2008

Lessons from Harley-Davidson Motor Company

Free, Management, Strategy, Subscriber Only / Lindsay Young

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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Parker Hannifin Acquires Aqua Pro

Companies, Finance, Free, Mergers & Acquisitions, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors / MDM Staff

Parker Hannifin Corp., Cleveland, OH, a manufacturer of motion and control technology, has acquired Aqua Pro, Inc., a manufacturer of reverse osmosis filtration systems for military, commercial and pleasure marine applications. Aqua Pro sales for fiscal 2008 were $33 million. Results will be reported as a component of Parker’s Industrial North America segment. Terms of the acquisition were not disclosed.

With manufacturing centers in Gardena and San Fernando, California, Aqua Pro does business as Village Marine Tec and Offshore Marine Laboratories. Sales and service locations are located in California, Florida, Hawaii, Virginia, and Washington. The company sells to Original Equipment Manufacturers including boat and ship builders, independent distributors, U.S. military …

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Barnes Group Sales Down 6.5% in 3Q

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

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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Interline Brands Sales Down 3.8% in 3Q

Companies, Facilities Maintenance (MRO), Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff

Interline Brands, Jacksonville, FL, distributor and direct marketer of MRO products, reported sales for the third quarter 2008 were down 3.8% to $317.5 million from the 2007 period. Profit was $13.7 million, down from $15.9 million in the prior-year period.

Interline’s facilities maintenance end-market, which comprised 70% of sales, declined 2.4% during the third quarter on an average daily sales basis, and declined 3.7% on an average organic daily sales basis. The pro contractor end-market, which comprised 19% of sales, declined 10.1% in the quarter and the specialty distributor end-market, which comprised 11% of sales, declined 3.6% for the quarter.

Sales in Interline’s recently integrated AmSan brand grew by roughly 3.8% on an average organic daily sales …

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WinWholesale Opens Seattle Windustrial

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

WinWholesale Inc., Dayton, OH, has opened Seattle Windustrial in Kent, WA, to provide mechanical contractors from Olympia to Bellingham with a complete line of pipes, valves, fittings and accessories. The new company provides counter sales and delivery service.

Mike Baker is president of Seattle Windustrial. He joined WinWholesale in 1996 and previously was president of Portland Windustrial in Oregon and Elko Windustrial in Nevada.

WinWholesale Inc. is a leading distributor of domestic and industrial supplies and materials. The privately-held company consists of more than 470 wholesaling corporations in which WinWholesale is an equity partner, and also Noland Company, a wholly-owned subsidiary with nearly 100 locations. …

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AMETEK Acquires Muirhead Aerospace

Finance, Free, Mergers & Acquisitions, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors / MDM Staff

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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Manufacturing Contracts in October

Economic Trends, Free, News, Research & Analytics, Subscriber Only / MDM Staff

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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Bosch Rexroth to Acquire German Manufacturer

Finance, Free, Mergers & Acquisitions, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors / MDM Staff

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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Parker Hannifin Acquires EmiTherm Sdn Bhd

Companies, Finance, Free, Mergers & Acquisitions, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors / MDM Staff

Parker Hannifin Corp., Cleveland, OH, a manufacture in motion and control technologies, has acquired Malaysia-based EmiTherm Sdn Bhd, a provider of electromagnetic interference (EMI) shielding and thermal management products. Terms of the transaction were not disclosed.

EmiTherm will be integrated into the Chomerics Asia-Pacific Division, a unit of Parker’s global Seal Group.

EmiTherm enjoys a strategic footprint in Malaysia, enabling us to effectively serve our customers throughout the region. The acquisition of EmiTherm provides us with strategic advantage in this vital electronics manufacturing region, offering global customers access to products and efficient supply chain management,” Heinz Droxner, president of Parker’s Seal Group, …

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United Stationers Sales Up 12% in 3Q

Companies, Free, News, Operations, Paper Products & Packaging Distribution, Subscriber Only, Top Distributor Sectors / MDM Staff

United Stationers Inc., Deerfield, IL, master distributor of business, janitorial/breakroom and industrial products, reported sales of $1.3 billion for the third quarter 2008, an increase of 12% over the prior year quarter. Profit increased 20% to $33.1 million.

