News
Breaking news in Wholesale Distribution
June 2007 sales of merchant wholesalers, except manufacturers’sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $359.5, up 0.6 percent from the revised May level and were up 8.1 percent from the June 2006 level. The May preliminary estimate was revised upward $0.2 billion or 0.1 percent. June sales of durable goods were up 0.7 percent from last month and were up 4.9 percent from a year ago. Compared to last month, sales of computer and computer peripheral equipment and supplies were up 5.4 percent.
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Inventories. Total inventories of merchant wholesalers, except manufacturers’sales branches and offices, after adjustment for seasonal variations but not for price changes, were $398.5 billion …
Wholesaler-distributor revenues were $2.08 trillion in the first half of 2007, up 7.7% from the first half of 2006, unadjusted for seasonal variations. Wholesale revenues for durable goods were up 5.2%, and nondurable goods sales were up 9.6%. Here’s the breakdown in sales changes by sector for the first half of 2007:
Durable………………………………………….. Change  ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;
Automotive………………………………………….. 2.7%  ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;   ;
Furniture…………………………………………… 11.7%  …
PricewaterhouseCoopers second-quarter Manufacturing Barometer report showed that industrial manufacturing executives are optimistic about the international economy, but have lower expectations for the domestic economy’s performance over the next 12 months.
Industrial manufacturers have lowered their 12-month growth projections, citing oil/energy costs and competition from foreign markets among their top concerns, as well as the strength of the U.S. dollar and higher interest rates.
However, they remain optimistic that U.S. and global economies will grow and expect international sales to increase to 35 percent of total revenue over the next 12 months. This is an increase from 27 percent in the survey at the same time last year.
The majority plan to increase …
In March 2006, Linde AG announced that The BOC Group had accepted its takeover offer.  ; The question of what the impact of this merger would be on the industry was of particular urgency to the companies’distributors. In the nine months since the acquisition, how have these two companies come together, and what have they done to ease the transition?
Bob Van Kirk, an 18-year BOC veteran who now serves as Linde’s head of key customers and distributors, and Scott Latta, vice president of the U.S. southern region for Linde, spoke with Laura Ferrel, editor of Welding & Gases Today magazine, about how Linde and BOC approached the merger from the perspective of their distributors. They reflected on the challenges, the opportunities for growth, and how one can never …
PVF distributors McJunkin Corp. and Red Man Tool and Supply will merge to form a $3-plus billion company. Private equity has a controlling interest in McJunkin, meaning the deal, to be finalized in September, is probably just the first of many steps in the companies’plans for growth.
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The recently announced merger plan between leading pipe, valve and fittings (PVF) distributors McJunkin Corp. and Red Man Tool and Supply highlights the impact private equity is having in distribution. The deal would form a $3-plus billion company and largest U.S. PVF distributor.
Goldman Sachs owns a majority share of McJunkin, which was family-owned and -founded. One industry expert says the share is close to 60 percent, giving Goldman Sachs a controlling …
Platinum Equity has agreed to acquire Ryerson Inc., Chicago, IL, for $2 billion, which includes the assumption of debt. The price represents a 15 percent premium over Ryerson’s closing share price on Feb. 31, 2007, the day Ryerson announced it was considering strategic alternatives. Ryerson is a distributor and processor of metals in North America, with 2006 revenues of $5.9 billion. More
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Ryerson reported second quarter sales of $1.6 billion, a 7.2 percent increase from the year-ago period. Profit was up 72 percent year-over-year. More  ;
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Applied Industrial Technologies, Cleveland, OH, reported sales for its fiscal year ended June 30, 2007, increased 6% to $2 billion. Profit for the year rose 19% to $86 million, versus $72 million in the prior year.
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Sales for the fourth quarter were up 4.7% to $528 million from the prior-year period. Profit increased 22.2% to $24.6 million.
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Applied reported that the housing industry slump has had an impact on some of its related markets; the sluggish performance” by the automobile manufacturing sector also negatively impacted the distributor’s performance.
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Applied Industrial Technologies is an industrial distributor to MRO and OEM customers in virtually every …
A few events do not make a trend. But I’ve noticed a few instances lately where manufacturers have bought up distribution in select markets. Examples: In July, a Swedish manufacturer of seals, Trelleborg, acquired AFM in Portland, OR, a $13-million distributor. HVAC manufacturer Carrier Corp. announced in June it was buying a $150-million distributor serving northern California and Nevada, E.B. Ward and Valair, with 140 employees.
It stirs memories of the difficult balancing act and sometimes rocky road cutting tool manufacturer Kennametal found when it operated an industrial distribution division while also managing independent distribution networks. It finally spun off its distribution units.
The reason given by Carrier for its purchase of distribution: The …
The Home Depot, Atlanta, GA, announced it is in discussions with Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice with the aim of restructuring their agreement for the sale of HD Supply.
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These discussions could result, among other things, in a reduction in the $10.3 billion purchase price. The announcement  ; may be a result of tightening credit markets,  ; which would make it more difficult to raise the cash needed to buy the unit.
No other details on the discussions were released.
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In mid-June, Home Depot announced it would sell its wholesale division, a $12 billion unit, to the trio of private equity firms for roughly 10X-12X EBITDA. Read the original article here. …
Power Fasteners Inc., Brewster, NY, a global fasteners manufacturer, has been indicted by a Grand Jury in connection with the July 10, 2006, ceiling panel collapse that killed one person in the I-90 Connector Tunnel (Big Dig tunnel) in Boston, MA. Powers has been charged with one count of involuntary manslaughter.
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Milena Del Valle died when a suspended concrete ceiling panel collapsed on the vehicle she and her husband were traveling in. After a 13-month investigation, authorities determined that Powers’ epoxy was used to suspend the concrete ceiling in that section of the tunnel.
Federal authorities allege that the cause of the ceiling collapse was the use of Power-Fast Fast Set epoxy product in the anchor system. They say the type of epoxy used was found to be …
