Ferguson opens Michigan showroom
11/07/08 – Ferguson announced the opening of a 4,300-square-foot facility at 3186 Cass Road, Traverse City, Mich.

“This facility is more than double the space than our old location, with more room for the latest products,” said branch manager Kip Costigan.

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Schaedler Yesco acquires two distributors
11/07/08 – Schaedler Yesco Distribution announced the acquisition of H&S Supply and B&R Electric Co. With locations in New Oxford, Pa., and Gettysburg, Pa., H&S Supply is a wholesale distributor of lighting and electrical fixtures, heating, ventilation and air conditioning products. B&R Electric is a St. Marys, Pa.-based distributor of electrical, lighting and industrial automation products.

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WinWholesale opens Seattle branch
11/07/08 – WinWholesale Inc. opened Seattle Windustrial in Kent, Wash., to provide mechanical contractors from Olympia to Bellingham with a complete line of pipes, valves, fittings and accessories.

Mike Baker is president. He joined WinWholesale in 1996 and previously was president of Portland Windustrial in Oregon and Elko Windustrial in Nevada.

“With two other successful Windustrial company starts under his belt, Mike knows the business cold,” said Monte Salsman, WinWholesale chief operating officer. “He’s the right person to expand WinWholesale’s reach into the busy I-5 corridor in the Seattle area with a team that has more than 50 years of experience. They offer their customers quality products, in-depth knowledge of those products and exceptional customer service.”

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NAW releases Outlook 2009
11/07/08 – The NAW Institute for Distribution Excellence released Outlook 2009, an executive companion to the study Facing the Forces of Change: Lead the Way in the Supply Chain. The book includes insights from multiple authors on major and emerging trends, including the pros and cons of private label products; the growth and development of demand-driven channel relationships; management challenges behind the new profit model of fee-based services and more. Authors include David Gordon of the Channel Marketing Group, Brent R. Grover of Evergreen Consulting, Dave Kahle of the DaCo Corporation, and J. Michael Marks of Indian River Consulting Group. To order, go to www.naw.org/outlook2009.

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3M and ITW settle patent suit
11/06/08 – 3M and Illinois Tool Works Inc. have reached a settlement of a 2006 lawsuit in which 3M claimed ITW infringed on a 3M patent covering its paint preparation system products. Terms of the settlement were not disclosed. According to 3M, “ITW has acknowledged the validity and enforceability of 3M’s patent rights and has taken a license under 3M patents. In addition, the parties have entered into a supply agreement under which 3M will supply a portion of ITW’s DeKups system in the future.”

In mid-2006, St. Paul, Minn.-based 3M disclosed that it had filed a patent-infringement suit against ITW, a diversified manufacturer based in Glenview, Ill. The suit alleged that the DeKups paint system product used by ITW/DeVilbiss violated a 3M patent.

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Lawson Products reports sales decline
11/06/08 – Lawson Products said its third-quarter net sales were $124.6 million, compared to $127.9 million for the prior year quarter. Net income was $3.1 million, up 28.3 percent. The company said the sales decline was a result of lower sales in the MRO business.

For the nine months ended Sept. 30, net sales were $375.9 million as compared to $386.8 million for the nine-month period a year ago.

"Our third quarter 2008 sales performance did not meet our expectations. In addition, we continue to experience product and commodity cost increases that are affecting our gross profit margins. We are taking action to offset these cost increases by implementing additional price increases within our MRO segment during the fourth quarter,” said Thomas Neri, president and CEO.

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United Stationers posts gains
11/06/08 – United Stationers reported that net sales for the quarter were $1.3 billion, up 10.5 percent. The December 2007 acquisition of ORS Nasco contributed approximately 7 percent to the growth rate. Third quarter operating margin reached $61.8 million, or 4.6 percent of sales, versus $52.4 million, or 4.4 percent of sales, in the prior-year quarter.

Gross margin as a percent of sales for the third quarter was 14.8 percent, flat with the prior-year quarter.

"We are mindful of the weakening economic backdrop and the potential effects on the markets we serve," said Richard W. Gochnauer, president and CEO. "October sales to date are off to a slower start, trending up about 5 percent versus last year. Over the next few months, we expect sales and margin to reflect the benefit of announced manufacturer price increases.”

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Manufacturing takes another hit
11/05/08 – Two new reports indicate more bad news for U.S. manufacturers. According to the U.S. Census Bureau, manufactured goods orders decreased $11.2 billion or 2.5 percent in September to $432 billion. This followed a 4.3 percent August decrease. Excluding transportation, new orders decreased 3.7 percent. Shipments, also down two consecutive months, decreased $12.5 billion or 2.8 percent to $432.9 billion. This followed a 3.7 percent August decrease.

In a separate report, the Institute for Supply Management’s PMI fell to 38.9 in October, 4.6 percentage points lower than the 43.5 percent reported in September. This is the lowest reading since September 1982 when the PMI registered 38.8 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

"The PMI indicates a significantly faster rate of decline in manufacturing when comparing October to September. It appears that manufacturing is experiencing significant demand destruction as a result of recent events, with members indicating challenges associated with the financial crisis, interruptions from the Gulf hurricane, and the lagging impact from higher oil prices," said Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee.

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Fairmont Supply buys North Penn Pipe & Supply
11/05/08 – Fairmont Supply Company has acquired North Penn Pipe & Supply of Warren, Pa. Terms were undisclosed.

North Penn Pipe & Supply has been a supplier to the oil and gas industry for more than 100 years. As a wholly owned subsidiary of Fairmont Supply Company, North Penn Pipe & Supply will continue to operate under its current name. Robert D. Metzgar will remain in his current role as president.

“We believe that oil and gas is a significant component in meeting our country’s current and future energy needs. Our long-term business plan has been to balance our growth in various key market segments. This acquisition supports that strategy,” said Fairmont Supply president Rich Layton.

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Parker Hannifin acquires Nexgen Hose
11/04/08 – Parker Hannifin has acquired Nexgen Hose Inc., headquartered in Fergus, Ontario, Canada. Nexgen manufactures industrial PVC hose and tubing for niche and industry standard applications. Terms of the transaction were not disclosed.

Nexgen had revenues of $7.2 million and employed approximately 40 employees in 2007.

"Nexgen strengthens Parker's position in the North American industrial hose market, broadening our total product offering with the addition of PVC hose and tubing," said Bob Bond, president of Parker's Fluid Connectors Group. "Nexgen's strong brand recognition and innovative products complement our ability to provide customers with the industry's broadest range of fluid handling hose and tubing. We are very excited to have Nexgen join Parker."

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Interline Brands posts sales decline
11/03/08 – Interline Brands said its sales for the quarter ended Sept. 26 were $317.5 million, a 3.8 percent decrease compared to sales of $330.2 million in the comparable 2007 period. Interline's facilities maintenance end-market, which comprised 70 percent of sales, declined 2.4 percent during the third quarter on an average daily sales basis. The pro contractor end-market, which comprised 19 percent of sales, declined 10.1 percent in the quarter and the specialty distributor end-market, which comprised 11 percent of sales, declined 3.6 percent for the quarter. Gross profit decreased $4.5 million to $120.9 million for the third quarter of 2008.

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Non-residential construction spending climbs in September
11/03/08 – Construction spending during September 2008 was estimated at a seasonally adjusted annual rate of $1,060.1 billion, 0.3 percent below the revised August estimate of $1,063.5 billion. The September figure is 6.6 percent below the September 2007 estimate of $1,134.9 billion. During the first nine months of this year, construction spending amounted to $807.3 billion, 6.2 percent below the $860.5 billion for the same period in 2007.

