January 2009

Modern Distribution Management’s May Inflation Index, which measures a cross-section of industrial supplies, was up 0.48% from the previous month, and up 4.61% from May 2007.
 
Summary of MDM Inflation Index for the past 12 months:
 
May 2008 Index 283.7
April 2008 Index 282.4
March 2008 Index 281.1
February 2008 Index 279.0
January 2008 Index 277.2
December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4
June 2007 Index 271.7

Please click below to view a print-ready pdf of the MDM Inflation Index for May 2008, listing the ten individual product categories that make up the …

Modern Distribution Management’s June Inflation Index, which measures a cross-section of industrial supplies, was up 0.54% from the previous month, and up 4.99% from June 2007.
 
Summary of MDM Inflation Index for the past 12 months:
 
June 20058 Index 285.3
May 2008 Index 283.7
April 2008 Index 282.4
March 2008 Index 281.1
February 2008 Index 279.0
January 2008 Index 277.2
December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4

Please click below to view a print-ready pdf of the MDM Inflation Index for June 2008, listing the ten individual product categories that make up the …

This table highlights key financial metrics and trading multiples for 30 publicly traded distributors in the industrial and building products industries up to Dec. 31, 2008. Download this data below. Also find graphic illustrating median EBIDTA multiples for the same distribution companies.

These materials, prepared by Robert W. Baird & Co. for MDM, are for informational purposes …

Modern Distribution Management’s December Inflation Index, which measures a cross-section of industrial supplies, was up 0.24% from the previous month, and up 7.86% from December 2007.
 
Please click below to view a print-ready pdf of the MDM Inflation Index for December 2008, listing the 10 individual product categories that make up the …

These select product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Fourth quarter 2008 is compared with fourth quarter 2007, third quarter 2008 with fourth quarter 2008, and the full year 2007 with the full year 2008. Graphics depict trend for that product from the start of 2007.
 
The product groups in this report:  

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually. Inflation by Commodity Group: Annual and Fourth Quarter 2008 Read More » Fastenal Starts to See a Slowdown in the Fourth Quarter Building Materials/Construction, Companies, Fasteners, Subscriber Only, Top Distributor Sectors / Lindsay Young Fastenal Company, Winona, MN, reported sales for the year ended Dec. 31, 2008, were $2.34 billion, an increase of 13.5 percent from the prior year. Profit was up to $279.7 million, an increase of 20.2 percent.   While its annual numbers were strong, the distributor said in its earnings call that the fourth quarter slowed significantly.   In October, sales growth was at 11.9 percent; November was at 6.8 percent, and December saw no sales growth. CEO Willard Oberton said that December was the first time in Fastenal’s 42-year history that the distributor saw no growth year-over-year.   Looking forward into 2009, things are very slow, Oberton said. “It’s difficult out there. Right now, looking at our January sales numbers, we … To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually. Fastenal Starts to See a Slowdown in the Fourth Quarter Read More » Commentary: Benchmark Your Financial Capabilities Free, Management, Perspective, Strategy, Subscriber Only / Tom Gale While the lead article’s title – Manage the Panic of 2009 – might seem extreme, it’s important to clarify its real meaning. Reports we’re hearing from distributors in January indicate they are not in panic mode. On the contrary, every distribution company has become very focused by necessity on cost control, created by the panic and instability in financial markets.   I think that’s an important distinction. This isn’t a typical downturn, where a company just needs to reduce costs across departments by a certain percentage until the tide turns. This time a distributor needs to upgrade financial skills.   The traditional financing and cash flow models distributors have used for decades have changed significantly, with much tighter … To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually. Commentary: Benchmark Your Financial Capabilities Read More » Interline Brands Announces Cost Cuts Companies, Facilities Maintenance (MRO), Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff Interline Brands, Jacksonville, FL, a distributor of MRO products, plans to cut its work force, consolidate 10 distribution centers over the next six months and make other moves to cut costs. The distributor says it is seeing adverse conditions across its core end-markets and does not expect to meet its previously issued earnings per share range for the fourth quarter 2008. Interline will be eliminating 85 full-time positions. This reduction and other cost cuts are expected to generate annualized savings of about $12 million. The decision to downsize is never easy to make, and we thank our affected employees for their many important contributions, said CEO Michael Grebe. “However, these actions are necessary to ensure that our cost structure aligns with current … To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually. Interline Brands Announces Cost Cuts Read More » Avnet Sales Down in 2Q Companies, Electrical, Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff Avnet, Inc., Phoenix, AZ, reported sales of $4.27 billion for second quarter fiscal 2009 ended Dec. 27, 2008, a decrease of 10.2% over second quarter fiscal 2008. Excluding the impact of changes in foreign currency exchange rates, sales were down 6.4% for the quarter. Organic sales were down 14.9%.   Profit was $112.3 million, down 21% from the prior year quarter.   "Our second fiscal quarter was unusually challenging as demand weakened through the quarter culminating with lower-than-expected revenue in the month of December, CEO Roy Vallee said. This slowdown was widespread as all three regions and both operating groups contributed to a double digit year-over-year organic revenue decline for the quarter.   “Based on these … To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually. Avnet Sales Down in 2Q 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. 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