November 2008 - Page 5 of 5 - Modern Distribution Management

November 2008

Lessons from Harley-Davidson Motor Company

Harley-Davidson Motor Company's former director of communications Ken Schmidt told participants at the Power Transmission Distributors Association annual Industry Summit this past week that they cannot compete successfully if they are doing business exactly the same way as their competitors are.
 
Everyone says they offer the best quality, reliability and service. Who doesn't?" he asked. "From my perspective, competing with words like quality and reliability is next to impossible."
 
The key in his mind, however, was simple: People do business with people they like or with people they were referred to by people they like. Schmidt argues that customers don't make logical, rational decisions, but instead their decision to do business with you starts in their gut. So, ...

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Manufacturing Contracts in October

Manufacturing contracted in October, according to the the nation's supply executives in the latest Manufacturing ISM Report On Business.
 
The PMI indicates a significantly faster rate of decline in manufacturing when comparing October to September. According to ISM, it appears that manufacturing is experiencing significant demand destruction as a result of recent events, with members indicating challenges associated with the financial crisis, interruptions from the Gulf hurricane, and the lagging impact from higher oil prices.
 
This is the lowest level for the PMI since September 1982 when it registered 38.8%. In the report, inflationary pressures dissolved as the Prices Index fell to 37%, the lowest since December 2001 when it registered 33.2%. Export orders also ...

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Barnes Group Sales Down 6.5% in 3Q

Barnes Group Inc., Bristol, CT, an international aerospace and industrial components manufacturer and logistical services company, reported third quarter 2008 profit of $28.9 million, an 4.6% increase over the prior year third quarter. Sales declined 6.5% for the quarter to $337 million.
 
For the nine months ended Sept. 30, 2008, sales increased 2.6% to $1.1 billion in a year-over-year comparison. Profit for the period was $97 million, up 15.9%.
 
Barnes Distribution sales dropped 6.4% to $123.5 million in the third quarter of 2008. Organic sales decreased $9.6 million, or about 7%. Lower sales were driven by softening in the North American transportation and manufacturing-related segments, and lower organic sales in Europe.
 
Operating profit for the ...

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AMETEK Acquires Muirhead Aerospace

AMETEK, Inc., Paoli, PA, has acquired U.K.-based Muirhead Aerospace Limited, a manufacturer of motion technology products and a provider of avionics repair and overhaul services for the aerospace and defense markets. Muirhead Aerospace is a subsidiary of Esterline Technologies Corporation, and has estimated 2008 sales of $54 million.
 
Muirhead Aerospace expands AMETEK's penetration in motion control products for the aerospace and defense markets, including actuators and other specialized linear motors, complementing our existing technical motor capabilities,"said Frank S. Hermance, AMETEK CEO.
 
Muirhead Aerospace will become a part of AMETEK's Aerospace &Defense division, which supplies engine and aircraft sensors and monitoring systems; data acquisition units; ...

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Bosch Rexroth to Acquire German Manufacturer

Bosch Rexroth AG has agreed to purchase Germany-based Interlit Joistgen GmbH, a developer of systems for cooling and lubrication. Additionally, Bosch Rexroth has agreed to acquire the associated German production company MSG Maschinen- und Stahlbau GmbH. Terms of the agreement were not disclosed.

With the acquisition of the two companies, we are strengthening our business with the machine tool industry and are reacting to the increased customer demand for single-source complete solutions," said Albert Hieronimus, chairman of the Executive Board for Bosch Rexroth AG.

In 2007, Interlit Joistgen had turnover of over €13 million with 20 employees. MSG's turnover was €7 million euros, with 80 employees.

Bosch Rexroth is in more than 80 ...

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SYSCO Sales Up 5% in 1Q

Houston, TX-based Sysco Corp. reported sales for the first quarter of fiscal 2009 ended Sept. 27, 2008, were up 5% to $9.9 billion from the first quarter 2008. Profit was $276 million, up from $266 million in the first quarter 2008.
 
Our operating companies continued to generate impressive results in the midst of a prolonged and difficult business environment," said Richard J. Schnieders, Sysco's CEO.
 
Food cost inflation, as estimated by the change in Sysco's cost of goods, was 8.3% for the quarter.
 
Sysco operates 180 distribution facilities serving more than 400,000 customers. For the fiscal year 2008 that ended June 28, 2008, the company had more than $37 billion in ...

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