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HD Supply White Cap, Costa Mesa, CA, has agreed to purchase OCRO Construction Supply Inc. for $17 million. Headquartered in Livermore, CA, ORCO operates 11 distribution centers and two rebar facilities in California, Arizona and Nevada. The sale is expected to close on June 1, 2009.
HD Supply White Cap has great depth in the western markets where we currently operate and will continue to offer ORCO’s customers high-quality services and a broad assortment of products, which they have come to count on, said Peter Alexander, ORCO’s CEO and president.
ORCO Construction Supply will be integrated into the HD Supply White Cap business and will begin operating under the HD Supply White Cap brand following the closing of the transaction. ORCO …
ORCO Construction Supply’s Deal with HD Supply Read More »
About this report: This is the MDM Public Distributor Report, provided on a quarterly basis to subscribers of Modern Distribution Management. The report is available online only.
Click here to download this report in pdf.
A common theme in public distributors’ earnings conference calls for the second quarter was a lack of visibility into potential conditions for the rest of the year. Overall the sales environment continues to be challenging for our industry,” says Michael Grebe, Interline Brands CEO. “Visibility remains extremely low, and like our distribution peers, we are not at a point where we see a meaningful recovery in the very near term.”
Here is a …
First Quarter 2009 Public Distributor Report Read More »
Many distributors and suppliers have had to trim their work force due to a dramatic decline in demand over the past half-year. But when the economy starts to turn around, distributors will face another challenge: building back up. This article features expert opinion on what to keep in mind.
One of the biggest mistakes companies make in adjusting their work force during down times is cutting too deeply and not being able to recover when the economy rebounds. They are very much focused on the short-run, says Peter Capelli, director of the Center for Human Resources at The Wharton School of the University of Pennsylvania.
This can cost companies in the long-run. In addition to the costs associated with layoffs – severance pay or …
How to Manage Talent for the Upswing Read More »
Both U.S. and Canadian manufacturers experienced a drop in sales in March 2009 according to sales data released by the Power Transmission Distributors Association. Confidence in the market (as measured on a scale of 1 to 10 with 10 being most optimistic) has also eroded, holding a current negative position between 4.6 and 4.9.
Following a negligible increase in sales in February 2009,
Canadian manufacturers’ sales were down 7.9% compared to February 2009. Sales were down 29.0% when compared to the …
PT/MC Manufacturing Sales, Market Confidence Fall In March Read More »
Canadian wholesale sales in current dollars fell 0.6% to $40.5 billion in March. Declining sales in the building materials and machinery and electronic equipment sectors were important factors contributing to this decrease. In terms of the volume of sales, wholesale sales were down 1.3%.
Canadian wholesalers sell to both the domestic and international markets, and are active importers and exporters. The larger decline in the constant dollar sales compared with the current dollar sales in March reflects higher prices paid by wholesalers for imported goods. This was due in part to the depreciation of the Canadian dollar versus the US dollar in March.
In March, four out of seven sectors, accounting for two-thirds of total wholesale sales, posted …
Canadian Wholesale Revenues Fall 0.6% in March Read More »
For the first time in 18 months, strengths among the components used to establish the Leading Economic Index exceeded the weaknesses, according to a report from The Conference Board. At the same time, the Coincident Economic Index and the Lagging Economic Index each fell slightly.
Seven of the ten indicators used for the LEI in the U.S. increased in April, led by increases in stock prices and interest rate spread. The LEI rose 1% to 99.0 in April, the first increase in seven months. For the six months ending in April, the index has fallen 0.6%.
The Conference Board LEI for the U.S. has been generally falling since the middle of 2007, but the pace of its decline has slowed substantially in recent months. With this month’s sharp and widespread increase, the …
Leading Economic Index Posts First Increase In 7 Months Read More »
Avnet, Inc., Tempe, AZ, reported sales of $3.7 billion for the third quarter fiscal 2009 ended March 28, 2009, a decrease of 16.3% over the prior year period. Organic sales were down 22.3%.
Profit declined 83.2% to $18 million. Excluding charges related to restructuring, integration and other special items, profit fell 58.2% to $44.8 million.
