Distribution Update

BSA reports strong growth in sales

2011-05-12T05:18:00.000-07:00

Sales increased 17 percent in 2010 compared to 2009

A report on the results of the Bearing Specialists Association (BSA) 2011 Distributor Survey revealed strong sales and an improving economy. The data, reported by Carl James, BDI-Canada, at the BSA 45th Annual Convention, revealed that in 2010 the aggregate sales volume for participating distributors was $2,250,000,000 this represents an increase of 17.2% over the 2009 volume of $1,920,000,000. Estimates are that 2011 will continue this trend with a gain of 7.8%.

As James pointed out, if the industry grows 12% in 2011, “we reach $2.70 Billion in Sales and Exceed 2008 in 2011.” A closer look at the end-users reflects a changing, dynamic, and perhaps more resilient marketplace than originally expected.

Distributors also demonstrated increased productivity – and comparable profitability as well – by holding the line on hiring. In 2010 survey respondents reported the aggregate number of employees had grown to 17,000, an increase of just 1.8% over 2009. In 2007 the aggregate number of employees was 17,600; this number fell to 16,600 in 2008.

In presenting the survey results, James noted that this was the fifth year for the BSA Distributor Survey. Survey results in 2011 were based on 25 BSA member respondents among 40 BSA members. Respondents represent 90% of the dollar value of bearings sold through BSA members. The report is prepared by the Profit Planning Group LLC (PPG). Completed surveys are sent directly to PPG where they are held in confidence. PPG accumulates data and reports the results.

Distribution Update joins Trades Hub network

2011-05-06T10:04:00.000-07:00

Our blog joins the mikeroweworks.com family of online industry/trade information via Mike Rowe’s new “Trades Hub” platform

Distribution Update is now part of the Trades Hub network, an online information-sharing initiative from skilled trades-champion Mike Rowe, host of the Discovery Channel’s Dirty Jobs with Mike Rowe.

Rowe launched www.mikeroweworks.com in 2008 as a resource and community forum for skilled trades people. Trades Hub takes the effort a step further, expanding Rowe’s reach to include a wider range of news and information for workers in trades such as construction, welding, landscaping, HVAC, manufacturing, and more. Trades Hub is a network of blogs, news, articles and other information about the trades and for the trades.

Users can access information by trade, topic, location, source and date at http://tradeshub.mikeroweworks.com/landscaping/woodworking/. Or, click the Trades Hub icon in the right-hand column of the Distribution Update page.

Industrial distributors continue strong performance

2011-05-06T09:07:00.000-07:00

Kaman Industrial Technologies, DXP Enterprises and others post double-digit sales gains in the first quarter

For proof that U.S. manufacturing activity remains strong and is leading the economic recovery, look no further than some of this week’s earnings reports from some of the largest industrial distributors in North America.

Double-digit sales gains for companies like Kaman Industrial Technologies, Airgas and DXP Enterprises came on top of yet another strong economic report from the Institute for Supply Management, which reported this week that its Purchasing Manager’s Index remained above 60 in April, marking the 21st straight month of growth in the manufacturing sector. A PMI of higher than 50 indicates growth; a PMI of less than 50 indicates contraction.

Here’s a look at some of the quarterly distribution results released this week:

Sales grew 33% for Kaman Industrial Technologies, reaching a record $239 million compared to $179 million a year ago. The results reflect growth from acquisitions made in 2010 and a healthier business environment compared to the same period a year ago, the company said.

Airgas reported fiscal fourth-quarter sales of $1.1 billion, an increase of 12% over the prior year. Total same-store sales increased 11%, with hardgoods up 14% and gas and rent up 9%.

Sequentially, total sales increased 7% from the third quarter and sales per day increased 3%. Net earnings were $63 million, or 74 cents per share.

The company cited strength in manufacturing, medical, utilities and petrochemical industries.
For the full year, Airgas’ sales increased 10% from the prior year to $4.3 billion. Net earnings for the year were $250 million, or $2.93 per diluted share.

At DXP Enterprises, first-quarter sales rose 25% to $183 million, compared to $147 million in the same period a year ago.

Net income rose nearly 77% to $6.3 million, or 42 cents per share, compared to $3.6 million, or 26 cents per share a year ago.

The company cited improvement in all if its end markets, particularly oil and gas.

AIT acquires Gulf Coast Bearing

2011-05-04T05:07:00.000-07:00

Gulf Coast Bearing serves customers in South Texas

Applied Industrial Technologies (NYSE: AIT) has acquired the assets of Gulf Coast Bearing & Supply Co. of Corpus Christi, Texas. Gulf Coast Bearing & Supply is a full line bearing and power transmission distributor with locations in Corpus Christi and Pharr, Texas. Terms of the sale were not disclosed.

Founded in 1985, Gulf Coast Bearing & Supply serves a broad range of customers in South Texas, primarily in the petrochemical, food processing, construction and agriculture industries. Both existing locations will become fully functional Applied® service centers with access to more than four million parts.

"Gulf Coast Bearing & Supply is one of the leading independent bearing and power transmission distributors in its territory and will be an important addition to the North American network of Applied Industrial Technologies service centers," says Todd A. Barlett, Vice President – Acquisitions and Global Business Development for Applied. "The acquisition is a win-win for the customers of both companies as we expand our product offering and technical support into this region."

"We're proud to be part of a team that can provide world-class customer support in South Texas," says Jim Breen, President of Gulf Coast Bearing & Supply. "As part of Applied, our customers will benefit from a wider selection of products and outstanding technical service."

With approximately 470 facilities and 4,600 employee associates across North America, Applied Industrial Technologies is an industrial distributor that offers more than 4 million parts critical to the operations of MRO and OEM customers in virtually every industry. In addition, Applied provides engineering, design and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber and fluid power shop services. Applied also offers maintenance training, plus solutions to meet inventory and storeroom management needs that help provide enhanced value to its customers. For its fiscal year ended June 30, 2010, Applied posted sales of $1.89 billion.

Electronics distributors post strong results

2011-04-29T06:34:00.000-07:00

Arrow reports strongest first-quarter results in company’s history; Avnet reports 40% growth for fourth straight quarter

The electronics sector continues to perform well despite lingering concerns about the potential impact on the industry from the Japan earthquake and tsunami in March. Two of the industry’s leading distributors reported strong sales and earnings this week, noting continued demand for electronics and computer products worldwide.

Arrow Electronics reported first-quarter profit of $136.3 million on sales of $5.22 billion. The distributor’s global sales of electronic components hit $3.89 billion, a 24% increase over the previous year, while its enterprise computing solutions sales reached $1.34 billion, a 21% increase over the prior year.

"Our growth strategy and the related momentum we built throughout the second half of 2009 and 2010 have carried over into the first quarter of 2011, with the Arrow team generating the strongest first-quarter results in our history. Revenue and earnings per share came in well ahead of our expectations, driven by strength in both of our business segments," said Michael J. Long, president and CEO.

At Avnet, sales rose 40% in the fiscal third quarter ended April 2, marking the company’s fourth consecutive quarter of 40% year-over-year growth.

Avnet Electronics Marketing, its electronic components business, saw record revenue of $3.93 billion, a 36% increase year-over-year and a 10% sequential increase. The company said demand for electronic components remained strong during the quarter in all of its main regions, noting that growth was strongest in Europe, the Middle East and Africa.

Sales for Avnet Technology Solutions, its computer-related business, rose 47% year-over-year.

Looking ahead, Avnet noted the potential impact of the Japan earthquake and tsunami in the June quarter, citing a wider than normal sales and earnings range. Overall company sales are estimated at between $6.6 billion and $7.3 billion, with earnings per share of between $1.10 and $1.22.

“While it is difficult to gauge the impact of the Japan earthquake and tsunami on our June quarter revenue, we continue to work closely with our suppliers to understand what products are most impacted and meet the needs of our supply chain customers,” the company said in a statement announcing the results.

Kennametal sales soar 25% in Q3

2011-04-28T05:26:00.000-07:00

Company also raises guidance for remainder of fiscal 2011

Kennametal Inc. today reported record third quarter fiscal sales of $615 million, a 25 percent increase compared to the same quarter last year.

Carlos Cardoso, Kennametal's Chairman, President and Chief Executive Officer said, "March quarter results continue to demonstrate that our global team is successfully executing our established strategies. We realized organic sales growth of 25 percent year-over-year, despite strong comparisons from the prior year. This growth reflected higher customer demand in both our served end markets as well as geographic regions. Even at a sales level that is lower than prior peak, we achieved a record operating margin for the March quarter. In addition, we again increased our guidance for sales and earnings per share for the current fiscal year. We continue to outperform the forecasted industrial production rate and expect to maintain our strong operating leverage."

Cardoso added, "Our long-term strategies remain consistent -- we continue to balance our served end markets, business mix and geographic presence. Kennametal is a 'Breakaway' company that has demonstrated its ability to be profitable throughout the economic cycle."

