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July 2009

Black & Decker Sales Fall 27% in Second Quarter

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

The Black & Decker Corp., Towson, MD, reported sales fell 27% in the second quarter 2009 to $1.2 billion. Profit was $38.3 million, down from $96.7 million in the prior-year period. The company reported extremely weak" demand in its end-markets for the quarter.

Sales in the company’s Power Tools and Accessories segment fell 21% in the second quarter. U.S. Industrial Products Group sales fell 30% due to declines in both the residential and non-residential areas.

Sales increased at a high single-digit rate in the U.S. Consumer Products Group, with strong shipments of lawn and garden products and the new Porter-Cable line outweighed decreases in other categories.

European sales decreased 30%, similar to the first-quarter trend, with a particularly sharp decline in Eastern Europe. …

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Builders FirstSource Sales Down 37.8% in Second Quarter

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

Dallas, TX-based Builders FirstSource, Inc., supplier and manufacturer of structural and related building products for residential new construction in the U.S., reported sales for the second quarter ended June 30, 2009, were $175.5 million, down 37.8% from $282.3 million in the prior-year period. Sales volume dropped 33%. Builders FirstSource noted a gain from multifamily and light commercial sales.

The net loss for the quarter was $22.6 million.

The severity and prolonged nature of the housing downturn has forced substantial capacity reduction within our industry. Several of our largest competitors filed for bankruptcy protection during the quarter, and we were forced to make the tough decision to discontinue our Ohio operations," said CEO Floyd Sherman. "This decision was not …

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WESCO Sales Fall 27% in Second Quarter

Companies, Electrical, Free, News, Subscriber Only, Top Distributor Sectors /

Electrical MRO and construction materials distributor WESCO International Inc., Pittsburgh, PA, reported sales for the second quarter 2009 were $1.2 billion, compared with $1.5 billion in the second quarter 2008, a decrease of 27%.

Profit for the second quarter was $26.4 million, about half that of the comparable quarter 2008.

"We are taking quick and decisive actions to manage the company through the global economic downturn," said John J. Engel, senior vice president and COO. "WESCO is currently facing weaker end market demand across most of our served markets. We continue to focus our energies on a series of sales and cost reduction programs and LEAN productivity initiatives to efficiently serve our customers and take market share in this challenging environment."

WESCO …

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Diversified Manufacturer 3M Sales Down 15.1% in 2Q

Companies, Free, News, Subscriber Only /

Diversified manufacturer 3M, St. Paul, MN, reported second-quarter sales were $5.7 billion, a decline of 15.1% from the same period a year ago. Profit declined 17.1% to $783 million.

Local-currency sales including acquisitions decreased 9.4%, currency translation effects reduced sales by 5.5% and divestitures reduced sales by 0.2%.

Year-to-date, sales were $10.8 billion, down 18.1%. Profit decreased 32.7% to $1.3 billion.

Industrial and Transportation
Second-quarter sales for the Industrial and Transportation segment were $1.7 billion, down 15.3% year-on-year in local currency. Acquisitions contributed a 3.3% benefit; currency impacts reduced sales by 5.4%.

Sales improved by 9.2% when compared to first quarter of 2009.

Display and Graphics
Display and …

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Reliance Steel Hit by Drop in Carbon Steel Prices

Free, Metals Service Centers, News, Subscriber Only, Top Distributor Sectors /

Reliance Steel & Aluminum Co., Los Angeles, CA, reported its first quarterly net loss since becoming a public company in 1994. In the second quarter, Reliance had a net loss of $5.8 million, compared with profit of $156.6 million in the 2008 quarter, and $20.1 million for the first quarter of 2009.

Sales in the second quarter were $1.2 billion, down 41% from the prior-year period, and down 20% from the first quarter.

(The 2009 second quarter financial results include in cost of sales a pre-tax LIFO income amount of $75 million, compared with a pre-tax LIFO expense amount of $40 million for the 2008 second quarter, and $75 million of LIFO income for the 2009 first quarter.)

"The 2009 second quarter was the most difficult operating environment we have ever experienced at our …

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Myers Industries Records $1.4M Loss in 2Q

Free, News, Subscriber Only, Top Distributor Sectors /

Myers Industries, Inc., Akron, OH, reported sales for the second quarter were $173.2 million, a decrease if 19% from second quarter 2008. The company recorded a loss of $1.4 million for the period, compared to profit of $2.9 million the prior year.

Weak end markets and demand continued to result in volume declines across segments. Customers maintained cautious spending – further reducing inventory levels, purchasing on an as-needed basis, deferring major capital investments and conserving cash. In the Distribution segment, sales of supplies and equipment remained weak due to continued slow demand for both tire and vehicle service.

For the six-months ended June 30, 2009, sales were $363.3 million, down 21.7% from the same period a year ago. Profit decreased 72% to $3.7 …

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3M Acquires ACE Product Line

Companies, Finance, Free, Mergers & Acquisitions, News, Safety Products, Subscriber Only, Top Distributor Sectors /

3M has acquired the ACE-branded elastic bandage and supports product lines and related brands, and thermometer product line from BD (Becton, Dickinson and Company). Terms of the transaction were not disclosed.

