Distribution Industry News:
United Stationers
acquires Emco Distribution
Home
Depot sales and earnings down
Paslode cleared of
dumping charges
Hagemeyer
introduced safety catalog
WinWholesale
opens three branches
ITW revenues up 11.4
percent
Praxair announces
price increase
Barnes adds 4,200 products to catalog
Kaman
inks four supplier agreements
General Bearing reports sales decline
Grainger
reports July sales
Ames
True Temper posts sales gain
Machine tool consumption remains level
ISA and NAW announce health insurance plan
ITW to sell
two businesses
Lawson
settles government suit
Click here to go to Industry News Archives
United Stationers acquires Emco
Distribution
08/20/08 – United Stationers Supply Co. has signed a definitive purchase
agreement with Emco Distribution LLC to acquire Emco's New Jersey
business. The $15 million purchase price, subject to post-closing
adjustments, will be funded under the company's existing credit
agreement. This transaction is expected to close in early September.
"We are absolutely delighted
to have the opportunity to work with Emco's customers and continue
providing them with the quality of customer service that they are
accustomed to," said Cody Phipps, president of United Stationers Supply.
"We have outstanding marketing tools, a highly efficient distribution
network and an extensive product offering to help support their growth."
He added that the
transaction will be accretive to earnings beginning in 2008 and will add
incremental annual revenues of approximately $70 million.
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Home Depot sales and
earnings down
08/19/08 – The Home Depot reported fiscal 2008 second-quarter
consolidated net earnings of $1.2 billion, or 71 cents per diluted
share, compared with $1.6 billion, or 81 cents per diluted share, in the
same period in fiscal 2007. Sales for the quarter totaled $21.0 billion,
a 5.4 percent decrease from the second quarter of fiscal 2007,
reflecting negative comparable store sales of 7.9 percent, offset in
part by sales from new stores.
"We continue to see pressure
on our market and the consumer, generally," said Frank Blake, chairman
and CEO. "Despite the macroeconomic conditions, we saw improved
execution in our merchandising and operations initiatives during the
past quarter."
The company expects fiscal
2008 sales will decline by approximately 5 percent, and diluted earnings
per share from continuing operations will decline by approximately 24
percent.
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Paslode cleared of dumping charges
08/18/08 – Paslode has been cleared by the U.S. Department of Commerce
of accusations that it dumped nails in the U.S. market that it produces
in China. On June 16, the DOC published its final finding regarding the
antidumping duty investigations on imports of steel nails from China and
the UAE. Nails from China (except for those produced by Paslode) were
found to be dumped in the USA; nails from UAE were not, and on July 9,
the U.S. International Trade Commission voted affirmatively that the
petitioners are experiencing material injury as a result of sales at
less than fair value of imported Chinese nails.
"From the very beginning of
this investigation, we have maintained that our business practices were
and are ethical and fair," said Mark Boutelle, general manager of
Paslode. "Paslode proudly produces nails in the U.S. and throughout the
world. We offer innovative products and services, fair pricing, and
quality that our end-users and channel customers can continue to rely on
to meet their needs."
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Hagemeyer introduced safety
catalog
08/18/08 – Hagemeyer introduced its 652-page, 2008-2009 Safety Products
catalog, featuring safety, industrial hygiene, and firefighting.
Product categories include:
Air & Environmental Monitoring, Cleanroom & Critical Environment,
Communications, Domestic Preparedness, Facility & Industrial Safety,
Firefighting & Technical Rescue, First Aid, Medical & Health, Head, Eye,
Face & Hearing Protection, High Visibility & Traffic Control, Law
Enforcement & Tactical, Outdoor Safety, Protective Apparel, and
Respiratory Protection.
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WinWholesale opens three branches
08/18/08 – WinWholesale Inc. has opened Winnelson companies in Lakeland,
Fla., Bloomington, Ill., and Clinton, Mo., to provide residential and
commercial contractors with plumbing supplies, equipment and
accessories. Each location has a warehouse, counter sales and pickup,
and delivery service. In addition, Clinton Winnelson has a product
showroom.