Here is a breakout of Kennametal’s segments for the quarter:
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• Industrial segment sales of $392 million grew 28 percent from $306 million in the prior year quarter, driven by organic growth of 29 percent and a 1 percent favorable foreign currency impact, partially offset by an unfavorable impact due to fewer business days. On an organic basis, sales increased in all served market sectors led by strong growth in general engineering and transportation sales of 34 percent and 29 percent, respectively. On a regional basis, sales increased by approximately 32 percent in Asia, 29 percent in Europe and 23 percent in the Americas.
• Industrial segment operating income was $54 million compared with $11 million for the same quarter of the prior year. Absent restructuring and related charges recorded in both periods, Industrial operating income was $56 million compared with $26 million in the prior year quarter. The primary drivers of the increase in operating income were higher sales volume and price realization, improved capacity utilization and incremental restructuring benefits. These benefits were partially offset by higher raw material costs and the restoration of temporary cost reductions. Industrial adjusted operating margin increased to 14.3 percent from 8.6 percent in the prior year.
• Infrastructure segment sales of $223 million increased 19 percent from $187 million in the prior year quarter due to organic growth. The organic increase was driven by higher sales in the energy and earthworks markets of 21 percent and 17 percent, respectively. On a regional basis, organic sales increased by approximately 20 percent in the Americas, 15 percent in Asia and 11 percent in Europe.
• Infrastructure segment operating income was $36 million, compared with $19 million in the same quarter of the prior year. Absent restructuring and related charges recorded in both periods, Infrastructure operating income was $37 million in the current quarter compared with $26 million in the prior year quarter. Operating income improved primarily due to higher sales volume and price realization, increased capacity utilization and incremental restructuring benefits, partially offset by higher raw material costs and the restoration of temporary cost reductions. Infrastructure adjusted operating margin increased from the prior year quarter to 16.5 percent from 13.8 percent.

Kennametal executives in a press release said global economic conditions and worldwide industrial production continues to remain positive. As such, Kennametal expects its fiscal 2011 organic sales growth to be 24 percent to 25 percent. This is in line with our goal of growing at least two times the rate of increase in global industrial production.

The company expects EPS for fiscal 2011 to be in the range of $2.75 to $2.85 per share, excluding charges related to previously announced restructuring programs, increased from the previous range of $2.50 to $2.65 per share, excluding charges related to restructuring.

Kennametal also announced that its Board of Directors declared a regular quarterly cash dividend of $0.12 per share. The dividend is payable May 25, 2011 to shareowners of record as of the close of business on May 10, 2011.

Parker Hannifin reports record Q3 results

2011-04-27T06:21:00.000-07:00

Sales increase 24 percent; company raises guidance for year

Diversified manufacturer Parker Hannifin Corporation today reported record results for the fiscal 2011 third quarter ended March 31, 2011. Fiscal 2011 third quarter sales were $3.2 billion, a third quarter record representing an increase of 23.9 percent from $2.6 billion in the same quarter a year ago. Net income was an all-time quarterly record of $281.6 million, an increase of 82.4 percent from $154.4 million in the third quarter of fiscal 2010. Earnings per diluted share for the quarter were also an all-time quarterly record at $1.68, compared with $0.94 in last year's third quarter.

Parker manufactures a number of products ranging from motion and control technologies, hose and accessories such as valves and fittings.

"Our third quarter performance reflects the continued strength that we see across our end markets and regions and our ability to leverage that strength into higher operating margins and record quarterly earnings per share," said Chairman, CEO and President Don Washkewicz. "Customer orders also increased significantly in the quarter. All segments reported a double-digit increase in sales and order levels. Total organic sales increased 21 percent in the quarter with acquisitions contributing 1 percent and currency contributing 2 percent. Margin performance was also a positive as total segment operating margin was a third quarter record of 14.8 percent, led by Industrial North America segment margin of 16.1 percent and Industrial International segment margin of 15.5 percent. Further reflecting our continued strong balance sheet and cash flow, the Board of Directors today approved a 16 percent increase in our quarterly dividend from 32 cents to 37 cents per common share."

In the Industrial North America segment, third quarter sales increased 23.0 percent to $1.2 billion, and operating income was $189.5 million compared with $133.6 million in the same period a year ago.

In the Industrial International segment, third quarter sales increased 29.9 percent to $1.3 billion, and operating income was $199.8 million compared with $109.3 million in the same period a year ago.

In the Aerospace segment, third quarter sales increased 12.1 percent to $503.8 million, and operating income was $69.0 million compared with $49.8 million in the same period a year ago.

In the Climate and Industrial Controls segment, third quarter sales increased 24.9 percent to $264.5 million, and operating income was $22.6 million compared with $16.3 million in the same period a year ago.

The company reported the following orders by operating segment:
• Orders increased 20 percent in the Industrial North America segment, compared with the same quarter a year ago.
• Orders increased 22 percent in the Industrial International segment, compared with the same quarter a year ago.
• Orders increased 44 percent in the Aerospace segment on a rolling 12-month average basis.
• Orders increased 14 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.

For fiscal 2011, the company has increased guidance for earnings from continuing operations from the previous range of $5.80 to $6.20 per diluted share to a new range of $6.20 to $6.40 per diluted share.

Washkewicz added, "Our performance year-to-date reflects the ongoing economic recovery and the continued execution of our Win Strategy, now in its tenth year. Parker continues to position itself favorably for continued earnings growth by focusing on premier service to our customers, lean operations and ongoing investments in leading edge innovations across the company. Parker expects to deliver record earnings in fiscal 2011, with a strong order backlog going into fiscal year 2012."

Infor acquires Lawson Software for $2 billion

2011-04-27T05:19:00.000-07:00

Infor,investment firm had been in negotiations with Lawson since March

Lawson Software Inc. has signed a definitive agreement to be acquired by GGC Software Holdings, Inc., an affiliate of Golden Gate Capital and software provider Infor, in a transaction valued at approximately $2 billion. Under the terms of the merger agreement, stockholders of Lawson will receive $11.25 per share in cash.

The announcement marks the culmination of Lawson Software’s evaluation of strategic alternatives and review and negotiation of a proposal from Golden Gate and Infor that began prior to, and was later publicly confirmed in a press release on March 11, 2011. During its evaluation, Lawson conducted a comprehensive market assessment and contacted other potential acquirers including competing global providers of enterprise applications and financial buyers.

"We are pleased to have entered into a transaction that will offer Lawson stockholders an attractive valuation," said Harry Debes, Lawson's president and chief executive officer. "After a thorough examination of the strategic alternatives available to the company as well as extensive discussions with Golden Gate and Infor, Lawson's board unanimously concluded that this transaction is in the best interests of the company and our stockholders."

The deal is expected to close in the third quarter

Distributors continue strong performance

2011-04-22T07:26:00.000-07:00

Applied Industrial, others cite solid gains driven by strength in the industrial sector

Citing continued strength in the manufacturing sector, some of the industry's largest publicly traded distributors reported solid sales and earnings this week.

Power transmission/motion control distributor Applied Industrial Technologies reported sales of $566 million for its fiscal third quarter, a 16% increase compared to the same period last year. Company chairman and CEO David Pugh said the results were fueled by a solid industrial economy.

"While we expect this economy to continue its recovery and to deliver a positive ongoing impact, such issues as oil prices and geo-political events dictate that we also maintain a focus on the underlying fundamentals of our business," Pugh said in a statement announcing the results this week.

Applied's results followed a similar strong performance from power transmission/motion control distributor Motion Industries last week. Motion's parent company, Genuine Parts Co., cited a 24% gain for Motion in the first quarter as sales rose to $999.7 million comapred to the same period a year ago. GPC also noted strong performance for EIS, Inc., its electrical group, which genreated a 39% sales increase.

"Both Motion Industries and EIS sell into the manufacturing sector of the economy, which began its recovery in 2010 and continues to perform well today," Thomas C. Gallagher, GPC's chairman, president and CEO said in a statement announcing the results.

Other distributors citing strong results this week include W.W. Grainger, which posted first-quarter sales of $1.9 billion, up 13% compared to the same period last year, and WESCO International, which reported a 25% sales gain in the first quarter, to $1.43 billion.

Minarik acquires Automation Technology

2011-04-20T06:59:00.000-07:00

Kaman Industrial Technologies subsidiary expands in the Intermountain and Pacific Northwest regions

Kaman Industrial Technologies subsidiary Minarik Corp. has acquired Automation Technology, Inc., with locations in Salt Lake City, Utah, and Boise, Idaho. The deal adds to Minarik’s locations in Portland, Seattle and Denver, expanding the distributor’s business in the Intermountain and Pacific Northwest regions.

Minarik is a value-added distributor of motion control products; Automation Technology, Inc. is a strong motion control player in its region.

“We are very pleased to be able to continue Minarik’s market expansion with the acquisition of Automation Technology. Their knowledge of the market and technical expertise, coupled with the resources of Minarik and Kaman will offer the Intermountain and Northwest markets superior products with unequalled application support and service,” Andy Reid, Kaman’s area vice president, Minarik, said in a statement announcing the acquisition.