The December 2007 acquisition of ORS Nasco contributed 7% to the growth rate. Product category sales were up nearly 15% in janitorial/breakroom, up 2% in technology, and down 10% in furniture. Traditional office products grew 3%, driven by a significant increase in cut sheet paper.

Sales for the nine months ended Sept. 30, 2008, were $3.8 billion, up 8.9% from the same period last year. Year-to-date profit declined 3.8% to $75.9 …

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DXP 3Q Sales Up 75.1%

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

DXP Enterprises, Inc., Houston, TX, reported third quarter sales were $186.9 million, up 75.1% from the third quarter 2007. Profit increased 56.9% to $7 million. Businesses acquired in 2007 and 2008 contributed $65.7 million to quarterly sales.

Profit for the nine months ended Sept. 30, 2008, was $18.8 million, up 62% from the prior year period. Sales increased 97.0% to $543.2 million.

DXP Enterprises, Inc. is a distributor of products focused on pumping, integrated supply and …

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Kaman Sales Up 21.9% for 3Q

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

Kaman Corp., Bloomfield, CT, reported sales of $335.1 million for the third quarter ended Sept. 26, 2008, an increase of 21.9% from the prior-year period. Profit from continuing operations was $13.5 million, an increase of 43.6% from the third quarter 2007.

For the first nine months of 2008, profit from continuing operations increased 3.6% to $28.5 million, as compared to the same period the prior year. Sales were $937.2 million, an increase of 15.2%.

The Industrial Distribution segment reported third quarter sales of $204.3 million, an increase of 14.7% from a year ago. Organic sales growth in the quarter was 7.1%, with the remaining growth coming from the acquisition of Industrial Supply Corp. during the second quarter. The Industrial Distribution segment’s …

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Huttig Reports $7.7 million Loss for 3Q

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

Huttig Building Products, Inc., St. Louis, MO, a domestic distributor of millwork, building materials and wood products, reported sales for the third quarter ended Sept. 30, 2008, declined 22% to $182.8 million in a year-over-year comparison. The company reported a loss of $7.7 million, compared to a loss of $0.1 million in third quarter 2007.

Third quarter sales continued to be impacted by the 32% year-over-year decline in average annualized housing starts for the quarter, to approximately 0.88 million, from 1.30 million in the 2007 third quarter. Operating results reflected $2.0 million of branch shut down costs and related inventory write down and liquidation charges associated with the closing of the Springfield, MO and Fredericksburg, VA branches.

Despite …

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BlueLinx Reports Loss for 3Q

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

BlueLinx Holdings Inc., Atlanta, GA, a distributor of building products in North America, reported a net loss of $2.6 million for the third quarter ended Sept. 27, 2008, compared with profit of $0.9 million in the year-ago period. Sales declined 28.5% to $727 million.

The overall third-quarter unit volume decline of 33% was mainly due to lower unit volumes in both structural and specialty products driven predominately by a 33% decline in housing starts relative to year ago levels.

For the nine months ended Sept. 27, 2008, net loss totaled $6.6 million on revenues of $2.28 billion, compared with profit of $6.1 million on revenues of $3.06 billion a year ago. …

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Owens & Minor 3Q Sales Improve 7.3%

Free, News, Pharmaceutical & Health Care, Subscriber Only, Top Distributor Sectors / MDM Staff

Owens & Minor, Richmond, VA, reported sales of $1.81 billion for the third quarter ended Sept. 30, 2008, up 7.3% from the third quarter of 2007. Profit increased 19.4% to $25.3 million.

For the nine months ended Sept. 30, sales were $5.36 billion, an increase of 6.1% in a year-over-year comparison. Profit improves 45.5% to $73.1 million.

Owens &Minor, Inc., is a distributor of national name-brand medical and surgical supplies and a healthcare supply-chain management company. …

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Sealed Air Sales Up 5% in 3Q

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

Sealed Air Corp., Elmwood Park, NJ, sales for the third quarter of 2008 increased 5% to $1.22 billion. Sales for the nine-month period increased 8% to $3.68 billion, compared with $3.4 billion for the same period in 2007.