Spending on private construction was at a seasonally adjusted annual rate of $751.7 billion, 0.1 percent above the revised August estimate of $751.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $415.2 billion in September, 1.2 percent above the revised August estimate of $410.3 billion. Residential construction was at a seasonally adjusted annual rate of $336.5 billion in September, 1.3 percent below the revised August estimate of $340.8 billion.

In September, the estimated seasonally adjusted annual rate of public construction spending was $308.4 billion, 1.3 percent below the revised August estimate of $312.4 billion. Educational construction was at a seasonally adjusted annual rate of $86.5 billion, 0.3 percent below the revised August estimate of $86.7 billion. Highway construction was at a seasonally adjusted annual rate of $79.9 billion, 1.5 percent below the revised August estimate of $81.2 billion.

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Barnes Group sees Q3 net income climb
11/03/08 – Barnes Group Inc. reported third quarter 2008 net income of $28.9 million, or $0.51 per diluted share, an 8.5 percent increase in earnings per share over the prior year third quarter. Third quarter margin improvements were principally from continued progress in Barnes Distribution's North American operations and strong Barnes Aerospace profits driven by continued operational improvements and cost reduction efforts.

"While current macroeconomic headwinds presented a challenge to our third quarter top line growth, our global diversification and differentiated business model proved resilient, resulting in year-over-year EPS growth for the third quarter," said Gregory F. Milzcik, president and CEO, Barnes Group Inc. "We are confident that the recently announced reorganization for our strategic business units will position the company to proactively respond to anticipated economic challenges while realizing additional longer term synergies. We will continue to assess additional needs for production realignment and product rationalization to strengthen our long-term prospects."

Barnes Distribution's vendor managed inventory and technical sales service and support delivery models are generating improved financial performance. The organization's focus on generating profitable sales and stabilizing the sales ranks are providing added favorable momentum throughout the business.

Barnes Distribution sales of $123.5 million in the third quarter of 2008 reflect a decrease of approximately 6 percent from the third quarter of 2007. Barnes Distribution's organic sales decreased $9.6 million, or approximately 7 percent. The lower organic sales were due to declines in certain markets in North America, primarily transportation and manufacturing-related segments, and lower organic sales in Europe, predominantly due to sales force disruption in the United Kingdom.

Sales, as reported in U.S. dollars, continue to be favorably impacted by the strength of the local currencies, increasing sales by approximately $1.1 million in the third quarter of 2008, primarily in Europe. The favorable impact of currency translation will likely decline if the recent strengthening of the U.S. dollar against local currencies continues.

Barnes Distribution's operating profit for the third quarter of 2008 more than doubled to $5.9 million and resulted in an operating margin improvement of 2.8 percentage points to 4.8 percent. This improvement is primarily driven by solid execution on cost management and warehouse operations in North America, which achieved double-digit operating margins during the quarter.

Despite challenging macroeconomic conditions, Barnes Distribution North America continued to make operational and financial headway. North American operational initiatives continue to lower costs, drive sales force productivity, and improve pricing. Throughout the year, Barnes Distribution North America has generated favorable year-over-year progress and has continued to maintain its focus on the customer by providing a high level of service delivery. Additionally, market segmentation strategies are identifying and targeting key customers that value our services in markets such as food processing and truck fleet.

The positive impact on operating profit in North America was offset by the underperformance in Europe which reported lower sales volumes and higher costs. The European management team is coordinating efforts towards stabilizing and improving the operational performance and cost structure of the business and is considering structural changes to improve long-term profitability.

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Kaman generates third quarter earnings increase
11/03/08 – For the third quarter of 2008, Kaman Corp. reported net earnings from continuing operations of $13.5 million, or $0.53 per share diluted, compared to net earnings from continuing operations of $9.4 million, or $0.38 per share diluted, in the third quarter of 2007. Net sales from continuing operations for the third quarter of 2008 were $335.1 million, an increase of 21.9 percent over the $274.9 million reported in the third quarter of 2007.

For the first three quarters of 2008, net earnings from continuing operations increased slightly to $28.5 million, or $1.12 per share diluted, compared to net earnings from continuing operations of $27.5 million, or $1.11 per share diluted in the year ago period. Net sales from continuing operations for the 2008 nine-month period were $937.2 million, an increase of 15.2 percent over the $813.8 million reported in the first three quarters of last year.

Kaman's industrial distribution segment -- Kaman Industrial Technologies -- reported operating income for the third quarter of 2008 of $10.7 million, an increase of 18.3 percent over operating income of $9 million in the third quarter of 2007. Segment sales increased 14.7 percent in the 2008 third quarter to $204.3 million from $178.1 million a year ago.

Organic sales growth in the quarter was 7.1 percent, compared with 6.8 percent in the prior year period, with the remaining growth coming from the acquisition of Industrial Supply Corporation (ISC) during the second quarter.

The industrial distribution segment's results for the 2008 third quarter reflect strong demand in served markets, the continued success of the company's efforts to expand its national accounts business, and the addition of ISC, according to a company statement. Operating profits in the period improved as a result of higher sales volumes and a focus on cost management, which continues to be offset somewhat by cost growth associated with new branch openings, as the segment continues to expand its operations in order to support its growing business.

Overall, the operating profit margin for the quarter was 5.2 percent, a slight improvement over the prior year profit margin of 5.1 percent despite the integration of ISC, which had the effect of diluting the segment's overall operating profit margin slightly for the quarter.

For the 2008 nine-month period, net sales in the industrial distribution segment totaled $589.8 million, compared with $526.1 million in the year ago period. Organic growth for the first three quarters of 2008 was 6.9 percent, compared with 3.6 percent in the same period last year. Segment operating income in the first three quarters of 2008 totaled $29.5 million, compared to $26 million in the first nine months of 2007.

"In the third quarter, industrial distribution continued the solid performance it had demonstrated in the first half of the year," said Neal J. Keating, Kaman chairman, president and CEO. "Organic sales growth has been healthy despite the uncertainty of the economic environment and a tougher comparison from a strong third quarter last year. I am proud of the progress being demonstrated by the KIT team, and believe our expansion into Puerto Rico through the acquisition of INRUMEC will enable us to serve our growing list of national account customers who have facilities on the island."

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Stock Building Supply to cut 3,000 jobs
11/03/08 – Wolseley plc, the world’s largest specialist trade distributor of plumbing and heating products to professional contractors and a leading supplier of building materials, will significantly restructure its U.S. building materials business, Stock Building Supply.

Stock is a top distributor of building materials in the U.S. with operations in 33 states. It generates more than 70 percent of its revenues from new residential construction and has consistently outperformed the markets in which it operates. However, U.S. housing starts have fallen 64 percent from an annual rate of 2.3 million in January 2006 to an annualised 817,000 in September 2008.

Despite cutting headcount by around 40 percent and closing 70 branches since the market peak in January 2006, Stock reported a trading loss of $246 million in the year ended July 31, 2008, on revenues of $3.5 billion.

The restructuring of the business will involve:
• closure of 86 branches, taking the branch numbers to 209
• exiting of 16 markets in six states, leaving a presence in 27 states
• further headcount reductions of around 3,000 to leave around 8,700 employees, bringing the cumulative reductions since the peak in 2006 to 55 percent, or 10,600.

The 86 branches to be closed represent around 25 percent of Stock’s revenue and 28 percent of its headcount.

"With the on-going decline in U.S. new residential construction, significant over-capacity in the industry and the consequential negative impact that Stock is having on the group’s results, it is imperative that we take further action to restructure this business," said Chip Hornsby, Group CEO of Stock Building Supply's parent company Wolseley. "The measures we are taking will move us back towards profitability, while still keeping a presence in key districts for when the market recovers."