"ACE is a great extension of our consumer products portfolio," said Dr. Gabi Sabongi, vice president, research and development, and new business ventures of 3M Consumer and Office Business. "ACE brings to our company an iconic brand with admirable consumer loyalty. ACE and its related brands also broaden our channels for consumer products, including the sporting goods …

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Columbus McKinnon Posts $2.4M Loss in First Quarter

Free, News, Subscriber Only, Top Distributor Sectors /

Columbus McKinnon Corp., Amherst, NY, reported sales for the first quarter ended June 30, 2009, were $119.0 million, down 21.3% from the prior-year same period. The manufacturer of material handling products recorded a loss of $2.4 million for the period, compared to profit of $9.7 million the prior year.

Restructuring charges of $5.8 million, associated with a broad reorganization combined with the consolidation of the North American hoist and rigging sales and marketing functions, were recorded during the first quarter of fiscal 2010.

"As expected, our first quarter sales reflect the full impact of the decline in industrial activity around the world," said Timothy T. Tevens, president and CEO. "We are reducing our manufacturing footprint, improving efficiencies and implementing a …

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MDM News Digest 3914

Free, Subscriber Only /

Atlanta, GA-based Genuine Parts Company reported sales for the second quarter ended June 30, 2009, were $2.5 billion, down 12% from the second quarter 2008. Profit for the quarter was $103.6 million, a decrease of 22%.For the six months ended June 30, 2009, sales were $5 billion, down 11% from the same period in 2008. Profit was $192.8 million, a decrease of 25%. More

W.W. Grainger, Chicago, IL, reported second quarter sales of $1.5 billion, down 13% from the second quarter 2008. Profit for the quarter fell 18% to $92 million.Daily sales decreased 15% in April, 10% in May and 13% in June.

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Airgas Sales Declines 12% in 1Q

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

Airgas, Inc., Radnor, PA, a U.S. distributor of industrial, medical, and specialty gases, and welding, safety, and related products, reported sales for the first quarter ended June 30, 2009, were $1.0 billion, down 12% from the prior year. Profit declined 20.4% to $54.8 million.

Same-store sales declined 17%, with hardgoods down 27% and gas and rent down 10%. Acquisitions contributed 5% sales growth in the quarter.

"Sales were consistently at the low end of our expectations throughout the quarter, and demand continues to be weak across most customer segments," CEO Peter McCausland said. "Manufacturing has shown the deepest declines, analytical and utilities have shown some resilience, and our medical sales posted positive …

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Cooper Industries Second-Quarter Sales Fall 26%

Electrical, Free, News, Subscriber Only, Top Distributor Sectors /

Manufacturer Cooper Industries, Houston, TX, reported second quarter 2009 sales were down 26% to $1.27 billion, compared with $1.72 billion in the prior-year period. Profit was $89.3 million, down from $161.9 million reported in the 2008 second quarter.

In the first six months of 2009, sales were $2.53 billion, a 23% decrease from the prior-year period. Profit was $189.4 million, down from $315.3 million in the prior-year first six months.

"In the second quarter, while our book-to-bill ratio stabilized, we did not experience the normal seasonal increase in revenues. As a result, our revenue for the quarter was at the low end of our forecast; however, our intense cost management across the company allowed us to deliver earnings per share at the top end of the forecast," said Cooper …

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Watsco Second Quarter Sales Down 21%

Companies, Free, HVACR, News, Plumbing Products & PVF Distribution, Subscriber Only, Top Distributor Sectors /

Watsco, Inc., Coconut Grove, FL, an independent distributor of air conditioning, heating and refrigeration products, reported sales for the second quarter 2009 were $405 million, down 21% from second quarter 2008. Profit declined 37.5% to $16.3 million.

For the first six months, sales were $696 million, a 22% decline over 2008. Profit decreased 55.2% to $15.1 million.

Lower demand due to economic conditions, new housing declines and a late start to the cooling season offset gains from a richer mix of high-efficiency air conditioning systems.

"We are pleased to see the continued trend toward high-efficiency and environmentally-friendly air conditioning systems, especially in this current economic backdrop," said Albert H. Nahmad, president and CEO. "We experienced higher unit …

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Hubbell Agrees To Buy Burndy

Electrical, Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

Electrical and electronics manufacturer Hubbell Inc., Orange, CT, has agreed to acquire FCI Americas, Inc., more commonly known as Burndy, for$360 million in cash, subject to certain standard adjustments.

Burndy, Manchester, NH, is a North American manufacturer of connectors, cable accessories and tooling serving utilities, commercial and industrial customers. In 2008, Burndy generated sales of approximately $225 million with operating profit margins in the high teens. Products are primarily sold through distributors, the same channel utilized by Hubbell.

"Burndy has earned great respect over the years from distributors and end users and the brand is a natural complement to Hubbell’s positioning," said Timothy H. Powers, president and CEO of Hubbell. "Their emphasis on lean …

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Carlisle Companies 2Q Sales Fall 28%

Free, News, Subscriber Only, Top Distributor Sectors /

Carlisle Companies Inc., Charlotte, NC, reported net sales from continuing operations of $618.5 million for the second quarter 2009, a 28% decline from the same period a year ago. Profit improved 2.2% to $55.5 million. Organic sales decreased 28% with sales down across all segments.