Graco will buy ITW unit for $650 million in cash

2011-04-15T06:00:00.000-07:00

ITW unit had sales of $305 million in 2010

Graco, Inc. is buying the operations of the finishing business of Illinois Tool Works for $650 million in cash.

The ITW business makes and distributes equipment for industrial liquid finishing, powder coating and automotive refinishing worldwide.
The ITW business had revenue of $305 million in 2010.

The deal is expected to close sometime in June.

ITW's finishing business has about 40 percent of its sales coming from North America with significant operations in the United States, Switzerland, the United Kingdom, Japan, Brazil and Mexico. Its brands include Binks, Gema, Ransburg, DeVilbiss and BGK Finishing Systems.

Graco, which makes paint sprayers and fluid-handling equipment, said it plans to operate the businesses on a stand-alone basis and not integrate facilities, sales forces or distribution.

Graco's Chief Executive Officer Pat McHale said, "This acquisition is an excellent strategic fit with Graco's Industrial segment. It will advance all of our stated core growth strategies: new products and technology, geographic expansion, and new markets. We gain a leading position in industrial powder paint equipment – a growing global market where we have no offering today. In liquid finishing, the acquired product technologies are complementary to Graco's Industrial offering and also give us a leading position in automotive refinish where we have little presence. The acquired businesses generate two thirds of revenue outside North America, increasing our critical mass in important international and emerging markets. This transaction will bring several widely recognized premium brands to Graco, a strong distribution channel, an installed base and approximately 40 percent of revenue from parts and accessories."

Inventories, sales increased in February

2011-04-14T05:15:00.000-07:00

Report indicates orders will be rising

Business inventories rose 0.5 percent in February, marking the 14th consecutive monthly increase , according to a report from the U.S. Commerce Department. Sales increased for the eighth consecutive month, indicating that factory orders will be rising in the next few months.

Combined sales by manufacturers, wholesalers and retailers increased 0.2 percent during the month.

The inventories increase means that stockpiles rose to $1.46 trillion in February. It is 10.7 percent higher than the recent low of $1.32 trillion reached in September 2009.

Sales rose at the manufacturing and retail levels, but declined 0.8 percent at the wholesale level.

Fastenal sales climb 23% in 1Q

2011-04-12T05:46:00.000-07:00

Fastenal expects to open 150-200 stores this year

Fastenal, the giant MRO distributor headquartered in Minnesota, reported a 23 percent sales increase for the first quarter ended March 31, continuing its strong growth during 2010.

The company said several additional factors positively impacted its sales growth in the first quarter: the strengthening Canadian dollar (when compared to the United States dollar) that added approximately 0.7 percentage points to its daily sales growth in both 2011 and 2010 and its Holo-Krome business, which was acquired in December 200 that added approximately 0.5 percentage points to Fastenal’s daily sales growth in 2009, as there were no comparable sales in 2009.

In July 2010, Fastenal indicated its intention to open 80 to 95 new stores during the second half of 2010 (or an annualized rate of 6.8% to 8.0%). During the second half of 2010 the company opened 82 stores. In 2011, Fastenal intends to open 150 to 200 new stores, or an annualized rate of 6.0% to 8.0%. In the first quarter of 2011, Fastenal opened 37 new stores.

Schneider may be interested in Tyco

2011-04-11T05:14:00.000-07:00

Deal would allow Schneider to expand beyond electric-grid management

Paris-based Schneider Electric SA is looking at possibly acquiring Tyco International, Bloomberg News is reporting. Bloomberg said Tyco would help Schneider expand beyond electric-grid management by adding ADT, the biggest securities firm owned by Tyco, as well as fire-prevention equipment and services.

Tramec LLC acquires Hill Fastener Corp.

2011-04-07T09:50:00.000-07:00

Company will be named Tramec Hill Fastener, LLC

Fastener manufacturer Tramec LLC, has acquired the Hill Fastener Corporation located in Rock Falls, Illinois, This acquisition positions Hill Fastener as an integral part of the Tramec LLC fastener business, Tramec said. The acquisition will solidify the Tramec's presence in the industrial fastener market and creates instant synergies for both Tramec and Hill Fastener businesses, according to company officials.

Gary Sullo, president of Tramec LLC said, "The value proposition for both companies' customers will be immediately enhanced. The strategic acquisition of Hill Fastener adds manufacturing expertise to Tramec and represents a unique transaction where the sum of these two companies exceeds the individual components. We are enthusiastic about this acquisition, which is named Tramec Hill Fastener, LLC."

In a press release, Robert Hill, owner of Hill Fastener added, "I have had nearly 40 years of experience working here and it has always been my business strategy that, at the right time, Hill Fastener would be turned over to a company like Tramec LLC. As promised, our employees will be retained and the business will remain in the community where my father started it in 1957. I am very gratified by what has occurred for Hill Fastener and its employees."

The Tramec LLC product portfolio services the heavy-duty tractor and trailer OEM and aftermarket businesses, as well as the industrial market.

Tramec LLC is a business within the MacLean Investment Partners (MIP) portfolio owned by the MacLean family. This acquisition fits nicely with the long-range investment strategy to diversify manufacturing capabilities and customer base.

Regal Beloit acquires Virginia firm

2011-04-06T06:09:00.000-07:00

This is Regal Beloit's the third acquisition in past four months

Regal Beloit Corporation (NYSE: RBC) today announced that it has acquired Ramu, Inc., a motor and control technology company headquartered in Blacksburg, Virginia, backed by the venture capital firm Khosla Ventures.

Ramu, Inc. is a startup company founded by Krishnan Ramu with a research and development team dedicated to the development of switched reluctance motor
technology.

Switched reluctance technology is a unique motor design that is suitable
for applications requiring improved operating efficiencies, high operating speeds or high ambient temperature conditions. An additional strategic feature of switched reluctanceis that it does not utilize permanent magnet materials to create the operating torque ofthe motor.

Ramu, Inc.’s current management and technical leadership will continue to lead the
research and development efforts at Ramu, Inc., which will remain headquartered in
Blacksburg, Virginia. This team will be focused on expanding Ramu, Inc.’s current
portfolio of multiple patents and patent applications as well as integrating this
technology into Regal Beloit’s broad motor portfolio for commercialization across
multiple Regal Beloit brands.

“We see potential differentiated value for our customers if we are able to successfully integrate this technology into our energy efficiency motor portfolio,” said Henry Knueppel, chairman and chief executive officer of Beloit-Il. based Regal Beloit.

Regal Beloit Corporation is a manufacturer of mechanical and electrical motion control and power generation products serving markets throughout the world. RegalBeloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and servicefacilities throughout the United States, Canada, Mexico, Europe and Asia. RegalBeloit’s common stock is a component of the S&P Mid Cap 400 Index and the Russell2000 Index.

This is the third acquisition announced by Regal-Beloit in the past few months.

MSC sales soar 22.2% in Q2

2011-04-06T05:57:00.000-07:00

Rutland Tool acquisition adds $6.6 million in sales

MSC Industrial Direct, one of the largest direct marketers and premier distributors of Metalworking and Maintenance, Repair and Operations ("MRO") supplies to industrial customers throughout the United States, today reported that net sales for its second quarter rose 22.2% to $483.4 million, compared with $395.5 million in the prior year period.

Operating income increased 61.6% in the fiscal 2011 second quarter to $80.6 million, or 16.7% of net sales, from $49.9 million, or 12.6% of net sales, in the second quarter of fiscal 2010. For the second quarter of fiscal 2011, the Company reported net income of $49.7 million, an increase of 62.1% over net income of $30.6 million in the second quarter of fiscal 2010.

During the quarter, the Company completed the integration of its previously announced acquisition of Rutland Tool & Supply Co.. The company's results for the quarter included $6.6 million in sales from Rutland. Excluding acquisition and integration costs, Rutland broke even for the period. Pre-tax acquisition and integration costs incurred by the Company during the quarter were $1.65 million, resulting in a dilution of $0.016 per share, which was better than prior expectations.

Net sales for the first half of fiscal 2011 were $956.2 million, compared with net sales of $780.3 million in the first half of fiscal 2010.

David Sandler, President and Chief Executive Officer said, "I'm absolutely delighted with our performance and the strong financial results that our team delivered, driven by excellent execution, stronger demand across our customers than originally anticipated and continued gains in market share. We continue to execute against our strategic plan, delivering the growth in sales, earnings, and operating margin percentage that we were confident would result from our investments and model in a recovering market."

Erik Gershwind, Executive Vice President and Chief Operating Officer, stated, "We achieved strong results in the quarter led by significant growth within our core customer base. Our strong gross margin of 46.8% is primarily a function of improved rebates, excellent realization of the pricing adjustment we made around the holidays, and the growth in our core business. During the quarter, we also successfully completed the Rutland integration ahead of schedule, and that business delivered better results than we originally anticipated."