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Parker Hannifin purchases EmiTherm
11/03/08 – Parker Hannifin Corporation acquired EmiTherm Sdn Bhd, a provider of electromagnetic interference (EMI) shielding and thermal management products. Revenues of the acquired business were approximately $4.2 million in 2007. Earnings are expected to be accretive to Parker in the first full year and will be reported within the Industrial International segment.

Founded in 1996 by Roger Chua, EmiTherm is headquartered in Shah Alam (Kuala Lumpur), Malaysia. EmiTherm manufactures EMI shielding materials such as dispensed form-in-place, molded and extruded conductive gaskets, and is a converter of thermal materials, serving electronics manufacturers throughout Malaysia and the ASEAN region.

EmiTherm will be integrated into the Chomerics Asia-Pacific Division, a unit of Parker's global Seal Group.

"EmiTherm enjoys a strategic footprint in Malaysia, enabling us to effectively serve our customers throughout the region," said Heinz Droxner, president of Parker's Seal Group. "The acquisition of EmiTherm provides us with strategic advantage in this vital electronics manufacturing region, offering global customers access to products and efficient supply chain management."

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News from the week of October 27, 2008

EnPro posts sales gain
10/31/08 – EnPro Industries reported net income of $13.1 million, or 62 cents a share, for the third quarter of 2008 compared with net income of $12.3 million, or 54 cents a share, in the third quarter of 2007. Sales grew by 10 percent to $278.6 million compared with $252.7 million in the third quarter of 2007. Acquisitions contributed about 5 percentage points of the improvement.

The Sealing Products segment reported a 13 percent increase in sales to $127.1 million. Acquisitions contributed about 5 percentage points of the increase while favorable foreign exchange contributed about 2 percentage points. The remaining 6 percentage points came primarily from improved activity in hydrocarbon production and processing, power generation and metals and mining markets served by Garlock Sealing Technologies, both in the United States and other parts of the world, the company said.

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Pulick named president of Grainger Industrial Supply
10/29/08 – W. W. Grainger announced today that Michael A. Pulick, senior vice president for Customer Service, was promoted to senior vice president and president of Grainger Industrial Supply, effective Nov. 1. Pulick replaces Y.C. Chen, who will stay on in a special advisory role with the company.

"Y.C. has served Grainger in many important positions and has been instrumental in establishing the company's global sourcing business, improving the supply chain network, and helping to develop the strategic direction of the company's operations in Canada and Mexico before leading Grainger Industrial Supply. He leaves behind a business with a strong foundation for future growth," said Grainger president and CEO James T. Ryan. "We are pleased to be able to continue to have his counsel."

Pulick joined Grainger in 1999 from General Electric. He has served as Director of Supplier Management for Grainger's Custom Solutions business and Product Category Director for Tools, Metalworking and Custom Products. He was named Vice President, Product Management, in 2004 and promoted to his current position in 2006.

Grainger will also establish a global supply chain function under senior vice president D.G. Macpherson, effective immediately. This new function will provide global planning, coordination and specialized expertise to the supply chain organizations in all of Grainger's business units.

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United Rentals posts decline
10/29/08 – United Rentals said its rental revenue was $677 million and total revenue was $873 million for the third quarter 2008, compared with $718 million and $990 million, respectively, for the same period last year. Income from continuing operations was $74 million for third quarter 2008, compared with $111 million for third quarter 2007. The decline in income primarily reflects the impact of continued softness in the company's end markets, as well as increased interest expense of $26 million pre-tax following the company's preferred and common share repurchases earlier in the year.

"We are prepared for our operating environment to become steadily more challenging as economic pressures and the credit crisis combine to suppress construction spending,” said CEO Michael Kneeland. He added that the company plans to close approximately 30 more branches.

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Praxair income and sales up
10/29/08 – Praxair Inc. reported record net income of $355 million and diluted earnings per share of $1.11 in the third quarter, compared to $305 million and 94 cents, respectively, in the prior year. This represents net income and earnings per share growth of 16 percent and 18 percent, respectively, versus the third quarter of 2007.

Sales in the third quarter were $2.85 billion, up 20 percent from $2.37 billion in the prior-year quarter. Praxair achieved strong sales growth in every geographic region, led by South America and Asia.

In North America, third-quarter sales were $1.55 billion, 19 percent above the prior year. Excluding the effect of higher natural gas prices passed through to customers in hydrogen prices, sales growth was 14 percent. Acquisitions of U.S. packaged gas distributors contributed 4 percent to sales growth. Underlying growth of 9 percent was driven by diverse markets including energy, metals, manufacturing and chemicals. Operating profit grew 12 percent to $274 million.

“We had another very strong quarter despite some effect from the U.S. Gulf Coast hurricanes, and slowing macroeconomic growth in the U.S. and Europe. Due to the financial crisis, we expect to see a contraction in manufacturing output in the U.S. and Europe, combined with slowing growth in Asia and South America for the next several quarters,” said chairman and CEO Steve Angel.

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Applied wins GSA award
10/29/08 – Applied Industrial Technologies earned the Excellence in Partnership (EIP) Award for the "Most Valuable Schedule Contractor" as selected by peers in the Federal Acquisition Service. This award is sponsored by the Coalition for Government Procurement and supported by the General Services Administration (GSA).

The Excellence in Partnership Awards recognize organizations that have made significant strides in the promotion and utilization of the GSA's Multiple Award Schedule Program. Specifically, the Most Valuable Schedule Contractor Award is granted to the organization that has worked tirelessly to promote the schedule program, has an outstanding reputation of working with the Federal Acquisition Service, and has proven success in serving customer needs. This is the third consecutive year Applied has received award recognition from the GSA.

"Applied is honored to receive this Excellence in Partnership Award because it represents our comprehensive commitment to work with the GSA, the Federal Acquisition Service, and the Coalition for Government Procurement to provide quality products and excellent service," said Michael Coticchia, chief administration officer and vice president of government business.

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Manufactured goods orders increase
10/29/08 – New orders for manufactured durable goods in September increased $1.6 billion or 0.8 percent to $207.8 billion, the U.S. Census Bureau announced today. This was the fourth increase in the last five months and followed a 5.5 percent August decrease. Excluding transportation, new orders decreased 1.1 percent. Excluding defense, new orders decreased 0.6 percent.

Shipments of manufactured durable goods in September, up three of the last four months, increased $0.4 billion or 0.2 percent to $208.8 billion. This followed a 4.2 percent August decrease.

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Motion Industries gives out supplier awards
10/29/08 – Motion Industries recently recognized 63 of its suppliers with an Operational Excellence Partnership Award. The recipients achieved significant process improvements with Motion Industries by meeting Operational Excellence performance objectives, including system connectivity, efficiency gains and customer service enhancements. Twenty-four suppliers were recognized with 5-Year Partnership awards for continuous efforts to advance the Operational Excellence Supplier Partnership Program since the program’s inception.

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SPX has strong quarter
10/29/08 – SPX Corporation said its third-quarter revenues increased 28.8 percent to $1.51 billion from $1.17 billion in the year-ago quarter.

The Flow Technology segment posted revenues of $493.0 million compared to $256.3 million in the third quarter of 2007, a 92.4 percent increase. The increase was due primarily to the fourth quarter 2007 acquisition of APV, which contributed $211.5 million of revenues during the quarter. Additionally, organic revenue growth was 8.3 percent in the quarter, driven primarily by strong sales in the power, oil and gas, and dehydration markets. The segment’s income was $55.8 million, or 11.3 percent.