Electronics Marketing sales fell 20.1% year over year to $2.1 billion, with declines occurring in all geographic regions.
Technology Solutions sales of $1.60 billion were down 10.8% from the prior year period. While still down, sales in this segment appear to have stabilized, CEO Roy Vallee said. …
Avnet 3Q Sales Decline 16.3% Read More »
HD Supply White Cap, Costa Mesa, CA, has agreed to acquire ORCO Construction Supply in Livermore, CA. ORCO is an independent supplier to construction professionals in California, Arizona and Nevada, operating out of 11 distribution locations and two rebar facilities.
The acquisition of ORCO’s assets provides HD Supply White Cap with an increased ability to provide world-class service to our existing and prospective customers, said Tom Lazzaro, president of HD Supply White Cap.
ORCO Construction Supply will be fully integrated into the HD Supply White Cap business and will begin operating under the HD Supply White Cap brand following the closing of the transaction. …
HD Supply White Cap Agrees To Acquire ORCO Construction Read More »
As the recession rolls on and the focus turns to recovery, an article at WSJ.com points out that maybe things didn’t have to be as bad as they were. Lack of clarity in the supply chain has resulted in supply problems at many levels.
In fact, many companies cut dramatically due to uncertainty in demand when the market slowed; as a result, some cut more than they needed to. In some cases, shipments of goods were decreased more than demand had contracted. Whether production can catch back up when demand rebounds is one question some experts are asking.
Bad information or lack of information can lead to decisions that may not …
Downturn Exacerbated by Bad Information in Supply Chain Read More »
I spoke with David DeLong, author of "Lost Knowledge: Confronting the Threat of an Aging Workforce," for the latest issue of MDM. He shared with me a case study about effective knowledge transfer from the older generation of workers to the younger.
DeLong features a host of case studies on his Web site, www.lostknowledge.com. In one, about manufacturer Boston Scientific, the company faced the retirement of highly skilled workers who were specialists in knitting, weaving and yarn texturizing work on intricate machines that knit or weave special yarn into tube-like grafts. (This plant specialized in manufacturing surgical grafts and fabrics used to treat vascular …
A Case Study on Effective Knowledge Transfer Read More »
Modern Distribution Management has launched a group on the popular business networking Web site, LinkedIn. Join "Modern Distribution Management’s Independent Distributor Network" by clicking here. The group is open to distribution and supply chain professionals, manufacturers who sell through distribution and all professionals interested in the independent distribution channel. We hope you will use the group as a place to network with other distribution professionals and to discuss issues of importance to the distribution channel. We look forward to seeing you there!
MDM is also building a presence on Twitter. If you’d like to follow us there, please visit …
MDM Launches Group on LinkedIn Read More »
Anixter International Inc., Glenview, IL, a global distributor of communication products, electrical and electronic wire & cable, fasteners and other small parts, reported sales for the first quarter ended April 3 were $1.27 billion, down 14% from the year ago quarter. Profit declined 54% to $25.7 million.
Organic sales decreased 7% in the quarter, led by declines in the European OEM supply business which declined 32%. Emerging markets and North American OEM supply posted organic sales growth of 3% and 12% respectively.
Following a very soft finish to 2008, and an extension of those market conditions into the first few days of 2009, we were pleased to see activity levels rebound to a limited degree and then stabilize through the balance of the …
Anixter Sales Decline 14% In 1Q Read More »
The Home Depot, Atlanta, GA, reported sales for the first quarter of fiscal 2009 were $16.2 billion, a decrease of 9.7% from the prior year period. Profit increased 44.4% to $514 million.
Comparable store sales declined 10.2% overall, with comparable sales for U.S. stores down 8.6%.
The increase in profit can be attributed in part to the closure of the EXPO businesses, which contributed $117 million to first quarter operating profits.
