News
Breaking news in Wholesale Distribution
Sales. November 2006 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 $331.3 billion, up 1.0% from the revised October level and were up 7.9% from the November 2005 level. November sales of durable goods increased 1.2% from last month and were up 7.7% from a year ago. Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were up 5.0% and sales of electrical and electronic goods increased 2.9 %. November sales of nondurable goods were up 0.7% (+/-0.7%) …
Dear Editor:
I would like to disagree with MDM’s editorial on Home Depot (MDM Jan. 10, 2007) – on several levels.
1) The job of company management, within certain limits, is to maximize shareholder value. HD stock was over $43 in 2000. According to the inflation calculator provided (on the Web) by the Bureau of Labor Statistics, that adjusts (for inflation) to about $50 in 2006. I would guess it will adjust another dollar higher in 2007 money, so make it $51.
Essentially, HD paid Bob Nardelli more than $450 million over six years to go backwards. The spending power of the money invested in HD stock by shareholders who bought the stock the day he was named Big Cheese DECLINED. You cite Nardelli’s accomplishments. If he’s not responsible for …
Company Snapshot
- One distribution center and five branches, based in Livonia, MI.
- Number of employees: 58
- Key products: Bearings and power transmission
We strive to be problem-solvers in the marketplace by providing end-user training. It's a service the customer values and one that our competition can't easily duplicate. It adds real value to what we offer and helps us build stronger relationships with our end users.
More than eight years ago we began receiving requests from customers for maintenance-related training. We viewed these requests as opportunities for us to grow our business.
We sat down with those customers to determine the specific areas where they needed …
Applied Industrial Technologies announced that Bill L. Purser, president and COO, will retire effective Dec. 31, 2007. Purser, 63, has been president since October 2000.
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Ben J. Mondics, 48, will be promoted to president following Purser’s departure. Mondics, effective Feb. 1, will be promoted to COO.
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Mondics is currently Applied’s Area Vice President – Midwest Area, where he oversees nine regions and 86 service centers in 11 states. The Midwest sales area is the largest of the company’s five geographic divisions. Mondics has been with Applied since 1994.
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More Breaking …
Kennametal Inc., Latrobe, PA, reported sales for the first six months of fiscal 2007 were $1.1 billion, level with the same period last year. Sales grew 6% on an organic basis, offset by the impact of acquisitions and divestiture of J & L Industrial Supply.
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Sales for the quarter were $569 million compared with $563 million in the same quarter last year. Sales grew 6% on an organic basis.
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Metalworking Solutions & Services Group sales were up 5%, led by year-over-year expansion in the distribution, aerospace and general engineering markets. The North American market continued to moderate (+1%), while conditions in the European market continued to improve (+11%), and Asia Pacific (+6%) and India (+7%) delivered solid growth.
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Praxair Distribution, Inc., Danbury, CT, a subsidiary of Praxair, Inc., has agreed to buy Mittler Supply Inc., distributor of industrial, medical, specialty gases and related welding equipment and supplies, operating in Indiana, Michigan and Illinois. Mittler had sales of $73 million in 2006 and has 210 employees.
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Founded in 1946, Mittler operates a cylinder-gas fill plant, specialty-gas laboratory and a centralized warehouse for distribution of welding equipment and supplies at its headquarters located in South Bend, IN. The firm also operates several satellite cylinder-gas fill plants and 18 retail sales and distribution locations in the three states.
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“The addition of Mittler Supply to our existing network in the Great Lakes …
Industrial gases producer and distributor Praxair, Inc., Danbury, CT, reported sales of $8.3 billion for 2006, an increase of 10% over last year. In North America, sales reached $4.6 billion for the year, up 9%.
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Sales in the fourth quarter were $2.123 billion, up 9% from the same period a year ago. In North America, fourth-quarter sales hit $1.182 billion, up 6%.
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Praxair achieved strong growth from new business and the start-up of new supply systems in every geography and end market.
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Sales growth occurred in most major end markets and the company completed seven major projects in 2006. Additionally, the number of new projects underway and set to come on stream in the next several years increased significantly …
Illinois Tool Works Inc. has sold its mechanical roofing fastener business for $26 million to OMG Inc., a subsidiary of Handy & Harman.
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The business develops and manufactures fastening systems for the commercial roofing industry.
OMG is a manufacturer of mechanical fasteners, accessories and components and building products for the commercial and residential construction industry.
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More Breaking …
BlueLinx Holdings Inc., Atlanta, GA, distributor of building products, reported revenue for the fourth quarter 2006 declined about 29% to $945 million from the same period a year ago. The company’s business that is tied to new home construction was negatively impacted by the slowdown and depressed wood-based structural product prices. BlueLinx reported a net loss for the quarter.
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The company’s fourth-quarter results historically are affected negatively by a seasonal slowdown in construction. It also had a stronger-than-expected 2005 fourth quarter in the aftermath of Hurricanes Katrina and Rita.
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The company’s overall unit volume fell about 17% during the fourth quarter, with structural unit volume down about 18%, and specialty unit …
Diversified industrial manufacturer Eaton Corp. reported sales for 2006 were up 12% from 2005, and profit was up 18%. Sales were $12.4 billion.
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Fourth quarter sales were up 10% to $3.1 billion, with profit up 15%.
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Segment Results
Fourth quarter sales for Electrical were $1.1 billion, up 9% over 2005. End markets grew about 2.5% for electrical, reflecting a slowdown from the growth rate in early 2006. In 2007, Eaton expects 4% growth, with nonresidential markets offsetting a decline in residential markets.
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In Fluid Power, fourth quarter sales were $985 million, 17% above the same period in 2005. Organic growth was 7%. Fluid Power markets grew 6%, with global hydraulics shipments up 7%, …