The Industrial Products and Services segment had revenues of $319.8 million compared to $248.6 million in the third quarter of 2007, a 28.6 percent increase. Segment income was $70.3 million, or 22.0 percent of revenues.

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Grainger opens San Francisco area branch
10/28/08 – Grainger announced the opening of a new branch in Fremont, Calif. The company now operates 13 locations in the Bay Area.

"Grainger's local expansion was in direct response to customer requests for more facilities maintenance products closer to them," said Rick Haley, District Branch Services Manager for Grainger. "Today more than ever, our business customers need to be as efficient as possible, and we've responded by offering quick, easy, same-day access to more of the products they need."

Located just east of Interstate 880 and Auto Mall Parkway, the new branch includes a 2,500 square-foot showroom that offers products specific to the needs of its local manufacturing, commercial and contractor customers. Products include ventilation and air conditioning equipment, and electrical, plumbing, safety and security supplies.

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Sales up for Applied Industrial Technologies
10/27/08 – Applied Industrial Technologies reported net sales for the first quarter increased 4.9 percent to $543.9 million from $518.5 million in the comparable period a year ago. Same-store sales in the United States were slightly down primarily due to weak housing and automotive markets. These decreases were offset by sales increases from recent acquisitions and by growth in its Canadian business, the company said.

Net income for the quarter was $22.5 million, 52 cents per share, compared to $24.4 million, or 56 cents per share, last year. “Gross margins were slightly lower as a result of the ongoing challenges of passing through supplier price increases as well as a mix shift to larger contract business,” according to a company statement.

"Our sales slowed in the quarter as we saw mixed demand within the industries we serve," said David L. Pugh, Applied's chairman and CEO. "Housing related and transportation markets have slowed considerably, while energy related markets have continued to show strength. Primary metals and food production markets are still strong for us as well.”

In August, Applied completed the acquisition of Fluid Power Resource and seven of its fluid power distribution businesses in the United States, which contributed one month to quarterly sales, said Pugh. "We continue to generate significant cash flow and maintain a strong balance sheet with which to continue to pursue strategic growth opportunities,” he added.

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MSA reports 15 percent sales increase
10/27/08 – MSA announced that net sales for the third quarter of 2008 were $285.9 million compared with $247.7 million for the third quarter of 2007, an increase of $38.2 million, or 15 percent. Net income for the third quarter of 2008 was $17.9 million, or 50 cents per basic share, an increase of $1.2 million, or 7 percent, compared with $16.7 million, or 47 cents per basic share, for the same quarter last year.

Sales in the company's North American segment increased $11.1 million, or 9 percent. Self-contained breathing apparatus (SCBA) sales were up $15.3 million in the current quarter.

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Barnes Group realigns
10/24/08 – Barnes Group Inc. announced a realignment of its organizational structure into two new global business segments, Precision Components and Logistics and Manufacturing Services.

Precision Components supplies manufactured precision components for industrial, aerospace, transportation, energy, electronics, medical, and consumer products.

Logistics and Manufacturing Services provides logistical support through vendor managed inventory and technical sales for maintenance, repair, operating and production supplies. This segment also includes the manufacturing and delivery of aerospace aftermarket spare parts and the repair of aerospace engine components, as well as the design, manufacture and distribution of engineered supplies for the global industrial base.

"By aligning the business segments for growth and efficiency, we are able to leverage administrative synergies and eliminate organizational redundancies," said Gregory Milzcik, president and CEO. "Our new global business segments are structured for greater market focus, efficiency, and execution to respond to our growing international customer base. Our ability to reduce administrative cost burdens while strengthening our focus on the needs of our customers will help us achieve our long-term goals of balanced and sustainable profitable growth."

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Acquisitions drive Ingersoll-Rand growth
10/24/08 – Ingersoll-Rand Company announced that total revenues increased by 93 percent to $4.3 billion compared to $2.2 billion for the 2007 third quarter. Third-quarter 2008 includes $2 billion from the acquisition of Trane, part of the Air Conditioning Systems and Services (ACSS) segment.

The company reported net earnings of $227.7 million, or 70 cents per share.

"Despite increasingly difficult market conditions in the third quarter, we delivered year-over-year revenue growth while reducing debt by $443 million and meeting our synergy expectations for the acquisition of Trane," said Herbert L. Henkel, chairman, president and CEO. “We are also accelerating productivity and cost reduction actions and have undertaken a major company-wide restructuring to adjust our cost structure to offset slowing end market activity."

Revenues in the Industrial Technologies segment – which provides equipment and services for compressed air systems, tools, fluid power production and energy generation systems – increased by approximately 2 percent to $718 million.

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Sales rise for Columbus McKinnon
10/24/08 – Columbus McKinnon Corporation said its sales for the second quarter of fiscal 2009 were $154.7 million, up $9.7 million, or 6.7 percent, over the same period in the prior year. Net income was up 12.5 percent to $10.6 million.

The company said Hurricane Ike caused many businesses and oil and gas operations to shut down for a number of weeks in September, reducing operating income on delayed sales by an estimated $600,000. In addition, rising costs of materials, freight and utilities further impacted earnings.

“We are taking aggressive measures to fine tune our cost structure in anticipation of slowing in the industrial and commercial markets,” said Timothy T. Tevens, president and CEO. “Our lower fixed cost structure and leaner operations provide us flexibility to make changes quickly and also lessen the recessionary effects on our earnings power when compared with the last recessionary period earlier this decade."

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Timken reports 18 percent sales gain
10/24/08 – The Timken Company reported record third-quarter sales of $1.48 billion, an increase of 18 percent over the same period a year ago. Income was $130.4 million, or $1.35 per diluted share, compared to $41.2 million, or 43 cents per diluted share, in the third quarter a year ago.

The Bearings and Power Transmission Group had third-quarter sales of $1 billion, up 8 percent from $918 million for the same period last year. Earnings for the group were $98.8 million, up 123 percent from $44.2 million in the third quarter of 2007.

“Our strategy of shifting our portfolio toward more attractive global industrial markets is clearly delivering results,” said James W. Griffith, Timken’s president and CEO. “While the economy today is unsettled, we still see strong demand for our products from aerospace, energy and heavy industry market sectors, as well as growth in Asia. We continue to take actions to deal with declining automotive demand. Our company is well-positioned to navigate the uncertain markets we face.”

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Acme United posts 12 percent sales increase
10/24/08 – Acme United Corporation announced that net sales for the quarter ended Sept. 30 were $19.2 million, compared to $17.1 million in the same period in 2007, an increase of 12 percent. Net sales for the nine months were $56.1 million, compared to $48.3 million in the same period in 2007, an increase of 16 percent.

Net income was $1.35 million, or 37 cents per diluted share, compared to $1.30 million, or 35 cents per diluted share, for the comparable period last year, an increase of 4 percent. Net sales in the U.S. segment increased 14 percent.

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Airgas reports sales up 15 percent
10/23/08 – Airgas reported that its second quarter sales increased 15 percent from the prior year to $1.2 billion. Acquisitions contributed 7 percent to the increase, and total same-store sales grew 8 percent in the quarter, with gas and rent up 12 percent and hardgoods up 4 percent. Net earnings grew 44 percent to $72.8 million, or 86 cents per diluted share, compared to $50.6 million, or 60 cents per share, in the prior year.

"We are performing very well in a moderating economic environment," said chairman and CEO Peter McCausland. "Our expanded offering that targets infrastructure construction has been successful in gaining new business, particularly in the energy and power segments. About 40 percent of our sales come from our strategic products, which posted 11 percent organic growth in the quarter and are focused on the medical, life sciences, research, environmental, and food and beverage markets.

He added that Airgas made six acquisitions in the quarter, representing $142 million of acquired annual revenue to date.

