2009 - Page 27 of 57 - Modern Distribution Management

2009

Anixter Second Quarter Sales Decline 25%

Anixter International Inc., Glenview, IL, a global distributor of communication products, electrical and electronic wire & cable, fasteners and other small parts, reported second quarter sales of $1.2 billion, a decline of 25% from second quarter 2008. Organic sales were down 19%. The company posted a loss of $89.8 million for the period, compared to profit of $1.7 million the prior year.

Year-to-date, sales were $2.5 billion, a decline of 19% from 2008. Loss for the first six months was $64.1 million, compared to profit of $120.8 million the prior year.

Sales declines were experienced in all end-markets, as well all geographic segments. Reduced sales volumes, lower copper prices and foreign exchange contributed to the declines. …

Anixter Second Quarter Sales Decline 25% Read More »

Hexcel Corp 2Q Sales Drop 22.9%

Hexcel Corp., Stamford, CT, reported sales for the second quarter of 2009 were $277.3 million, 22.9% lower than second quarter 2008. Profit declined 37.1% to $16.8 million.

Year-to-date, sales were $584.6 million, down 17% from the first half of 2008. Profit was down 19.4% to $40.2 million.

"While we have limited ability to influence short term sales, we are focused on what we can control: our own cost structure, operational efficiency and cash flow," CEO David Berges said. "This quarter we continued to reduce headcount, controllable costs, capital expenditures and inventories."

In the Industrial segment, sales of $64.8 million for the second quarter of 2009 were down 24.5% in actual dollars (15.6% in constant currency) over last year due primarily to wind energy and automotive …

Hexcel Corp 2Q Sales Drop 22.9% Read More »

Crane Co. Sales Down 21% in Second Quarter

Crane Co., Stamford, CT, a diversified manufacturer of highly engineered industrial products, reported second quarter sales of $545.5 million, down 21% from second quarter 2008. Profit declined 53% to $27.8 million.

The company eliminated 270 positions during the quarter, bringing total headcount reductions to 1,900, or 16%, since year end 2007. Additional reductions are expected in the second half of the year.

Year-to-date, sales were $1.1 billion, down 20% from 2008. Profit declined 52% to $51.1 million.

Segment Results
Sales in the Aerospace & Electronics segment declined 11% during the second quarter to $147 million, a result of significant declines in demand in the Aerospace Group. Demand in Electronics improved slightly during the period.

Engineered Materials …

Crane Co. Sales Down 21% in Second Quarter Read More »

Timken May Sell Needle Roller Bearings Business

The Timken Company, Canton, OH, is in advanced discussions regarding the potential sale of its Needle Roller Bearings Business. In a press release, the company said: “There can be no assurance that a definitive agreement will be reached, nor that a sale, which would be subject to certain closing conditions, will be completed.”

Timken, a manufacturer of power transmission products, had sales of $5.7 billion in 2008, and operations in 26 …

Timken May Sell Needle Roller Bearings Business Read More »

Saint-Gobain Sales Fall 15.5% in First Half of 2009

The Saint-Gobain Group, Courbevoie, France, reported sales for the first half of 2009 were €18.7 billion (US$26.6 billion), down 15.5% from the first half of 2008. Profit declined 88.1% to €128 million (US$182.2 million).The group saw negative organic growth of 15.5% for the period.

All of the group’s business sectors posted declines.

The continued decline of both construction and industrial markets in the US and Western Europe, as well as in most Asian and emerging countries, contributed to the steep declines in Building Distribution and Construction Products.

Sales in the Construction Products segment declined 15.3% on a like-for-like basis. Increased prices failed to offset the continuing fall in sales volumes, particularly in Interior Solutions, which fell …

Saint-Gobain Sales Fall 15.5% in First Half of 2009 Read More »

Wolseley Announces Plans for Further Business Closures

UK-based Wolseley plc, distributor of plumbing and heating products to professional contractors and supplier of building materials, reported revenues from continuing operations were down 1.5% – down 16% on a constant currency basis – to £13.25 billion (US$21.86 billion). Trading profit from continuing operations was down 47%.

The company has completed its review of the Central and Eastern European markets, and has decided to focus on countries in that region where it has built sufficient scale, established leading market positions and can deliver an appropriate financial return. As a result, Wolseley decided to sell its Belgium, Slovakin and Czech Republic businesses. It will retain a presence in Switzerland, Austria, Luxembourg, Denmark, Holland and Italy.

Action also has …

Wolseley Announces Plans for Further Business Closures Read More »

Monthly Wholesale Trade: Sales and Inventories for May 2009

May 2009 wholesale revenues were $311.3 billion, up 0.2 percent from the revised April level, but down 19.9 percent from the May 2008 level. The April preliminary estimate was revised upward $1.4 billion or 0.4 percent. May sales of durable goods were down 0.2 percent from last month and were down 23 percent from a year ago. Sales of metals and minerals, except petroleum were down 8.1 percent for last month, while motor vehicle and motor vehicle parts and supplies were up 4.4 percent. Sales of nondurable goods were up 0.5 percent from last month, but were down 17.2 percent from last year. Sales of petroleum and petroleum products were up 4.6 percent from last month and sales of drugs and druggists’ sundries were up 1.4 percent.
Inventories
Total inventories were $402.2 …

Monthly Wholesale Trade: Sales and Inventories for May 2009 Read More »

Inflation by Commodity Group: Second Quarter 2009

These select product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Second quarter 2009 is compared with second quarter 2008, second quarter 2009 with first quarter 2009.