In the third quarter, resin costs peaked and the North American and European economic environment deteriorated,” said William V. Hickey, president and CEO. “Despite these conditions, our food packaging and medical businesses continued to show stable sales performance in the third quarter and year-to-date. Our protective packaging business was more affected by the economy, and unit volumes declined in the quarter, consistent with manufacturing output, shipments and retail sales.

“To offset peak resin costs, we continued to implement price …

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United Rentals Sales, Profit Drop in 3Q

Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff

United Rentals, Inc., Greenwich, CT, reported third quarter sales of $873 million, down 11.8% from the third quarter 2007. Rental revenue accounted for $677 million. Profit declined 33.9% to $74 million. Continued softness in the company’s end market were the primary factor in the decline.

For the first nine months, the company reported sales of $2.5 billion, down 11.3% from the prior year. Profit was down 28.7% to $149 million. The decline primarily reflects a softening construction environment as well as the previously announced second quarter $14 million after-tax charge in anticipation of the September SEC settlement. …

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HD Supply Facilities Maintenance: Switch to a New Technology Platform

Companies, Free, Subscriber Only, Technology / Jenel Stelton-Holtmeier

What happens when a company operating on a customized legacy system sells part of the business?

HD Supply Facilities Maintenance learned the answer quickly after being sold by The Home Depot last year. In a recent article from Supply Chain Management Review, HD Supply Facilities Maintenance’s director of e-business Mark Linder writes about how the company had six months to set up its own system and transition customers to the new format.

The HD Supply case study shows how having the right partners -in this case, technology company Hubspan -can help foster success in such a transition. The two companies worked together to identify HD Supply’s needs and how Hubspan could meet those needs in …

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Translating New Sales Incentive Plans Into Practice

Free, Sales & Marketing, Subscriber Only / Lindsay Young

In this era of uncertainty, how to best incentivize a sales force is likely top of mind for many distributors. A recent article at inc.com talks about the sins of commissions,” and how sometimes, incentive plans devised in the corporate office don’t always translate on the ground floor level.

Here’s the link to that article.

The author quotes Harvard Business School professor Robert Austin, author of Measuring and Managing Performance in Organizations. He says that when you try to measure people’s performance, you must take into account how they will react. A quote from …

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Grainger Taps New President of Grainger Industrial Supply

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

Chicago, IL-based W. W. Grainger, Inc. has appointed Michael A. Pulick, Senior Vice President for Customer Service, to Senior Vice President and President, Grainger Industrial Supply, effective Nov. 1, 2008.

Pulick is replacing Y.C. Chen, 61, who will stay on in a special advisory role with the company. Pulick joined Grainger in 1999 from General Electric.

Grainger will also establish a global supply chain function under Senior Vice President D.G. Macpherson, effective immediately. This new function will provide global planning, coordination and specialized expertise to the supply chain organizations in all of Grainger’s business units. The initial focus will be on global supply chain architecture, procurement and supply chain talent management. Reporting to …

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Lessons from Harley-Davidson Motor Company

Parker Hannifin Acquires Aqua Pro

Barnes Group Sales Down 6.5% in 3Q

Interline Brands Sales Down 3.8% in 3Q

WinWholesale Opens Seattle Windustrial

AMETEK Acquires Muirhead Aerospace

Manufacturing Contracts in October

Bosch Rexroth to Acquire German Manufacturer

Parker Hannifin Acquires EmiTherm Sdn Bhd

United Stationers Sales Up 12% in 3Q

DXP 3Q Sales Up 75.1%

Kaman Sales Up 21.9% for 3Q

Huttig Reports $7.7 million Loss for 3Q

BlueLinx Reports Loss for 3Q

Owens & Minor 3Q Sales Improve 7.3%

Sealed Air Sales Up 5% in 3Q

United Rentals Sales, Profit Drop in 3Q

HD Supply Facilities Maintenance: Switch to a New Technology Platform

Translating New Sales Incentive Plans Into Practice

Grainger Taps New President of Grainger Industrial Supply

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