At the end of the first quarter, The Home Depot operated 2,238 retail stores, including 1,973 stores in the United States, 178 stores in Canada, 75 stores in Mexico and 12 stores in China. …
The Home Depot 1Q Sales Decline 9.7% Read More »
Housing starts in April were down 12.8% from March and 54.2% below April 2008, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
Starts fell to a seasonally adjusted annual rate of 458,000. Single-family starts were at 368,000, up 2.8% from March. The April rate for units in buildings with five units or more was 78,000.
Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 494,000, 3.3% below March, and 50.2% below April 2008.
Single-family authorizations in April were at a rate of 373,000; this is 3.6% above March. Authorizations of units in buildings with five units or more were at a rate of 103,000 in April.
Privately-owned housing …
Housing Starts Down 12.8% in April Read More »
Kennametal Inc., Latrobe, PA, has signed a definitive agreement to sell its high speed steel drills, related product lines and assets to Chinese manufacturer Top Eastern Drill Co., Ltd. Top-Eastern Drills is a global manufacturer of high speed steel drills and taps.
The transaction includes four facilities and operations specifically related to the product lines located at Evans, Georgia; Clemson, South Carolina; Mexico City, Mexico; and Mississauga, Ontario. Kennametal presently has approximately 400 employees who are located at these facilities or otherwise involved with these product lines.
Kennametal expects to receive $29 million in proceeds from the divestiture and recognize a pre-tax loss on the sale and related pre-tax charges estimated to amount to a …
Kennametal Agrees To Sell Drill Unit To Chinese Co. Read More »
Inflation-adjusted gross domestic product, which grew by a miniscule 1.1% in 2008, will decline 2.9% in 2009 before rebounding to 1.9% growth in 2010, according to the latest Manufacturers Alliance/MAPI Quarterly Economic Forecast.
The GDP forecast for 2009 is lower than the previously anticipated 2.1% decline for this year projected in the February 2009 release.
We are in a severe global recession where manufacturing is taking the brunt of the decline. Fortunately, we are starting to see signs of economic conditions beginning to stabilize, said Daniel J. Meckstroth, Manufacturers Alliance/MAPI chief economist. “We expect that the eventual recovery will be sluggish due to continued deleveraging by consumers as they move away from …
MAPI Report: Economy Showing Signs For 2010 Recovery Read More »
As part of its filing for Ch. 11 bankruptcy protection, Raleigh, NC-based Stock Building Supply will slash an additional 2,220 jobs and close more locations. According to a court filing, the distributor will reject 210 leases where the company has already ceased or plans to cease operations. That number could grow.
In its fiscal year ended July 31, 2008, Stock recorded a $744 million loss. It had $3.5 billion in sales. The distributor filed for Ch. 11 bankruptcy protection May 6, 2009.
The company reported in its filing that it will retain 5,000 jobs, down from 7,220 who are currently employed.
"Without the restructuring and relief provided by the Plan and the additional investments into the business, Stock likely faces a liquidation, which …
Stock Bankruptcy Filing: More Layoffs and Closures to Come Read More »
Illinois Tool Works Inc., Glenview, IL, reported operating revenue fell 25% for the three months ended April 30, 2009. The manufacturer saw a 23% decline in base revenues.
Acquisitions contributed 6% to revenues in the three-month period.
On a segment basis, the Company’s three month moving average percentage change for operating revenues, comprised of base revenues, acquisitions/divestitures and currency translation, is provided below. (% change for 3 months ended April 30, 2009, versus prior-year period)
Industrial Packaging: -35.3%
Power Systems and Electronics: -35.1%
Transportation: -24%
Food Equipment: -16.2%
Construction Products: -35.2%
Polymers and Fluids: -6.7%
All Other: -16.5%
With $15.9 billion …
Illinois Tool Works Sales Down 25% Read More »
Though the unemployment rate continues to rise, other indicators seem to be leveling off.
And the Wall Street Journal’s regular survey of economists has some relatively good news this week. The respondents say it’s possible the recession could be over by this fall.
But, according to WSJ: "The depth of the downturn means it will take years to eat up the slack created by the recession. Nearly half of the economists said it will take three to four years to close the output gap, while more than a quarter say it will take five to six years."
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Veil of Pessimism Lifting from the Economy Read More »
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