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Stock Building Supply to close 86 branches
10/23/08 – Wolseley plc, the UK-based distributor of plumbing and heating products, today announced plans for a significant restructuring of Stock Building Supply. It will close 86 branches, exit 16 markets in six states, and eliminate about 3,000 jobs. After the closings, Stock will have about 8,700 employees operating 209 branches in 27 states.

The 86 branches to be closed represent around 25 percent of Stock’s revenue and 28 percent of its headcount.

Wolseley anticipates that the moves will reduce losses by about $100 million for the fiscal year ending July 31, 2009.

“With the ongoing decline in U.S. new residential construction, significant over-capacity in the industry and the consequential negative impact that Stock is having on the Group’s results, it is imperative that we take further action to restructure this business. The measures we are taking will move us back towards profitability, while still keeping a presence in key districts for when the market recovers,” said Chip Hornsby, Group CEO.

The company did not specify which locations will be closed. However, Hornsby said Stock will remain in North Carolina, Florida, Texas, California, Utah and South Carolina, but will exit Louisiana, where it does not have a significant presence.

With operations in 33 states, Stock generates more than 70 percent of its revenues from new residential construction. U.S. housing starts have fallen 64 percent from an annual rate of 2.3 million in January 2006 to 817,000 in September 2008.

Wolseley previously reduced headcount by around 40 percent and closed 70 Stock branches since the market peak in January 2006. Stock reported a trading loss of $246 million in fiscal 2008, on revenues of $3.47 billion.

Over the last six months, the company explored a possible sale of Stock Building Supply, but could not find a buyer. It also considered forming a joint venture with another party or closing the business before settling on the restructuring announced today.

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Baldor Electric reports 5 percent sales increase
10/23/08 – Baldor Electric Company reported sales of $506.5 million for the third quarter, a 5 percent increase compared to $480.5 million in the same period last year. Diluted earnings per share were 55 cents, compared with 53 cents in 2007. Net income increased 5 percent to $25.8 million. On a year-to-date basis, sales increased 8 percent to $1.48 billion.

“The third quarter was a challenge due to increasing raw material costs, the timing of our price increases, and a change in our product mix. In the quarter, motors grew at 8 percent while the more profitable power transmission products grew at only 2 percent. This change in mix impacted margins and earnings," said John McFarland, chairman and CEO. "We continue to expect revenue to increase at a mid-single digit rate in the fourth quarter. While our business remains positive today, we are proactively taking steps to prepare our business in the event of a more challenging environment in 2009."

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Cooper Industries reports 15 percent gain
10/23/08 – Cooper Industries reported third quarter 2008 revenues increased 15 percent to $1.73 billion, compared with $1.50 billion for the same period last year. Income from continuing operations rose 12 percent to $170.9 million, compared with $153.1 million for the prior year’s third quarter.

“In the third quarter, we delivered strong core revenue growth of 7 percent supplemented by acquisitions, which contributed over 7 percent, as well as approximately 1 percent from currency translation. We are very pleased with our performance in light of the unprecedented market volatility that occurred late in the third quarter,” said Cooper Industries’ chairman and CEO Kirk S. Hachigian.

The Tools segment revenues for the quarter were $201.7 million, up 1 percent from 2007 third quarter revenues of $199.4 million. Excluding the effects of currency translation, revenues for the quarter were approximately 3 percent lower than 2007 third quarter on declining North American aerospace, retail and automotive results and weaker European demand, partially offset by increased revenue in Asia and the rest of the world.

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Wesco’s sales up 5.3 percent
10/23/08 – Wesco International reported net sales for the third quarter of 2008 were $1.62 billion, compared to $1.54 billion in 2007, an increase of 5.3 percent. Net income for this quarter was $66 million versus $72 million in the comparable 2007 quarter.

"We are pleased with our third quarter performance, particularly in light of the current economic conditions. Consolidated net sales grew over 5 percent, driven primarily by strength in our commercial construction and utility end markets. Investments in the expansion of our sales force continues with a net add of sales personnel during the quarter,” said Stephen A. Van Oss, chief financial and administrative officer.

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Snap-on reports record earnings
10/23/08 – Snap-on Incorporated reported its third quarter net sales of $697.8 million increased $17.1 million, or 2.5 percent, over the same period last year. Gross profit improved to 44.7 percent of net sales in 2008 from 44.2 percent in 2007; operating expenses improved to 33.0 percent of net sales in 2008 from 34.4 percent in 2007.

Net earnings of $54.6 million increased 32.8 percent from $41.1 million in 2007.

"We are very encouraged by our third quarter results, especially given the current global economic challenges," said Nick Pinchuk, Snap-on's president and CEO. "We continue to focus on fortifying our already strong business models, pursuing geographic and customer diversification, and driving our value creating processes, including innovation and rapid continuous improvement.”

The Commercial & Industrial Group segment had sales of $338.1 million, up 3.1 percent. The Tools Group segment posted sales of $269.5 million, a 2.9 percent increase.

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Black & Decker experiences sales decline
10/23/08 - Black & Decker announced that net earnings for the third quarter of 2008 were $85.8 million or $1.42 per diluted share, versus $104.6 million or $1.59 per diluted share for the third quarter of 2007. Sales decreased 4 percent to $1.6 billion.

“Black & Decker generated solid earnings and cash flow in a very difficult business environment this quarter. Sales met our expectations despite weakening economic conditions in the U.S. and Western Europe. The actions we took earlier in the year to reduce costs helped our results this quarter, and we are taking additional steps in light of recent macroeconomic developments,” said Nolan D. Archibald, chairman and CEO.

The company said weak demand for housing-related and discretionary goods resulted in a 6 percent sales decline in the Power Tools and Accessories segment. In the U.S., sales decreased at a high single-digit rate for the Industrial Products Group and a double-digit rate for the Consumer Products Group.

Sales in the Hardware and Home Improvement segment decreased 13 percent, while the Fastening and Assembly Systems segment’s sales declined 2 percent.

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Kennametal posts 9 percent sales gain
10/23/08 – Kennametal Inc. said its sales for the quarter were $669 million, compared with $615 million in the same quarter last year, a 9 percent increase. Net income was unchanged at $35 million.

Its Metalworking Solutions & Services Group (MSSG) sales increased by 6 percent. Regionally, organic sales growth was led by Asia Pacific at 22 percent followed by Latin America, India and Europe at 7 percent, 6 percent and 2 percent, respectively. This offset a reduction in North American organic sales of 8 percent.

The Advanced Materials Solutions Group (AMSG) sales increased 15 percent.

The company expects organic sales growth of 0 to 2 percent in 2009.

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Dover reports 5.4 percent gain
10/22/08 – Industrial manufacturer Dover Corporation said its third quarter earnings were $190.3 million or $1.01 per share, compared to $182.1 million or 90 cents in the prior-year period. Revenue for the third quarter was $2.0 billion, an increase of 5.4 percent over the same period last year.

"While we are happy with our third quarter performance, we are also cognizant of the unsettled global economic climate. A number of end-markets served by our Industrial Products and Engineered Systems segments experienced diminished demand as the quarter wore on, and we think these trends will likely continue. However, our management teams have taken appropriate corrective actions, and are prepared to further their efforts to deliver strong results,” said CEO Ronald L. Hoffman.

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84 Lumber closes 20 stores
10/22/08 – In a further reflection of the nation’s housing slowdown, 84 Lumber announced that it has closed 20 stores. According to a story in the Pittsburgh Business Times, the building materials retailer previously closed nine stores in Alabama, Illinois and Oklahoma. In total, 160 jobs have been eliminated by the latest closings.