Mr. Sandler concluded, "Our results demonstrate the inherent leverage and power of our business model. We have seen significant benefits from our strategic growth programs, and we will continue to invest in these initiatives going forward. We are very encouraged by our progress, the performance of our investments, and recent strong economic trends, all of which bode well for the future."

For the fiscal 2011 third quarter, the Company expects net sales to be between $524 million and $536 million and expects diluted earnings per share for the third quarter of fiscal 2011 to be between $0.90 and $0.94.

ProBuild buys Harbert Lumber

2011-04-05T06:24:00.000-07:00

ProBuild continues its expansion

ProBuild, one of the largest construction supply distributors in the country,, has acquired the assets of Harbert Lumber, a Grand Junction, Colo.-based LBM operation, according to ProSales magazine.

ProBuild, headquartered in Denver, currently operates a business office and lumberyard in Grand Junction.

ProBuild currently operates 10 locations around Colorado.

"The addition of Harbert Lumber will enable ProBuild to service the growing needs of our customers in Colorado, particularly in the mountain towns where we have not had a robust presence until now," said Bill Myrick, president and CEO of ProBuild. "Within each market, ProBuild will combine local market expertise with the strength and scale of a national industry leader to continue delivering on the needs of our customers and partners."
Harbert Lumber has four facilities within Colorado: Grand Junction, Aspen, Steamboat Springs, and Glenwood Springs, the magazine said,

Zep sales increase 15% in Q2

2011-04-05T05:43:00.000-07:00

Industrial marets helped drive sales

Zep, Inc. a producer of cleaning and maintenance solutions,reported today that revenue for the second quarter of fiscal 2011 increased approximately 15% to $146.8 million, compared with $127.4 million in the same period of the prior year. Earnings before interest, income tax, depreciation, and amortization expenses and excluding restructuring, special items, and acquisition-related expenses (adjusted EBITDA) totaled $9.9 million, an increase of $4.3 million or 76% from the second quarter of fiscal 2010.

John K. Morgan, Chairman, President and Chief Executive Officer, said in a press release: "We are encouraged by the quarter's top-line results as we begin to see improving trends throughout our business. The business delivered significant top- and bottom-line expansion due to continued strong performance from our acquired platforms as well as growth in our legacy operations. Revenue from a number of the end markets we serve - specifically industrial, food and transportation - showed noteworthy improvement when compared to the year-earlier period. We are particularly pleased to be seeing a return to organic growth as a number of key initiatives are beginning to bear fruit. Adjusted EPS improvement of more than 60% illustrates the dedication of our associates' to focus on top-line growth initiatives while controlling cost during a prolonged economic recovery."

Mr. Morgan continued, "We made significant progress preparing our operations to further integrate the Waterbury business. We completed, four months ahead of schedule, a new, three-year collective bargaining agreement for the Atlanta manufacturing and distribution locations. This milestone and other operational improvements prepare the business for anticipated increased demand and clear the way for the final steps of integrating the Waterbury production into our existing facilities."

Apax Partners acquires Activant and Epicor Solutions

2011-04-04T17:49:00.000-07:00

The combined company will have 30,000 customers; $825 million in revenue

Activant Solutions Inc., a provider of ERP and point-of-sale software serving mid-market retailers and distributors, today announced that it has entered into a definitive agreement to be acquired by Apax Partners, a private equity firm with a history of technology investment. Activant is currently owned by investment funds affiliated with Hellman & Friedman LLC, Thoma Bravo, LLC and JMI Equity, and by management.

Apax also announced today that it is has entered into a definitive agreement under which funds advised by Apax will acquire Epicor Software Corporation (NASDAQ: EPIC), a provider of enterprise business software solutions for the mid-market and the divisions of global 1000 companies. Apax intends to combine Activant with Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors. Following completion of the merger, the combined company will be called Epicor Software Corporation.

"This transaction is extremely positive for Activant’s customers, employees and investors alike," said Pervez Qureshi, Activant president and CEO. “Our market leadership and expertise in distribution perfectly complements Epicor’s expertise in the manufacturing and services sectors. Together, Activant and Epicor’s retail business solutions can now cover the full spectrum of retailing − from small hardlines retailers, to national specialty softgoods and apparel chains, to global general merchandise department stores. Additionally, with Epicor’s worldwide infrastructure, we will have the opportunity to service and support Activant products internationally, which is very important as our customers compete in an increasingly global business environment.”

“With Apax, we are partnering with one of the premier investment firms in the world and one that is very much focused on growth and delivering value to the customers of its portfolio companies,” continued Qureshi. “The combined company will have over 30,000 customers, $825 million in annual revenues, and the most visionary business application software and vertical industry expertise in the market today. Apax is committed to growing the businesses in which they invest and has an excellent track record of working as a strategic partner with management to build high-growth companies.”

Under the terms of the agreement, all of Activant’s outstanding shares and stock options will be acquired for cash. Upon completion of the transaction all of
Activant’s outstanding 9-1/2% Senior Subordinated Notes will be redeemed and Activant’s senior secured indebtedness will be repaid. Apax has received debt commitment letters from Bank of America, N.A. and Royal Bank of Canada to provide the debt necessary to close the acquisitions. The acquisition of Activant is conditioned upon the concurrent closing of Apax’s acquisition of Epicor, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Activant expects that the acquisitions will close by the end of the second calendar quarter of this year.

"We are extremely excited to be bringing together two of the premier enterprise software companies to create a global market leader,” said Jason Wright, a partner at Apax Partners. “Activant and Epicor are both true innovators and extremely well positioned in the enterprise applications software space. Both Epicor and Activant customers will benefit from the combined entity’s increased scale, solutions portfolio and expanded service offerings. Epicor will gain access to significant additional domain expertise, particularly in hardlines retail, automotive and wholesale distribution, while Activant will benefit from an accelerated roadmap to international operations and additional supply chain and manufacturing functionality.”

“In addition to the immediate product and service portfolio enhancements,” Wright continued, “both companies’ customers will further benefit from the strong financial backing of Apax Partners and our commitment to building the new Epicor into the global leader for enterprise business applications in manufacturing, distribution, retail and services. We look forward to partnering with the management team and to providing the resources and support that can accelerate the growth and expansion of the business and the value it creates globally.”

ITW, others respond to Japan disasters

2011-03-30T08:13:00.000-07:00

Supply chain companies support humanitarian efforts, keep tabs on situation in Japan following earthquake and tsunami

Uncertainty still looms about the long-term effects of Japan’s recent natural disasters and ensuing nuclear crisis on the global supply chain. Product shortages, higher prices, and logistics problems threaten some industries, such as electronic component manufacturing and distribution, as others wait to see if there will be a trickle-down effect from production slow-downs in industries such as automotive and technology. In the meantime, many manufacturers and distributors remain focused on the humanitarian efforts needed to help Japan recover.

Diversified manufacturer ITW recently donated $250,000 to the Red Cross Japan Earthquake and Pacific Tsunami Fund and said it will provide a 3 to 1 Matching Gift Program for employee donations.

In a similar move, electronics distributor Arrow Electronics, recently pledged to match its employees’ first $100,000 in donations to designated crisis-recovery charities at work in Japan.

Also in the electronics distribution space, British giant Premier Farnell was the first to launch an informational micro-site devoted to the Japan tragedies on its element14 online community. The site includes updates from electronic component manufacturers located in Japan, as well as those that source products from Japan, along with news, humanitarian support information, and discussion forums.

Distributors of electronic components are watching the situation carefully, since Japan produces a large portion of the world’s semiconductors and related items. Roughly 40% of the world’s NAND flash memory and 15% of its DRAM are produced in Japan, for example.

Oracle may bid for Lawson Software

2011-03-29T05:09:00.000-07:00

Report says other bidders may also emerge

A news report by www.bloomberg.com today said that the Oracle Corp. may make a bid for Lawson Software, outbidding Infor and Golden Gate Capital’s offer of $1.8 billion.

Lawson Software, which counts billionaire investor Carl Icahn as one of its biggest shareholders, has risen 4.4 percent above the offer of $11.25 a share from Infor and Golden Gate Capital disclosed March 11, according to data compiled by Bloomberg.

Oracle, the second-biggest seller of business applications software, may buy Lawson, whose clients include Safeway Inc. and Volvo AB, Soleil Securities Corp.

Oracle stands to profit from Lawson Software’s medical records and supply-chain management businesses, which analysts estimate will help push the St. Paul, Minnesota-based company’s earnings to a record this year, Bloomberg said. A bidding contest would also increase Icahn’s windfall from his 10.9 percent stake in Lawson Software, which currently represents a 51 percent gain, data compiled by Bloomberg show.

H.B. Fuller sales rise 9.7% in Q1

2011-03-25T05:33:00.000-07:00

Gross profit margins affected by increased raw material costs

H.B. Fuller, a provider of adhesives, sealants, paints and other specialty chemical products, today reported Q1 revenue of 339.5 million, up 9.7 percent versus the first quarter of 2010.