“WinWholesale is continuing
its strategic expansion in markets where we know our companies can make
a difference by serving contractors with high quality products and a
personal brand of customer service,” said Monte Salsman, WinWholesale
chief operating officer.
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ITW revenues up 11.4 percent
08/15/08 – Illinois Tool Works Inc. reported an operating revenue
increase of 11.4 percent for the three months ended July 31. The
double-digit increase in revenue growth for the three months was due to
contributions from translation, acquisitions and base revenues.
On a segment basis, the
Polymers and Fluids segment had the largest gain, at 29.8 percent,
followed by Power Systems and Electronics at 17.0 percent, and
Industrial Packaging, which increased by 16.7 percent.
Looking ahead, ITW forecasts
a third quarter 2008 diluted income per share from continuing operations
of 93 cents to 99 cents, assuming total company revenue growth of 10
percent to 14 percent.
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Praxair announces price increase
08/14/08 – Praxair Distribution notified its industrial, medical and
specialty gas cylinder customers in the U.S. and Canada of price
increases effective Sept. 1.
Increases will be up to 30
percent for helium, hydrogen, fuel gases and rare gases; 15 percent for
oxygen, nitrogen, argon, carbon dioxide/dry ice and specialty gases; 15
percent for cylinder rental and facility fees; and 5 percent for
equipment and consumables.
In a company statement,
Praxair said the increases are “in response to rapidly escalating
energy, fuel and other operational costs, current supply/demand
imbalances and increases in the cost of capital goods required to
support product supply to customers.”
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Barnes adds 4,200
products to catalog
08/13/08 – Barnes Distribution launched its new Master Catalog, adding
more than 4,200 new products to its regularly stocked items. New
features in the catalog include a welding section, a redesigned fittings
and hose section, and a numeric part number index to help customers
quickly and easily locate what they need.
Distributors can receive a
free copy of the catalog by calling 866-GET-MROP.
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Kaman inks four supplier
agreements
08/12/08 – Kaman Industrial Technologies announced multiple distribution
agreements as a fully authorized North American distributor of Energizer
Battery, Flir Systems Inc., Guardair Corporation and Walter Surface
Technologies.
“We are very pleased to be
aligned with leading manufacturers such as these,” said David Grebowski,
accessory products manager for Kaman Industrial Technologies. “We are
continuously working to enhance our ability to serve customers’ needs
for high-quality product solutions. The addition of these four lines is
the latest in our efforts to expand the maintenance products portfolio
within Kaman’s Accessory Products category.”
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General Bearing reports
sales decline
08/12/08 – General Bearings reported sales of $35.1 million for the
quarter ended June 30, compared to $32.5 million in the same period last
year. Six-month sales were $69.2 million, compared to $64.1 million for
the first six months of 2007. Net income was $1.5 million for the
quarter, or 40 cents per diluted share.
Based in West Nyack, N.Y.,
General Bearings manufactures ball bearings, tapered roller bearings,
spherical roller bearings, cylindrical roller bearings, and bearing
components.
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Grainger reports July sales
08/12/08 – Grainger said July sales grew 11 percent compared to July
2007. The increase included a 1 percent gain from foreign currency
primarily due to the strength of the Canadian dollar. Softer sales of
seasonal products negatively affected sales by approximately 1
percentage point. The acquisition of Highsmith Inc. on July 10 by Lab
Safety Supply improved sales by 1 percent.
The branch-based segment and
Lab Safety Supply each grew by 10 percent, while Acklands-Grainger’s
sales were up 17 percent for the month.
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Ames True Temper posts sales
gain
08/11/08 – ATT Holding Co., parent of Ames True Temper, reported net
sales for the third quarter of $162.6 million, a 3.6 percent increase
compared to $156.9 million for the same period a year ago. Net income
was $6 million, compared to $1.7 million for the same quarter last year.
"We are pleased with our
financial performance this quarter, despite slow economic conditions in
the U. S. and continued upward pressure on raw material costs," said
Rich Dell, president and CEO. "Our third quarter results reflect our
continued efforts to efficiently manage costs during this soft economy."