Click here to read the story.

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Sandvik to expand NC plant
10/22/08 – Cutting tools maker Sandvik plans to expand its Mebane, N.C., plant, investing $85 million and adding 51 jobs during the next three years. According to a report in the Triad Business Journal, the expansion will be supported in part by a $150,000 grant from the One North Carolina Fund, which provides financial assistance through local governments to attract business projects.

Click here to read the story.

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Kimberly-Clark’s sales increase
10/22/08 – Kimberly-Clark Corporation reported that net sales in the third quarter of 2008 advanced 8.2 percent to $5.0 billion. Diluted net income per share in the third quarter of 2008 was 99 cents compared with $1.04 in the prior year.

Sales of K-C Professional and other products went up 8.0 percent from the year-ago quarter. Globally, KCP generated double-digit growth in sales of higher-margin workplace and safety products. In North America, improvements of 3 percent in both price and mix were partially offset by a 4 percent reduction in sales volumes, the company said. Sales volumes softened somewhat as a result of slowing economic growth in combination with the company's strategies to raise prices and enhance the mix of products sold and in comparison to strong growth in the year-ago quarter.

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IDG to re-open warehouse in November
10/21/08 – The Industrial Distribution Group plans to re-open its tornado-damaged warehouse in late November, according to a story in the Gaston Gazette. The Belmont, N.C. facility suffered an estimated $7 million in damage from a tornado that struck last May. The company has been operating in a temporary facility since then, and plans to auction off about $1 million in inventory before moving into its new facility.

Click here to read the full story.

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MSC posts annual sales gain
10/21/08 – MSC Industrial Direct reported fiscal 2008 net sales of $1.78 billion versus net sales of $1.69 billion in fiscal 2007. Net sales increased 7.5 percent based on average daily sales. Net income for the year was $196.2 million, compared to $173.9 million in fiscal 2007.

Fourth quarter net sales were $448.6 million compared to net sales of $450.5 million in the prior year period. There were four fewer business days in the quarter compared to last year. Based on average daily sales rates during the period, net sales increased by 5.8 percent from the prior year period.

"We are pleased with our performance in the fiscal 2008 fourth quarter, which completed another very strong year for MSC," said David Sandler, president and CEO. "During the quarter we strongly executed on our plan to gain market share from smaller, less well capitalized competitors that cannot offer the same combination of product breadth, customer service, and financial strength as MSC. Those attributes become even more important to customers, both large and small, during challenging economic times, as they seek an MRO partner who can help them reduce their operating costs while also guarding against potentially costly breaks in their supply chain.”

He added that the deterioration in the credit markets has exacerbated the effect of a slowing economy on the industrial sector, which represents about 75 percent of total sales. He said MSC continues to enhance its presence and grow sales to non-industrial customers and in the large customer program.

The company expects net sales in the fiscal 2009 first quarter to be between $436.0 million and $446.0 million.

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3M reports 6.2 percent sales gain
10/21/08 – 3M announced third-quarter sales of $6.6 billion, an increase of 6.2 percent over third quarter of 2007. Net income was $991 million, or $1.41 per share, versus $960 million, or $1.32 per share in the corresponding period last year.

The company posted double-digit sales growth in its three largest businesses, namely Safety, Security and Protection Services, Health Care and Industrial and Transportation.

Segment trends were very similar to the first half of 2008 with continued growth across the company’s international operations. 3M sales in Latin America increased 26 percent over last year, while Europe and Canada achieved 8 percent and 9 percent sales growth, respectively. Sales in Asia Pacific were down 1 percent, or up 13 percent excluding the impact of the secular transition underway in the company’s optical film business.

Sales in the Industrial and Transportation segment increased 10 percent to $2 billion, with double-digit growth in adhesives and tape and abrasives. The segment saw double-digit sales growth in Asia Pacific and Latin America. Profits increased 8 percent to $407 million.

The Safety, Security and Protection Services segment posted sales of $974 million, up 27.1 percent. The company reported broad-based sales growth led by personal protection, protective window films and cleaning solutions for commercial buildings. There was double-digit sales growth in all geographic regions led by the U.S. and Asia Pacific.

Profits were up 41.6 percent to $222 million.

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Stanley reports slight sales increase
10/21/08 – The Stanley Works reported net sales of $1.12 billion for its third quarter, up 1 percent compared to last year. The increase was attributable to acquisitions (+3 pts.) and currency (+2 pts.), partially offset by lower organic sales (-4 pts.).

Industrial segment sales were flat. The company reported growth within its Engineered Storage and Hydraulics Tools businesses, which was more than offset by lower unit volumes within the Industrial & Automotive Repair Tools businesses. The Construction and DIY segment sales decreased 2 percent, driven by weakness in the U.S. and European markets.

"Stanley's solid performance in arguably the most difficult global economic conditions in recent memory is directly attributable to the diversity of the company's improved portfolio of businesses and end markets, as well as the intensity and commitment of our experienced management team,” said John F. Lundgren, chairman and CEO. “We have been preparing to operate successfully during a recession of unknown duration for quite some time now. Our priorities are to preserve our earnings base and strong cash flow during this period through a sharp focus on the key operating levers of cost management and asset efficiency."

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Eaton posts 25 percent sales gain
10/20/08 – Eaton Corporation announced net income per share of $1.87 for the third quarter of 2008, an increase of 9 percent over $1.71 in the third quarter of 2007. Sales in the quarter were $4.1 billion, 25 percent above the same period in 2007. Net income was $315 million compared to $258 million in 2007, an increase of 22 percent.

In the Hydraulics segment, third quarter sales were $638 million, 7 percent above the third quarter of 2007. Hydraulics markets in the third quarter grew 3 percent compared to the same period in 2007, with U.S. markets up 3 percent and non-U.S. markets up just under 4 percent.

“The U.S. and European hydraulics markets experienced a lower growth rate in the third quarter compared to the second quarter,” said Alexander M. Cutler, Eaton chairman and CEO. “We anticipate that the rate of growth in the fourth quarter will likely decline more, but still remain positive.

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Sterling Investment buys FCX Performance
10/17/08 – Private equity firm Sterling Investment Partners has completed the acquisition of a majority stake in FCX Performance Inc., a specialty flow control distributor serving the industrial valve and automation, and process instrumentation markets. Charles Simon, the founder of FCX, and other key members of senior management, including Charles Hale and Kevin Mahan, “co-invested significantly in the transaction and will continue to lead the business,” according to a press release.

Founded in 1984 and headquartered in Columbus, Ohio, FCX serves 26 Midwestern and Eastern states through three distribution centers and 15 branch locations.

"We consider FCX a very attractive investment. The vast majority of the company’s revenues are recurring in nature. The company has a unique position as a leader in specialty flow control distribution, with an unusually large geographic footprint, excellent technical support capabilities, and sticky customer relationships,” said William Macey, Jr., a Sterling managing partner.

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Motion Industries reports 7% sales increase
10/17/08 – Motion Industries reported sales of $907 million for the third quarter, a gain of 7 percent from $849.6 million in the same period last year. Nine-month sales for the period ending Sept. 30 were $2.68 billion, compared to $2.5 billion a year ago.

The distribution arm of Genuine Parts Company reported a quarterly profit of $77.2 million, compared to $69.6 million for the same period last year.

As a whole, Genuine Parts reported that sales were $2.9 billion, up 3 percent compared to the third quarter of 2007. Net income for the quarter was $131.0 million, an increase of 2 percent over $128.6 million recorded in the same period of the previous year.

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Air Liquide raises prices
10/17/08 – Air Liquide Industrial U.S. LP, the subsidiary of American Air Liquide Holdings Inc. that supplies bulk industrial gases throughout the U.S., announced that it will raise prices for its industrial gas customers.