Net income for the first quarter of 2011 was $14.4 million, or $0.29 per diluted share, versus $19.0 million, or $0.38 per diluted share, in last year's first quarter.

Higher average selling prices, higher volume and acquisitions positively impacted net revenue growth by 6.8, 2.2 and 1.7 percentage points, respectively, the company said. Foreign currency translation reduced net revenue growth by 1.0 percentage point. Organic revenue grew by 9.0 percent year-over-year. On a sequential basis, net revenue dropped approximately 6 percent relative to the fourth quarter of 2010, in-line with typical seasonal patterns.

Gross profit margin was down approximately 300 basis points versus the first quarter of 2010, primarily due to the cumulative effect of escalating raw material costs over the past year. Gross profit margin improved by 20 basis points versus the previous quarter as a combination of product reformulation and pricing actions offset ongoing raw material cost increases.

"We are pleased with the results of the first quarter," said Jim Owens, H. B. Fuller president and chief executive officer. "We continued our growth momentum with organic revenue up 9 percent from last year. While raw material costs continued to rise in the quarter, our gross margin improved sequentially due to a combination of pricing actions, reformulation and product substitution that were executed efficiently by the entire organization. We have bumped up our full-year revenue guidance to between 10 percent and 12 percent above last year primarily to reflect additional price increases required to recover material costs. We met our expectations for profitability in the first quarter and, as a result, we are reaffirming the full-year earnings per share guidance that we provided at the beginning of the fiscal year."

Durable goods orders drop 0.9 percent

2011-03-24T06:16:00.000-07:00

Machinery orders fall 4.2 percent

Lower orders for machinery and defense related products helped lead to a 0.9 percent drop in durable goods in February, the biggest decrease in four months, the U.S. Commerce Department said today.

Machinery orders fell 4.2% to $26.6 billion. Orders for major defense items dropped 24.8% to $8.3 billion.

January durable goods orders were revised up to a 3.6% increase. The government originally reported that total orders rose 3.2% in January.

Inventories of durable goods climbed 0.9% last month, the 14th consecutive increase.

Housing starts plunged in February

2011-03-16T05:54:00.000-07:00

Starts drop off sharply from January numbers

Construction of new houses and apartments dropped 22.5 percent in February to 479,000annualized units, the Commerce Department reported today. The decline from January was the biggest one-month drop in starts since March 1984.

Starts are at their lowest level since the record low of 477,000 recorded in April 2009.

The report comes after starts increased 18.4% in January, primarily due to multi-family starts. Starts of new single-family homes fell by 11.8% to 375,000 in February, while starts of large apartment units fell 46.1% to 104,000. Building permits fell 8.2% to a seasonally adjusted annual rate of 517,000. This is the lowest level of permits on record.

Business executives optimistic about economy

2011-03-14T06:36:00.000-07:00

Two-thirds of respondents expect economy to improve in next six months

U.S. business leaders are the most optimistic they have been since before the recession, according to Grant Thornton LLP’s most recent Business Optimism Index, a quarterly survey of U.S. business leaders.

Nearly two-thirds (64%) believe the U.S. economy will improve in the next six months, compared with 47% in November. Half of the business leaders (49%) report that their company plans to increase staff in the next six months (up from 43%), while only 10% plan to decrease staff (down from 15%) The Index itself is up 6.7 points to 69.7, the highest it has been since 2004.

Nearly nine in 10 of the business leaders (87%) are also optimistic about their own businesses, with only 13% reporting that they are pessimistic about their companies’ growth over the next six months.

Eaton acquires Internormen Technology Group

2011-03-14T06:12:00.000-07:00

Deal will strengthen Eaton's global business

Diversified industrial manufacturer Eaton Corporation today announced it has agreed to acquire Internormen Technology Group, a company specializing in in hydraulic filtration and instrumentation products. The deal is subject to customary closing conditions and terms were not disclosed.

“The sale of our family business is a positive step towards further global growth,” said Helmut Franger, founder of Internormen Technology. “Eaton is the perfect partner for us to jointly open new markets and develop new products and solutions“The sale of our family business is a positive step towards further global growth.”

“Internormen Technology has been a proven leader in advanced filtration technologies for almost 40 years,” said William R. VanArsdale, president of Eaton’s Hydraulics Group, which includes the hydraulic, filtration and golf grip businesses. “This acquisition will significantly expand Eaton’s filtration product portfolio with technically advanced products and systems for mobile, industrial hydraulic and process applications. Internormen has a leadership position in fast growing markets such as wind power and a well-established presence in emerging economies such as Brazil, India and China. Its global footprint strengthens our regional presence in the Americas, Europe and Asia Pacific.”

The company, which is based in Altlussheim, Germany, has sales and distribution subsidiaries in India, China, Brazil and the United States. Internormen employs approximately 360 people and had 2010 sales of more than $55 million.

Internormen Technology has been owned by the Franger family since its foundation in 1972. After completion of the sale of the company, the sons of the founder of the company, Stefan and Bernhard Franger, who held leadership positions at Internormen, will assume similar management responsibilities at Eaton.

“The sale of our family business is a positive step towards further global growth,” said Helmut Franger, founder of Internormen Technology. “Eaton is the perfect partner for us to jointly open new markets and develop new products and solutions.”

Eaton Corporation is a diversified power management company with 2010 sales of $13.7 billion. Celebrating its 100th anniversary in 2011, Eaton is a global technology leader in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 70,000 employees and sells products to customers in more than 150 countries.

Lawson Software receives buyout offer

2011-03-14T05:27:00.000-07:00

Software provider Infor and Golden Gate Capital reportedly offering #1.8 billion in unsolicited offer

Lawson Software has received an unsolicited $1.8 billion proposal to be bought by Infor and Golden Gate Capital, the Minneapols-St. Paul Business Journal is reporting.

The offer was for $11.25 per share in cash, which translates into about $1.8 billion.

St. Paul-based Lawson said it's discussing the unsolicited proposal with the potential buyers, the news site said.

If a deal is completed, Lawson would be the second software company acquired by Infor in recent years. Infor bought Minneapolis-based SoftBrands in 2009.

Berkshire Hathaway buys Lubrizol

2011-03-14T04:52:00.000-07:00

The transaction for the specialty chemical company is valued at $9.7 billion

Berkshire Hathaway Inc. and The Lubrizol Corporation today announced a definitive agreement for Berkshire Hathaway to acquire 100% of outstanding Lubrizol shares for $135 per share in an all-cash transaction. The transaction, which was unanimously approved by the board of directors of each company, is valued at approximately $9.7 billion, including approximately $0.7 billion in net debt, making it one of the largest acquisitions in Berkshire Hathaway history.

This price represents a 28 percent premium over Lubrizol's closing price on Friday, March 11, 2011, and is also 18 percent higher than Lubrizol's all-time high share closing price.

"Lubrizol is exactly the sort of company with which we love to partner - the global leader in several market applications run by a talented CEO, James Hambrick," said Warren Buffett, Berkshire Hathaway chief executive officer. "Our only instruction to James - just keep doing for us what you have done so successfully for your shareholders."

James Hambrick, Lubrizol chairman, president and chief executive officer, said, "This transaction provides compelling value to our shareholders and is a clear endorsement of the growth and diversification success Lubrizol has achieved. We are very excited to have the opportunity to become part of the Berkshire Hathaway family. We believe its philosophy of supporting long-term global investments in technology, assets and employees will enhance execution of our growth strategies. Such a long-term commitment is more important than ever in today's global economy to deliver true market-leading products and services for our customers."

The transaction is subject to the approval of Lubrizol's shareholders and the satisfaction of customary closing conditions, including the expiration of waiting periods and the receipt of approvals under the Hart-Scott-Rodino Antitrust Improvements Act and applicable non-U.S. merger control regulations. Berkshire Hathaway and Lubrizol expect the transaction to be completed during the third quarter of 2011.

After the close of the transaction, Lubrizol will operate as a subsidiary of Berkshire Hathaway and will continue to provide innovative technology, outstanding service and superior global supply chain support to its customers. Lubrizol will remain located at its Wickliffe, Ohio, headquarters and will continue to be led by its current management team.

Citi and Evercore Partners are acting as financial advisors to Lubrizol, and Lubrizol's legal counsel is Jones Day. Berkshire Hathaway's transaction counsel is Munger, Tolles & Olson LLP.

The Lubrizol Corporation is a specialty chemical company that produces and supplies technologies to customers in the global transportation, industrial and consumer markets. These technologies include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals; specialty materials, including plastics technology; and performance coatings in the form of specialty resins and additives.

With headquarters in Wickliffe, Ohio, The Lubrizol Corporation owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,900 employees worldwide. Revenues for 2010 were $5.4 billion.