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Machine tool
consumption remains level
08/11/08 – June U.S. manufacturing technology consumption totaled
$360.43 million, according to AMT - The Association For Manufacturing
Technology and AMTDA, the American Machine Tool Distributors’
Association. This total, as reported by companies participating in the
USMTC program, was level with May, and up 2.0 percent from the total of
$353.40 million reported for June 2007. With a year-to-date total of
$2,318.34 million, 2008 is up 15.3 percent compared with 2007.
“I think everyone is excited
that the underpinning for productivity in our economic growth –
manufacturing technology equipment – continues to grow at double digit
rates through the second quarter,” said John B. Byrd III, AMT president.
U.S. manufacturing
technology consumption is also reported on a regional basis for five
geographic breakdowns of the United States. Click
here for more.
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ISA and NAW
announce health insurance plan
08/11/08 – The Industrial Supply Association (ISA) and the National
Association of Wholesaler Distributors (NAW) announced the launch of a
health insurance program for ISA members. The ISA/NAW Health Insurance
Program offers both comprehensive group health insurance plans with
flexible benefit options and fully insured and comprehensive group
Preferred Provider Organization (PPO) plans. Each is designed for the
exclusive use of NAW and ISA members and all members are eligible to
participate.
“The partnership between ISA
and NAW can only benefit association members,” said John Buckley,
executive vice president of ISA. “The variety of health insurance plans
and programs available could mean tremendous savings for companies
choosing to participate.”
The NAW/ISA Health Insurance
program also offers dental and supplemental life insurance options along
with an AD&D benefit. These could offer participating organizations
greater flexibility, reduce costs and may help companies hire and retain
employees. There are also several consumer-driven, account-based
insurance program options that can be tailored to fit companies’ needs
including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs)
and more.
Click
here for more information.
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ITW to sell two businesses
08/11/08 – llinois Tool Works Inc. plans to sell its Decorative Surfaces
segment consisting of the Wilsonart and related laminate businesses and
the Click Commerce industrial software business. ITW has retained
Goldman Sachs to advise on the divestiture process for the Decorative
Surfaces units.
Wilsonart was acquired in
1999 by ITW as part of the Premark International transaction. In 2007,
the decorative surfaces segment had revenues of $1.2 billion and
operating margins of 13 percent. Wilsonart manufacturers and distributes
a variety of custom construction products for commercial, residential
and renovation applications.
Acquired by ITW in October
of 2006, Click Commerce is a supplier of software solutions and
consulting services to a number of large, international companies. With
2007 revenues of $67 million, Click Commerce offers solutions in key
categories such as supply chain and parts optimization, clinical
research, contingent labor management and commerce.
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Lawson settles government suit
08/11/08 – Lawson Products agreed to pay $30 million as part of a
deferred prosecution agreement with the government over a kickback
scheme related to the company’s former customer loyalty program.
In entering into the
agreement, Lawson accepted responsibility for its actions and agreed to
pay a $30 million monetary penalty, which will be paid in three equal
installments of $10 million over the next 24 months. The mail fraud
charge deferred by the agreement will be dismissed permanently if Lawson
Products satisfies all of the terms of the agreement during the next
three years.
"We are pleased to have
reached this agreement with the U.S. Attorney's Office, which enables us
all to move forward with our business plan," said Neil E. Jenkins,
executive vice president and general counsel. "Throughout this process,
we have been committed to working with the government to uncover the
truth, and we have promised our continued cooperation. We are confident
we have taken the necessary actions and implemented the proper
processes, oversight and programs so that such events are not repeated
and we can continue to run our business with integrity."
Click
here to read more from the Chicago Tribune.
As a result of the
settlement, the company recorded charges of $34 million for the second
quarter, resulting in a net loss of $29.7 million. Net sales for the
quarter were $126.3 million, compared to $129.2 million for the same
period last year. The company attributed the sales loss to lower sales
in the MRO business.
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