Prices for bulk oxygen, nitrogen and hydrogen will increase approximately 15 percent. Carbon dioxide and dry ice prices will increase 10 percent. Prices for helium, which has been impacted worldwide by increased demand and limited sources, will increase 15 percent. Prices for argon will increase by 20 percent due to higher costs of production. These changes will become effective October 15 and will vary based on customer geographies, volumes and existing customer contracts.

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Industrial production plunges
10/16/08 – Industrial production plunged in September by the most since late 1974, largely reflecting fallout from hurricanes Gustav and Ike, according to the Associated Press. The Federal Reserve reported Thursday that production at the nation's factories, mines and utilities plunged 2.8 percent last month, on top of a 1 percent drop in August.

The Fed estimated that disruptions related to the hurricanes accounted for about 2.25 percentage points of the total drop in industrial production in September. In addition, a strike affecting the commercial aircraft industry also was a factor in the poor showing, accounting for around a half percentage point of the overall decline, the Fed said.

The drop in industrial production in September was the biggest since December 1974, when output fell 3.5 percent.

The latest showing on industrial activity was worse than economists expected. They were forecasting a decline of 0.8 percent.

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Watsco sales decline
10/16/08 – HVAC/R distributor Watsco said its third-quarter revenues were $475 million, representing a decrease of 12 percent in same-store sales. The company said sales results include higher pricing and an improved sales mix of higher-efficiency air conditioning equipment and lower unit volume from cooler summer temperatures in certain markets and the effects of reduced new housing starts. Earnings per share declined 8 percent to 84 cents per diluted share on net income of $23.3 million.

Gross profit was $127 million, with gross profit margins improving 150 basis-points to a record 26.7 percent.

"We continue to respond to market conditions effectively by raising selling margins and lowering operating costs as evidenced by the consistency of same-store operating margins,” said Albert Nahmad, Watsco’s president and CEO.

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Danaher’s sales and earnings up
10/16/08 – Danaher Corporation said its net earnings for the quarter were $372 million, or $1.11 per diluted share, an 11 percent increase compared to the 2007 third quarter net earnings of $335 million. Sales were $3.21 billion, 17.5 percent higher than the $2.73 billion reported for the 2007 third quarter.

"We delivered a strong performance in the third quarter including 4 percent revenue growth from existing businesses, $400 million of free cash flow and 13 percent adjusted EPS growth despite the negative impact of a strengthening U.S. dollar and, hopefully, a high water mark for commodity prices,” said H. Lawrence Culp, Jr., president and CEO.

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Parker posts record sales
10/16/08 – Parker Hannifin reported quarterly sales of $3.1 billion, an increase of 10 percent from $2.8 billion in the same quarter a year ago. Net income increased 9.0 percent to $250.2 million from $229.6 million in the first quarter of fiscal 2008.

"Current quarter results reflect our ability to deliver record performance in the face of a rapidly changing economic climate," said chairman, CEO and president Don Washkewicz. "We are particularly pleased that we delivered a four percent organic growth rate this quarter.

In the Industrial North America segment, first-quarter sales increased 10.1 percent to $1.1 billion, and operating income increased 3.4 percent to $160.5 million, compared with the same period a year ago.

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ITW’s sales up 11 percent
10/16/08 – Illinois Tool Works Inc. reported an 11 percent increase in revenues for the 2008 third quarter. Diluted income per share was 85 cents, an increase of 1 percent. Revenues were $4.148 billion versus $3.744 billion for the prior year period.

The double-digit operating revenue increase in the third quarter consisted of a 6.9 percent contribution from acquisitions and a 4.7 percent contribution from currency translation. Base revenues declined 0.8 percent in the quarter due to lower North American and international sales volumes partially offset by higher raw material price recovery. North American base revenues declined 2.1 percent and international base revenues increased a modest 1.2 percent in the quarter.

"While our financial results in the third quarter were clearly impacted by slowing end markets, our decentralized businesses continue to assess local market conditions and implement aggressive cost-cutting initiatives where appropriate," said David B. Speer, chairman and chief executive officer.

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Survey: Manufacturer index down
10/16/08 – Manufacturers will face increasingly difficult challenges in the near term, according to the quarterly Manufacturers Alliance/MAPI Survey on the Business Outlook—September 2008, a leading indicator for the industrial sector. The September 2008 composite index registered a drop to 48 from the 50 reported in the June 2008 report. At this level, the index indicates that overall manufacturing activity is expected to contract over the next three to six months.

In line with other recent economic indicators, the index is at the lowest point since a reading of 40 in December 2001, just after the 9/11 attacks, and the first time it has been below 50 since that time. The index was a solid 65 in September 2007.

“The trends in most of the individual indexes clearly reflect the recent slowdown in manufacturing activity and the forward-looking indexes point to a reduction in activity in the next three to six months,” said Donald A. Norman, Ph.D., MAPI economist and survey coordinator. “Events in the financial markets since mid-September will likely amplify the downturn in manufacturing activity in the United States and abroad.”

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Grainger reports 11 percent sales gain
10/14/08 – Grainger reported quarterly sales of $1.8 billion, an increase of 11 percent compared to the third quarter of 2007. Net earnings increased 28 percent to $140 million versus $109 million in 2007. Earnings per share grew 39 percent to $1.79, compared to $1.29 for the 2007 third quarter.

"Our third quarter and year-to-date results are a testimony to Grainger's winning strategy and our employees' ability to execute," said James T. Ryan, Grainger president and CEO. "Going forward, the credit crisis and its effect on the economy create uncertainty; however, our national scale and local inventory availability help customers be more efficient as they maintain their facilities during these challenging times."

Sales in the branch-based segment increased 10 percent. Sales were negatively affected by approximately 1 percentage point due to lower sales of seasonal products. The U.S. branch-based business raised prices in August to reflect higher costs from suppliers.

Sales in the U.S. branch-based business increased 10 percent, with the strongest growth coming from government and national account customers. Product line expansion also contributed to the strong sales performance in the quarter. The company has added approximately 150,000 new products since 2005.

Sales in Mexico and Acklands-Grainger were both up 17 percent. Lab Safety Supply’s sales gained 14 percent. Sales from the July 2008 acquisition of Highsmith, a direct marketing business serving libraries, contributed all of the sales growth for the quarter; excluding the acquisition, the rest of the business was down 5 percent.

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Ingersoll-Rand lowers guidance
10/14/08 – Ingersoll-Rand revised its estimated third-quarter adjusted diluted earnings per share to the range of 98 cents to $1.00. Management's previous EPS estimate for the third quarter of 2008 was $1.05 to $1.10 from continuing operations.

"Our initial forecast for the third quarter of 2008 was based on lower growth expectations compared with the first half of the year as we anticipated weaker results in many of our key end markets," said Herbert L. Henkel, chairman, president and CEO. "The impact of the slowdown was more significant than prior expectations. We had lower than expected revenues in all of our business segments, due to weaker North American and Western European markets, which were particularly slower in September. The strengthening of the U.S. dollar against the Euro during the third quarter was also a drag on revenue growth.

The company anticipates revenue of approximately $4.3 billion, below its forecast of $4.4 billion.

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Zep launches new line
10/13/08 – Zep Inc. announced the launch of its new Zep Professional product line focusing on the industrial distribution market. Zep’s product portfolio includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, and pest and weed control products.

Zep Inc. recently announced its goal of obtaining 10 to 15 percent of its revenue from sales of product through industrial distributors.