Four injured in explosion at Bostik plant

2011-03-14T04:47:00.000-07:00

Bostik is a well-known manufacturer of adhesives and sealants for industrial markets

An explosion and four-alarm blaze ripped through the Bostik manufacturing plant in Middleton, Mass. Sunday, rocking homes for several miles and sending four workers to the hospital. Bostik is an adhesives and sealant manufacturer and sells its products into construction, industrial and a number of other markets.

None of the four employees were believed to be seriously injured. State environmental said they were concerned about chemical contamination to the nearby Ipswich River.

Firefighters from across the area, along with State Police and emergency management officials, responded shortly after 7:30 p.m. to reports of an explosion at or near 211 Boston St.

Two Bostik buildings were reportedly heavily damaged.

The cause of the explosion at the Middleton facility was not immediately apparent, authorities said.

Engel named chairman of WESCO International

2011-03-11T06:31:00.000-08:00

Engel will replace Roy W. Haley

WESCO International, one of the largest industrial and electrical distributors in the country, has named President and CEO John J. Engel as chairman of the $5.1 billion company.

Engel’s new role is effective May 25, when he will replace current chairman Roy W. Haley.

The move is part of a succession plan the company announced in 2009 when Engel was selected to replace Haley as CEO. Haley had agreed to continue to serve as chairman until his term ends in May.

“I have had the distinct privilege of being associated with WESCO and I could not be more proud of our Company and the quality of our organization,” Haley said in a written statement. “John Engel joined WESCO almost seven years ago, and he has done an outstanding job positioning WESCO for continued growth and profitability over the long term. I am confident that the management team, under John’s leadership, will be highly successful.”

Graybar’s sales up 5% in 2010

2011-03-10T05:35:00.000-08:00

Net income rises 13% on sales of $4.6 billion

Electrical, communications and data networking products distributor Graybar posted solid sales and earnings results for the fourth quarter and full-year 2010 this week.

Fourth-quarter sales rose nearly 15% compared to the same period last year, while full-year sales rose more than 5% to $4.6 billion. Full-year earnings were up 13% to $42.3 million, the company said.

“Like many businesses, we were unsure what to expect from the economy at the beginning of 2010. After a slow start, momentum began to build in our markets and we capitalized on this opportunity. I am very proud of how our employees focused on serving our customers to achieve growth,” said Robert A. Reynolds, Jr., Graybar’s chairman, president and chief executive officer.

Reynolds added, “Our performance in 2010 resulted from improving conditions and a consistent focus on our long-term view of our business. Our financial condition remains very stable, with low debt levels and higher earnings. The company is well positioned for anticipated growth in 2011 as we continue to work to our customers' advantage.”

Based in St. Louis, employee-owned Graybar has nearly 240 distribution facilities throughout North America.

Arrow/Samsung announce new global distribution agreement

2011-03-09T06:04:00.000-08:00

Arrow to provide distribution and design-in services

Arrow Electronics, Inc. (NYSE:ARW) today announced a global distribution agreement with Samsung Electro-Mechanics, a leading manufacturer of electronic components and technologies.

Arrow will provide distribution and design-in services for Samsung Electro-Mechanics worldwide, excluding Korea, for Samsung's broad product offering in the passives area of capacitors, resistors, inductors and crystals.

“Samsung is an innovator and a globally recognized leader in technology and electronics,” said Peter Kong, president of global components for Arrow Electronics. “Together with Arrow's strength in supply chain services, value-added capabilities, and global reach, this relationship will help expand our ability to serve our customers’ diverse needs around the world.”

“Samsung is engaging with Arrow Electronics in a global franchise agreement because of their market position with global customers, excellent sales and technical support and logistics expertise,” said Dr. CJ Choi, executive vice president/chief of business unit for Samsung Electro-Mechanics. “We are looking forward to reaching new markets with our technology into Arrow’s global customer base.”

Small business hiring increases slowly

2011-03-09T05:18:00.000-08:00

Hiring outlook remains solid; price cutting ending

February posted positive numbers in job growth, according to the National Federation of Independent Business, which reports a modest increase of .4 points in its latest Index of Small-Business Optimism, bringing the monthly reading to 94.5. Most notably, hiring and future plans to hire were solid and hopefully presage a string of steady job creation months this year. While historically weak, these relative gains signal good news for a sector still deeply encumbered by weak sales. Still, only a net 9 percent of small-business owners surveyed expect that business
conditions will improve over the next six months.

“This is not a reading that characterizes a strongly rebounding economy,” said NFIB chief economist Bill Dunkelberg. “But it is the third best reading since the fourth quarter of 2009 when the economy was expanding rapidly. So, it gives us cause for some real optimism. Apparently the future is looking brighter for a few more small-business owners, although much will depend on what Congress does this year.”

The other significant change in February’s reading is the end of a long period of price cutting. This signals a return in the months ahead to increases in average prices as supply adjustments restore pricing power. More small businesses reported that their inventories were “too low” as opposed to “too high,” indicating, also, an end to the inventory adjustment cycle which began when consumers started saving and cut consumption spending by nearly half a trillion dollars. Going forward, there will continue to be upward pressure on prices as demand strengthens. As growth improves, price hikes will stick as owners try to restore profitability.

Some other highlights of February’s Optimism Index include:

-Access to credit still appears to be a low priority for small businesses, with only 4 percent reporting financing as their top business problem. Overall, 92 percent reported that all their credit needs were met or that they were not interested in borrowing. Eight percent reported that not all of their credit needs were satisfied, and 51 percent said they did not want a loan (12 percent did not answer the question and might be presumed to be uninterested in borrowing as well).

-Reports of positive earnings trends improved, albeit only one point in February, registering a net negative 27 percent. This slight increase shows that far more owners report that earnings are deteriorating quarter on quarter, instead of rising.

-Although consumer spending appears to have risen at a robust 4 percent rate in the fourth quarter, small businesses did not appear to have benefited much from the spending gains. The net percent of all owners (seasonally adjusted) reporting higher nominal sales over the past three months was unchanged at a net negative 11 percent. Unadjusted, 21 percent of all owners reported higher sales (last three months compared to prior three months, unchanged) while 37 percent reported lower sales (up one point).

-Overall, sales trends are not yet supportive of a widespread recovery in the small-business sector. Usually a leader in a recovery, housing starts have remained flat, and can be held accountable for much of the missing new jobs.

The NFIB report is based on the responses of 774 randomly sampled small businesses in NFIB’s membership, surveyed throughout the month of February.

84 Lumber closes 10 more locations

2011-03-08T05:11:00.000-08:00

Most locations are in the Southeast

84 Lumber, one of the country’s largest construction supply companies, has closed 10 more facilities today, seven of them in the Southeast, according to Pro Sales magazine.

The company shut these locations:
 Brooksville, Fla.
 Deland, Fla.
 Fort Pierce, Fla.
 Winder, Ga.
 South Haven, Miss.
 Springfield, Mo.
 Farmingdale, N.J.
 Tulsa, Okla.
 Anderson, S.C.
 Karns, Tenn.

"These 10 stores have consistently underperformed for quite some time, and while we do see some positive movement in the housing andconstruction markets overall on a national basis, these markets continue to either lag severely with no sign of a significant rebound that fits ourbusiness model, or we have multiple stores in the region and we can handle the existing store business from other locations," Jeff Nobers, 84's vice president of marketing and public relations, wrote iin an e-mail to ProSales. The company plans to sell the properties.

The closure reports come about two weeks after 84 Lumber closed branches in Winston-Salem, N.C., and Richmond, Va. The company now has 265 locations.

For full story click on to www.prosalesmagazine.com

Manufacturing, construction added jobs in February

2011-03-04T06:11:00.000-08:00

Unemployment rate finally drops below 9 percent

The manufacturing and construction sectors each added 33,000 jobs in February, the Labor Department reported today as non-farm payrolls rose by 192,000. This is especially good news for the construction sector, which had lost 22,000 jobs in January. Many economists had said that loss was due to weather conditions.

Almost all of the manufacturing gain occurred in the durable goods industries, including machinery (+9,000) and fabricated metal products (+7,000).

Manufacturing has added 195,000 jobs since its most recent trough in December 2009; durable goods manufacturing added 233,000 jobs during this period.

The U.S. unemployment fell below 9% for the first time in nearly two years.
The January number was revised to show an increase of 63,000 jobs from a previous estimate of 36,000.

The unemployment rate, which is obtained from a separate household survey, fell to 8.9% last month.

Eaton Corp. to move Milwaukee division

2011-03-04T05:07:00.000-08:00

Construction expected to begin this summer

Eaton Corp. will move its division headquarters from Milwaukee's north side to Wauwatosa, the Milwaukee Journal Bulletin reports. Eaton has selected the Milwaukee County Research Park, at Highway 45 and Watertown Plank Road, for its electrical sector Milwaukee operations and technical center, now at 4201 N. 27th St.

Construction is to begin this summer on the 90,000-square-foot building, Mayor Jill Didier announced Wednesday. The building is to be completed by mid-2012.

The move will shift 145 employees to the research park, and "there is potential for future employment growth," Didier said.