The product groups in this report:

Abrasives
Adhesives & Sealants
Cutting Tools & Accessories
Hand & Edge Tools
Fasteners
Power-Driven Hand Tools
Ball & Roller Bearings
Mechanical Power Transmission Equipment
Valves, Except Fluid Power
Pumps, Compressors & Equipment
Electrical Machinery/Equipment
Industrial Material Handling Equipment
Industrial Gases
Welding Machinery/Equipment
Fluid Power Equipment
Plumbing Fixtures & Fittings
Hardware
Sanitary Paper Products
Plastic Resins & …

Inflation by Commodity Group: Second Quarter 2009 Read More »

Distribution Financial Metrics and Trading Multiples: 2Q

This table highlights key financial metrics and trading multiples for 28 publicly traded distributors in the industrial and building products industries up to June 30, 2009. 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 …

Distribution Financial Metrics and Trading Multiples: 2Q Read More »

MDM July 25, 2009

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than seven years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to …

MDM July 25, 2009 Read More »

Economic Update: Is Recovery On the Way?

This is the first of a new monthly feature compiling the latest economic indicators to provide a more holistic view of the state of the economy.

The long climb to economic recovery may be beginning as a variety of economic indicators posted more positive results in May and June.While not all of the indicators posted positive results, many of those remaining negative declined at a slower rate. Though the outlook for recovery is still uncertain, many economists view these shifts as signs that the U.S. economy is heading into recovery phase with growth possible in 2010.

With the current recession in its nineteenth month, it is already longer and more widespread than the recessions in 1990-1991 and 2000-2001, according to Nouriel Roubini of the RGE Monitor, an economic analysis …

Economic Update: Is Recovery On the Way? Read More »

Commentary: The Fear Factor in Change

Here at MDM we are in the midst of implementing some positive changes in how we do business. We are especially excited about one in particular, which we will be revealing to you in the next couple of months.

Our operations are different from a distributor’s – MDM is a part of Gale Media, which is a specialized publishing and research business – but through our work, we are reminded of the challenges that come with change. Undoubtedly, these challenges transcend industry lines.

While we hope the ROI will be positive, there is only so much a business can control. And that’s the fear factor in change.

But it’s also exciting and provides a great opportunity for the company. We recognize the only way to continue growing is to make this investment of time and energy. We feel like …

Commentary: The Fear Factor in Change Read More »

Conditions Ripe for Better Pricing

Brent Grover of Evergreen Consulting recently spoke with MDM about the importance of the concepts outlined in his latest book, "Strategic Pricing for Distributors: Tools and Rules for Building Higher Margins." Grover writes that strategic pricing can result in an increase of 200 or more basis points (2 percentage points) of gross margin percentage. "It’s far more dramatic than slashing the staff or reducing sales commissions," he tells MDM. This article looks at why now is a good time to implement a new pricing strategy and analyzes the importance of two key aspects: the sales team and technology.

Grover’s book, written as part fable featuring the fictitious Mahoning Distributors, and part practical guide, was released by the National Association of Wholesaler-Distributors …

Conditions Ripe for Better Pricing Read More »

Builders FirstSource Sales Down 37.8% in Second Quarter

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 …

Builders FirstSource Sales Down 37.8% in Second Quarter Read More »

Alstom, Schneider Electric Consider Joint Bid for Areva

Alstom and Schneider Electric are considering making a joint bid for Areva Transmission and Distribution, recently put up for sale by its parent company.

Alstom and Schneider reported they would create a common structure" to bid for Areva, and if successful, would transfer the transmission activities to Alstom, and distribution activities to Schneider.

The high-voltage transmission part of Areva complements Alston’s own activities in power generation, while the medium-voltage distribution unit is an area in which Schneider is active, and would like to reinforce, according to a press release.

Alstom is in power generation and rail infrastructure. The company provides turnkey integrated power plant solutions, equipment and associated services for a wide variety of energy sources, …

Alstom, Schneider Electric Consider Joint Bid for Areva Read More »

Black & Decker Sales Fall 27% in Second Quarter

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. …

Black & Decker Sales Fall 27% in Second Quarter Read More »

Airgas Sales Declines 12% in 1Q

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 …

Airgas Sales Declines 12% in 1Q Read More »

MDM News Digest 3914

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.

MDM News Digest 3914 Read More »

3M Acquires ACE Product Line

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 …

3M Acquires ACE Product Line Read More »

Columbus McKinnon Posts $2.4M Loss in First Quarter

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 …

Columbus McKinnon Posts $2.4M Loss in First Quarter Read More »

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