“By focusing on the voice of the customer, it became clear that nearly 40 percent of the U.S. customer base prefers the services that industrial distributors have to offer,” said John K. Morgan, chairman, president and CEO. “We are committed to developing products and services desired by customers and making them available in ways most appropriate for the customer.”

Zep has entered into agreements with a select group of distributor partners focusing on strategic market segments to the company, including W.W. Grainger; Lab Safety Supply; Graybar Electric Company; R3 Reliable Redistribution Resource; and VWR International to offer the new Zep Professional product line to their customers.

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Fastenal’s sales up 17.1 percent
10/13/08 – The Fastenal Company reported that net sales for the three-month period ended Sept. 30 totaled $625.03 million, an increase of 17.1 percent over $533.75 million in the third quarter of 2007. Net earnings increased from $62.1 million in the third quarter of 2007 to $72.9 million, an increase of 17.3 percent.

Net sales for the nine-month period totaled $1.79 billion, an increase of 16.4 percent over net sales of $1.54 billion in the first nine months of 2007.

During the first nine months of 2008, Fastenal opened 140 new stores.

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McJunkin Red Man buys LaBarge Pipe & Steel
10/10/08 – McJunkin Red Man Corporation announced the completion of the acquisition of St. Louis-based LaBarge Pipe & Steel Company. LaBarge Pipe & Steel, founded in 1952, is a distributor of carbon steel pipe (predominantly large diameter pipe) for use primarily in the North American energy infrastructure market.

McJunkin Red Man paid $160 million for LaBarge and will pay up to $45 million more if LaBarge meets certain earnings targets in 2008 and 2009, according to a filing McJunkin made with the federal Securities and Exchange Commission.

LaBarge operates four sales offices in St. Louis, Houston, Birmingham, Ala. and Charlotte, N.C. and a manufacturing facility in Wagoner, Okla.

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Survey predicts export growth to slow
10/10/08 – The growth of total U.S. exports should slow from 8.4 percent in 2008 to 7.3 percent in 2009, according a new MAPI quarterly forecast of U.S. exports.

“Recent data which show that the U.S. economy may have lapsed into a recession, and that growth in other key industrialized economies has either stalled or contracted, further augments anxieties over the magnitude of the global slowdown,” said economist Cliff Waldman said. “This raises the specter of a more rapid decline in global growth than had been expected and creates concerns about the near-term outlook for U.S. export demand, the principal positive element in the U.S. economic picture during the past year.”

The study notes that major economies such as Germany, Japan, and France slipped into negative growth in the second quarter of 2008.

Gross domestic product (GDP) growth in non-U.S. industrialized countries is expected to register 0.6 percent during the fourth quarter of 2008, then accelerate slowly to 1.5 percent during the first quarter of 2009 and 1.7 percent during the second quarter of 2009. Contingent upon a recovery in the troubled U.S. economy, MAPI forecasts industrialized country growth to recover more fully to 2.1 percent during the third quarter of 2009 and 1.9 percent during the fourth quarter of 2009.

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PTDA sales drop in August
10/10/08 – The Power Transmission Distributors Association (PTDA) reported that U.S. distributors’ overall sales of PT/MC products fell 1.4 percent in August 2008 compared to July 2008. When matched up against sales in the same month last year, sales in August 2008 were also down by 1.2 percent. Accounts receivable collection days increased 1.8 percent since July 2008. The confidence index of U.S. distributors for August rose 0.2 points to 5.6 (on a 10-point scale).

Canadian distributors reported an 11.4 percent loss in sales in August 2008 compared to July 2008. Sales over the same period last year were down 7.0 percent. Accounts receivable collection days rose dramatically, by 11.4 percent compared to July 2008. In August 2008, the confidence level of Canadian distributors dropped 0.4 points to 5.3 (on a 10-point scale).

U.S. manufacturers’ sales rose slightly by 0.2 percent in August 2008 when compared to July 2008. Sales in August 2008 fell 0.2 percent compared to the same period last year. Orders in August 2008 were down 9.3 percent over July 2008. The confidence level of U.S. manufacturers fell 0.1 points to 5.3 (on a 10-point scale).

Canadian manufacturers’ sales decreased 9.0 percent in August 2008 compared to July 2008. Sales were down 13.9 percent when compared to the same period last year. The confidence level of Canadian manufacturers decreased 0.1 to 5.0 (on a 10-point scale) from July to August 2008.

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ProBuild buys CTX Builders Supply
10/08/08 – ProBuild Holdings has purchased CTX Builders Supply, a manufacturer of wall panels, roof and floor trusses and distributor of lumber. A division of Centex Homes, CTX Builders Supply operates six component manufacturing and distribution centers primarily serving Centex Homes’ operations. Terms of the sale were not disclosed.

The six facilities located in Albermarle, N.C., Plant City, Fla., Buda, Texas, Carrollton, Texas, Phoenix, Ariz., and Visalia, Calif. will fortify ProBuild’s East, South and West regions. The Phoenix location will provide ProBuild a presence in the fourth largest residential construction market in the U.S.

“This purchase deepens a long and valued relationship between ProBuild and Centex Homes,” said Paul W. Hylbert, ProBuild’s CEO. “Supporting our manufacturing strategy, this transaction is designed to enhance our current footprint and product offerings to better meet the needs of our customers.”

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Kaman acquires INRUMEC of Puerto Rico
10/07/08 – Kaman Industrial Technologies Corporation has acquired Industrial Rubber and Mechanics, Incorporated (INRUMEC) of Puerto Rico. The transaction was completed on Oct. 3 and terms were not disclosed.

INRUMEC, founded in 1963, is a distributor of fluid power products; industrial and hydraulic hoses; belting and conveyer systems; pipe, tube, fittings and valves; and packaging machinery to such diverse markets as food, beverage, pharmaceutical, cement and aggregate. The company is also a manufacturer of hydraulic hose assemblies for the same end markets. It has a branch and regional distribution facility in Gurabo as well as branches located in Bayamon, Ponce and Mayaguez. The company has annual sales of approximately $13 million.

"Joining Kaman will ensure continued profitable and value added growth for INRUMEC. The addition of Kaman's power transmission lines to our current offerings will be well received in the marketplace. Becoming part of a larger organization will benefit our customers and employees and position us for growth in the Caribbean basin," said INRUMEC president Thomas von Hillebrandt.

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Mayer Electric to buy Electric Supply
10/07/08 – Mayer Electric Supply of Birmingham, Ala., announced an agreement to purchase Electric Supply of Macon, Ga.

“The opportunity to join forces with Mayer was one we are very happy to conclude. I’ve known Mayer quite well for about 20 years and they have what may be the best reputation in the industry for customer service and high ideals,” said Bob White, owner and president of Electric Supply of Macon, who will become branch manager of the Macon location.

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Grainger opens Panama branch
10/06/08 – Grainger announced the opening of its first branch in Panama. A 23,000 sq. ft. showroom and store facilities houses more than 20,000 products, including motors and power transmission, electrical, lighting, cleaning and painting supplies, safety equipment, material handling and power tools.

"Grainger selected Panama as its second expansion market in Latin America, after Mexico, because it offers exciting business opportunities and a business-friendly environment," said Bonnie McIntyre, vice president, International Market Development.

Grainger said a network of sales representatives throughout the country will help institutions that maintain locations in other areas of Panama. Grainger plans to continue to build its presence in Panama by adding more products and services to address local customer needs.

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Autocrib ends WinWare contract
10/06/08 – AutoCrib announced the end of its contract to provide RoboCrib and other industrial vending machines to WinWare, developer of CribMaster software. Effective Oct.1, AutoCrib software and industrial vending solutions, including the RoboCrib, will be available only through AutoCrib and its authorized distributors.

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