Eaton executives for years had considered a move from the outdated building, which was built in 1965. Eaton spokesman Todd Parks said the new building will allow the company to operate more efficiently.

"The choice of this site reaffirms Eaton's commitment to the state of Wisconsin and the region, and provides us with a location capable of supporting our continued growth," said Matt Lorenz, Eaton's industrial control division vice president and general manager, in a statement.

For full story: http://www.jsonline.com

Airgas board rejects Air Products offer

2010-12-22T05:51:00.000-08:00

Board pegs the value of Airgas at a price of at least $78 per share

The Board of Directors of Airgas said today it has unanimously rejected the revised unsolicited tender offer from Air Products & Chemicals, Inc. to acquire all outstanding common shares of Airgas at a price of $70.00 per share in cash. The Board unanimously recommends that Airgas stockholders to not tender their shares into Air Products' revised offer.

The board said that the $70 per share offer is "clearly inadequate" and that the value of Airgas is at least $78.00 per share.

Grainger sells Highsmith brand

2010-12-22T04:05:00.000-08:00

Broad-line distributor is also considering the sale of four other units under its Specialty Brands division

W.W. Grainger announced the sale of one of its specialty brands earlier this week. The broad-line distributor sold Highsmith, which provides products and solutions to libraries and schools, to DEMCO, Inc., a leading provider of supplies, equipment, furniture and technology for libraries and schools nationwide. Terms of the deal were not disclosed.

Grainger's Specialty Brands serve targeted customer segments with products and services specific to their industries.

The distributor also said it is considering the sale of four other specialty brands:

Professional Equipment (serving inspection and construction-related trade professionals)

Construction Book Express (serving general contractors, electricians, HVAC professionals, engineers and architects)

McFeely's (serving professional woodworkers)

Rand (serving material handling needs)

These four brands represent roughly 1% of Grainger's revenue.

Grainger said it will continue to invest in its remaining specialty brands, including Lab Safety Supply, Imperial, Gempler's, Ben Meadows and AW Direct.

ProBuild to close 20 facilities

2010-12-02T05:00:00.000-08:00

The construction supply company currently has 470 locations nationwide

ProBuild, one of America's biggest pro-oriented construction supply companies, announced today it is closing 20 of its roughly 470 locations nationwide "in an effort to align our business with current market needs," according to www.Prosalesmagazineonline.com. ProBuild reported sales of $3.2 billion in sales last year, down 27% from 2008.

For the complete story click on to www.prosalesmagazine.com

Arnott selected new PTDA executive vice president

2010-12-01T05:31:00.000-08:00

Arnott will succeed longtime executive Mary Sue Lyon

The Power Transmission Distributors Association (PTDA) Board of Directors unanimously selected Ann Arnott, currently PTDA’s vice president of programs and services, to succeed Mary Sue Lyon as the next executive vice president of PTDA, effective January 1, 2011.

The selection of Arnott is a result of asearch which began in March 2009, after the Board of Directors received notification of Lyon’s intent to retire at the end of 2010.

After concluding the search process, PTDA’s leadership affirmed their support of Arnott. Keith Nowak, president of the PTDA Board of Directors in 2010 and president of MPT Drives, Inc. shared the following sentiment. “Even though Ann was a qualified candidate, the Board elected to do a full-blown executive search. We wanted to be sure to get the best possible person to lead PTDA going forward. We are now more confident than ever that we have the right person for the job. Ann’s background in finance and experience as well as knowledge of PTDA and its members helped her to excel above the other candidates.”

John Masek, vice president of Bearing Service Inc., chaired the executive search committee. According to Masek, “Ann handled her position as an internal candidate with grace, strength and a positive demeanor at all times. At the end of the process, she clearly was affirmed as the best individual to lead our association forward into the next decade. Her poise, enthusiasm, creativity and leadership qualities stood out and will serve her well as she expands her service to the membership of PTDA.”

Arnott joined PTDA in 2006 as director of programs and services and was promoted to her current role in 2008. Arnott is integral in managing the development and execution of PTDA’s strategic plan through the association’s volunteer committees, task forces and work groups. Additionally, she provides oversight for the association’s events, including the Industry Summit, Canadian Conference and Leadership Development Conference. Arnott also oversees the association’s marketing plan.

Prior to working with the association, Arnott spent 16 years with the Institute of Real Estate Management, where she developed a broad-based background in association management. Serving as financial editor, chapter relations manager, member and chapter services manager and finance manager, Arnott rose to the position of director of marketing and sales, where she crafted and implemented a long-term strategic marketing plan.

PTDA also benefits from Arnott’s financial background. Before beginning her career in association management, Arnott completed her MBA in Finance and worked at the investment counseling firm Scudder, Stevens and Clark.

Mary Sue Lyon has also reached an agreement with PTDA to remain as a consultant to the association for the first quarter of 2011. Lyon and Arnott have already initiated the transition of EVP responsibilities to ensure continuity and an orderly transition.

Actuant buys Mastervolt for $150 million

2010-12-01T05:04:00.000-08:00

Mastervolt is a designer, developer nd supplier of power electronics

Actuant Corporation has agreed to purchase Mastervolt, a Netherlands, Amsterdam- based designer, developer and global supplier of innovative, branded power electronics. The purchase is subject to customary regulatory approvals and closing conditions, and is expected to close within 30 days. Total consideration for the transaction is approximately €115 million ($150 million) which will be funded from the company’s cash and revolving credit facility. Mastervolt generated approximately €85 million ($110 million) in revenue in the past 12 months.

Mastervolt’s products provide the technology associated with the efficient conversion, control, storage and conditioning of power and are utilized in various end markets including solar photovoltaic (PV), marine and specialty vehicles.
In the solar market, Mastervolt is focused primarily on high-quality and high-yield inverters for sub-segments of the on-grid market in Europe. Inverters serve as the critical link in a solar PV system, connecting the solar panels to the electric grid, efficiently converting direct current (DC) into alternating current (AC). In the marine and specialty vehicle markets, Mastervolt provides integrated power systems which include battery chargers, inverters, generator sets, batteries, switchboards and electrical propulsion. Mastervolt provides “green” solutions to the marine market with its hybrid and electric propulsion, lithium-ion batteries and digital switching technologies.

Actuant Corporation is a diversified industrial company with operations in more than 30 countries. The Actuant businesses sell products in a broad array of niche markets including branded hydraulic and electrical tools and supplies; specialized products and services for energy markets and highly engineered position and motion control systems. The company was founded in 1910 and is headquartered in Butler, Wis.

ABB to acquire Baldor Electric

2010-11-30T05:11:00.000-08:00

Baldor, a manufacturer of motors and power transmission products, is headquartered in Ft. Smith, Arkansas

ABB , a power and automation technology group, and Baldor Electric Company a North American provider of industrial motor and related products, have agreed that ABB will acquire Baldor in an all-cash transaction valued at approximately $4.2 billion, including $1.1 billion of net debt.

Under the terms of the definitive agreement, which has been unanimously approved by both companies’ Boards of Directors, ABB will commence a tender offer to purchase all of Baldor’s outstanding shares for $63.50 per share in cash. The transaction represents a 41 percent premium to Baldor’s closing stock price on Nov. 29, 2010. The Board of Directors of Baldor will recommend that Baldor shareholders tender their shares in the tender offer. The deal is expected to close in the first quarter of 2011.

The transaction closes a gap in ABB’s automation portfolio in North America by adding Baldor’s strong NEMA motors product line and positions the company as a market leader for industrial motors, including high-efficiency motors. Baldor also adds a growing and profitable mechanical power transmission business to ABB’s portfolio.

The transaction will substantially improve ABB’s access to the industrial customer base in North America, opening opportunities for ABB’s wider portfolio including energy efficient drives and complementary motors. This move comes at a time when regulatory changes in the US and other parts of the world will accelerate demand for energy efficient industrial motion products. The acquisition will strengthen ABB’s position as a leading supplier of industrial motion solutions, and will also enable ABB to tap the huge potential in North America for rail and wind investments, both of which are expected to grow rapidly in coming years.

“Baldor is a great company with an extremely strong brand in the world’s largest industrial market,” said Joe Hogan, ABB’s CEO. “Baldor’s product range and regional scope are highly complementary to ours and give both companies significant opportunities to deliver greater value to our customers.”

John McFarland, Chairman of the Board and CEO of Baldor, commented: “Our Board of Directors believes this transaction is in the best interest of our shareholders, our employees and our customers. It demonstrates the value our employees have created and the strength of our brand and products in the global motors industry. We are excited about the opportunity to join ABB’s worldwide family as we have always respected ABB. We are very pleased that ABB will locate its motor and generator business headquarters for North America in Fort Smith and we are confident that the combined global platform will be well positioned to capitalize on meaningful growth opportunities in the future.” John McFarland will stay with the combined business to support a successful integration.