Year-to-date, sales were $1.12 billion, down 25% from the first half of 2008. Profit was $62.1 million, compared to a loss of $8.3 million for the same period a year ago.

The Construction Materials segment reported second quarter 2009 sales of $314.4 million, a decline of 29% for the same period in 2008. The decrease in sales was across all product lines and is consistent with declines in the overall construction industry.

Applied Technologies had second quarter sales of $103.1 million, down 20% …

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United Rentals Acquires Leasco Equipment Services

Building Materials/Construction, Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

United Rentals, Inc., Greenwich, CT, acquired Leasco Equipment Services, Inc., a Marietta, Ohio-based rental company that serves the industrial sector with a focus on power generation, petroleum, chemical, and pulp and paper companies.

"Leasco is a company with strong customer relationships built on 20 years of expertise in industrial rentals, and we are delighted that its senior management will be joining our team," CEO Michael Kneeland said. "This acquisition advances our strategy to expand our company’s presence in the industrial segment, where our industry-leading geographic footprint, rental fleet size and scope, and commitment to exceptional customer service provide us with a competitive advantage."

United Rentals, Inc. provides rental equipment through an integrated network …

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Thomas & Betts Sales Drop 28.1% in Second Quarter

Electrical, Free, News, Subscriber Only, Top Distributor Sectors /

Thomas & Betts Corp., Memphis, TN, reported sales of $461.0 million for the second quarter 2009, down 28.1% year over year. Profit declined 84.7% to $22.7 million.

"2009 has proven to be considerably more challenging than anticipated, with continued pressure in all of our key markets," CEO Dominic J. Pileggi said. "The lack of any meaningful improvement in credit availability has crippled capital investment in the global industrial base and severely curtailed spending on construction projects. In addition, we have not yet seen any notable impact from government-initiated stimulus spending.

"The result is an unprecedented decrease in demand. While we have responded aggressively by reducing headcount, freezing wages and cutting discretionary spending, it has not been possible to …

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ITW Sales Down 25.5% in 2Q

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

Illinois Tool Works Inc., Glenview, IL, reported operating revenue for the second quarter 2009 were $3.4 billion, down 25.5% from second quarter 2008. Profit declined 66.6% to $176.6 million. Base revenues declined 22.2%, with North American base revenues decreasing 26.8% and international base revenues declining 17.3%.

Year-to-date, the diversified industrial manufacturer reported sales of $6.5 billion, down 24.7% from same period a year ago. Profit declined 83.5% to $137.2 million.

The company incurred $65 million of restructuring charges in the quarter, bringing the year-to-date total to $98 million. An additional $50 million to $70 million of restructuring charges are expected in the second half of 2009.

Worldwide revenues for the Power Systems and Electronics segment declined …

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How Much Is Too Much When It Comes to Increased Workloads?

Free, Human Resources in Wholesale Distribution, Operations, Subscriber Only /

In today’s economy, workers are often being asked to do more, whether it is helping with standard maintenance around the building or even reviewing processes to improve productivity (Read some distributors’ approach to this in Keeping Layoffs to a Minimum.). But, how much is too much?

Jon Gordon, author of the new book Training Camp: What the Best Do Better Than Everyone Else, says it’s hard to do too much. While acknowledging that everyone needs the "occasional break," he advises employees, "Make sure that when others are sleeping, you are working."

Not everyone shares his level of enthusiasm for taking on ever growing workloads. Anna Wells, editor of IMPOMag, addressed this issue in a …

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Chicago Fed National Activity Index Improves In June

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

The Chicago Fed National Activity Index was -1.80 in June, up from -2.30 in May. All four broad categories of indicators continued to make negative contributions to the index, with employment and housing-related indicators accounting for much of the weakness in June.

The three-month moving average, CFNAI-MA3, was -2.12 in June, up from -2.65 in the previous month. June’s CFNAI-MA3 suggests that growth in national economic activity was well below its historical trend. With regard to inflation, the amount of economic slack reflected in the CFNAI-MA3 indicates low inflationary pressure from economic activity over the coming year.

The increase in the index was primarily due to the production and income category of indicators. This category made a smaller negative contribution to the …

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Pentair 2Q Sales Decline 23%

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

Pentair, Inc., Minneapolis, MN, reported second quarter sales of $694 million, a decrease of 23% compared with second quarter 2008. Profit declined 77% to $31.9 million.

Year-to-date, sales were $1.33 billion, a decline of 23.2% over the prior year. Profit fell 73.1% to $49.1 million.

"Overall we continue to make tremendous progress against our cost actions as well as to drive strong free cash flow generation. While a few of our markets are showing signs of improvement, most continue to remain soft, as expected," CEO Randall J. Hogan says.

The Water Group delivered $487 million in sales, an 18% decline year-over-year. Sales were down 17% excluding the formation of the Pentair Residential Filtration business with General Electric’s (GE) Water and Process Technologies unit, which …

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