of 4.9% over the same period a year ago. Profit increased to $123.5 million, up 49%.
Commercial &Industrial Group segment sales of $387.7 million were up $56.1 million, or 16.9%, from prior year, including $25 million of currency translation. Excluding currency translation, sales growth was 9.4%, with strong contributions from …
Milwaukee Gear Co., Glendale, WI, and Treat All Metals Inc., Milwaukee, WI, were acquired by two private equity firms. Terms of the sale to High Road Capital Partners, New York, NY, and Charter Oak Equity LP, Westport, CT, were not disclosed by management in a letter to customers and vendors.
Treat All Metals will continue to operate as a division of Milwaukee Gear instead of as a standalone company. Former CEO Harold Trusky will retire from operations but no other management team changes are expected.
Milwaukee Gear manufactures precision gears and drives for a variety of industries. Treat All Metals provides heat treatment and metal processing, from case hardening to …
Cooper Industries, Ltd., Houston, TX, reported second quarter 2008 revenues increased 18% to $1.72 billion over the same period last year. Profit was $161.9 million, a decrease of 22.6% from second quarter 2007.
Acquisitions contributed 8% to second quarter revenue growth.
For the first six months, sales were $3.27 billion, an increase of 14.3% from the first six months 2007. Profit was $315.3 million, down 7.6% from the prior year.
Electrical Products segment revenues for the second quarter of 2008 increased 19 percent to $1.51 billion, compared with $1.27 billion in the second quarter 2007. Core revenues increased by over 7% with acquisitions contributing close to 9% and currency translation contributing over 2% to the year-over-year growth. …
WESCO International, Inc., Pittsburgh, PA, provider of electrical MRO products, construction materials and advanced integrated supply services, reported sales of $1.59 billion for the second quarter 2008, an increase of 4.6% over second quarter 2007. Profit was $60.1 million, a slight increase over the same period a year ago.
Sales for the six months ended June 30, 2008 were $3.05 billion, a 2.8% increase over the first six months of 2007. Sales growth was 4.6% after adjusting for a previously announced divestiture. Profit for the 2008 year-to-date period was $105 million, a 2.6% decrease from same period last …
Two drug distributors announced increased revenues for their quarters ending June 30, 2008.
San Francisco, CA-based McKesson Corp. reported first-quarter revenues of $26.7 billion, an increase of 9% over the same period a year ago. Profit remained stable at $235 million.
In the Distribution Solutions segment, U.S. pharmaceutical revenues increased 16% while warehouse sales declined 8% for the quarter. Canadian revenues were up 27%, primarily due to new and expanded distribution contracts and a favorable currency impact of 10%. Medical-Surgical distribution revenues were up 6% for the quarter.
Technology Solutions had a revenue increase of 2% for the quarter.
AmerisourceBergen, Valley Forge, PA, announced revenue for third quarter 2008 …
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