“ABB is well known in the marketplace for premium, innovative and advanced products. We have respected them as both a market participant and a value-added supplier for many years,” said Ron Tucker, Baldor’s current President and COO, and CEO designate. Ron Tucker will run Baldor including the mechanical power transmission products business and ABB’s motor and generator business in North America after the transaction is completed.

Baldor is based in Fort Smith, Arkansas, and is a supplier in the large North American industrial motors industry. In addition, Baldor offers a broad range of mechanical power transmission products such as mounted bearings, enclosed gearing and couplings – used primarily in process industries – as well as drives and generators. The Baldor drives business will be combined with the larger ABB drives business to achieve even further penetration of this product line.

Baldor employs approximately 7,000 people and reported an operating profit of $184 million on revenue of $1.29 billion in first nine months of 2010. This represents an increase of 30% in operating profit and 11% in revenue over the comparable period in 2009.

The US market for high-efficiency motors is expected to grow 10 to15 percent in 2011on the back of new regulations, effective in December this year. Similar regulations in Canada, Mexico and in the European Union are expected in 2011.

“ABB and Baldor will be able to offer our North American and global customers an unparalleled range of high-efficiency industrial products and services to help them meet their new demands,” said Ulrich Spiesshofer, Executive Committee member responsible for ABB’s Discrete Automation and Motion division, into which Baldor’s business will be integrated alongside the existing Motors and Generators business. We expect to achieve over $200 million in annual synergies by 2015, consisting of more than $100 million annual cost synergies and at least the same global revenue synergies. We estimate two-thirds of these synergies will be realized by 2013. We intend to build on Baldor’s excellent North American position to sell energy efficient drives, larger motors and generators. Together, we will accelerate the expansion of Baldor’s mechanical power transmission product portfolio into the global process automation market using ABB’s strong channels in this sector.”

“We are deeply impressed by the skill and passion of the Baldor team and their excellent customer relationships,” Spiesshofer said. “The strength of Baldor’s people and executive team, which will continue under the new ownership, will play a key role in our mutual success.”

Under the terms of the merger agreement, the transaction is structured as a cash tender offer to be followed as soon as possible by a merger. The tender offer is expected to commence in December and is subject to customary terms and conditions, including the tender of at least two-thirds (2/3) of Baldor's shares on a fully diluted basis, and regulatory clearance.

ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people.

Durable goods orders dropped in October

2010-11-24T06:42:00.000-08:00

Biggest monthly drop in nearly two years

Orders for U.S. durable, goods, products meant to last at least three years, unexpectedly dropped in October, according to the U.S. Commerce Department.

Demand for durable goods decreased 3.3 percent, the biggest drop since January 2009, after a revised 5 percent jump in September.

Meanwhile, jobless claims declined by 34,000 to 407,000 in the week ended Nov. 20, according to the Labor Department.

NABE expects moderate GDP growth in 2011

2010-11-22T06:58:00.000-08:00

Labor market conditions to improve slightly

The National Assn. for Business Economics today forecast only a moderate increase in GDP growth in 2011. NABE’s outlook panel said it expects GDP to grow 2.6 percent, unchanged from its previous prediction made in October.

“NABE Outlook survey panelists made only modest revisions to their forecasts for the November report compared with their October projections for economic growth,” said NABE President Richard Wobbekind, associate dean of the Leeds School of Business at the University of Colorado. “Projections for real GDP growth remain sub-par through the first quarter of 2011, but accelerate gradually through the forecast period. For next year as a whole, GDP growth is expected to be moderate.

"Factors restraining growth going forward include ongoing balance-sheet restructuring by consumers and businesses, and a diminished contribution to GDP growth from inventory restocking and government stimulus. Confidence in the expansion’s durability is intact, but panelists remain concerned about high levels of federal debt, a continuing high level of unemployment, increased business regulation, and rising commodity prices.”

Here is a breakdown of what NABE expects:

The NABE Outlook panel made modest revisions to its economic growth predictions for 2010 and 2011. Real gross domestic product (GDP) is now expected to advance 2.7 percent (year-over-year) in 2010, a slight increase from the panel’s October prediction of 2.6 percent. Next year’s projected 2.6 percent GDP growth rate was unchanged from October’s prediction, and, as is typical in a recovery after a severe financial crisis, shows the lack of a more pronounced cyclical rebound. The projected growth rate for 2011 is slightly below the panel’s current estimate of the economy’s long-term growth trend of 2.7 percent. The survey respondents’ estimate of trend growth has declined by one-quarter-percentage point since 2007.

To a large extent, the latest NABE forecast reflects the view that the economy will struggle against financial headwinds. Forty percent of survey respondents—compared to 37 percent in October—characterize the expansion as “sub-par with severe wealth losses and onerous debt burdens inhibiting spending and lending.” In contrast, 28 percent of respondents feel that “the economy will overcome its headwinds, and behave more in line with a traditional business cycle expansion: real output will grow at a rate above potential, and households and businesses will boost discretionary spending.” The likelihood of either stagflation or the economy slipping back into recession is viewed as relatively low.

Consumer spending is expected to remain modest throughout the forecast horizon due to weak job gains, persistently high unemployment, and negligible growth in household net worth. This year’s holiday retail sales are still expected to be weak, rising only 2.5 percent from those of last year. Roughly half of the panelists expect the personal saving rate to fall over the forecast period, while the other half of the panel is divided as to whether it will rise further or stay at roughly the same rate.

Labor market conditions will improve slowly. Monthly payroll gains are forecast to average less than 150,000 until the latter half of 2011, at which time gains will improve at a range of roughly 150,000-170,000. Joblessness will remain high, with the unemployment rate persisting at over 9.5 percent or higher through the first quarter of 2011 before easing—but only slightly—to 9.2 percent by year-end 2011.

This will mark the weakest post-recession job recovery on record. Panelists estimate the current long-run or natural rate of unemployment at 5.8 percent, up by one-half-percentage point since 2007.

Grainger optimistic about Q4

2010-11-22T05:24:00.000-08:00

Sales expected to grow 8 to 10 percent

Grainger, the large broad line supplier of maintenance, repair and operating products serving government, businesses and institutions, last week told financial analysts that it expects a solid sales increase for the fourth quarter.

For the 2010 fourth quarter, the company is forecasting sales to increase 8% to 10%, and expects earnings per share for the quarter to be between $1.49 and $1.69, excluding unusual items.

•For the full year 2010, the company expects sales to increase 14% to 15%, and has narrowed its earnings per share forecast to be between $6.50 and $6.70, excluding unusual items. In October, the company had forecasted 2010 full year EPS of $6.40 to $6.70 on 14% to 15% sales growth.

•For the full year 2011, the company is forecasting sales to increase 5% to 9%, and expects earnings per share to be between $7.15 and $7.90.
The company also reviewed its long term operating margin objectives. Grainger expects to expand its operating margin by approximately 50 basis points per year in the context of mid to high single digit organic sales growth. The company established a new long term objective of increasing its operating margin to a range of 14% to 16%, up from the previous objective of 11% to 13%.

Hose distributors seek to expand technical knowledge

2010-11-17T18:46:00.001-08:00

Recent NAHAD “Road Show” provided networking, education opportunities on hose assembly fabrication

NAHAD-The Assn. for Hose & Accessories Distribution took its Hose Assembly Guidelines program on the road recently as part of an ongoing outreach program designed to spread the word about the importance of providing safe, reliable hose assemblies to customers in all lines of trade.

NAHAD’s Hose Assembly Guidelines are a set of comprehensive recommendations for hose assembly specification, design and fabrication; they are designed to maximize the life of a hose assembly and optimize hose assembly safety, quality and reliability. San Diego was the fourth in a series of “road shows” created to spread the word about the guidelines program. The meeting was held Sept. 29-30 at the San Diego Marriott Hotel & Marina.

The training and education aspects of the program attracted John Green, president of Green Rubber/Kennedy Ag of Salinas, Calif., a first-time attendee who said he was “curious to see what the program was all about.”

“Our biggest concern as a medium-sized company is training,” said Green, whose company specializes in selling hose and rubber products to California’s food industry. “[NAHAD] stresses the importance of having qualified people learning about and doing proper assembly of specialty hoses.

“We know the chemical compatibilities and proper couplings to install on the hoses and the working pressures and so on, but these are things you can take for granted that your people know. And the training out there is very limited. So this was a way for us to stay informed.”

The Hose Assembly Guidelines program includes a training and certification component, something Green said he is particularly interested in.

“Most people think a hose is a hose and they don’t take into consideration what goes through it and how much pressure is involved,” he added, pointing to the potential for injury and damage if a hose fails. “We all want more information and a better understanding of what our products are capable of doing and what they’re not capable of doing. You really have to be astute in taking the time to make sure you know what you’re talking about when you make recommendations to customers.”

Distributors who adhere to NAHAD’s Hose Assembly Guidelines agree to fabricate hose assemblies according to the association’s standards—for industrial, composite, hydraulic, corrugated metal and fluoropolymer hose, as well as ducting and custom-made hose—and also agree to train and test their employees on those standards. They can then become NAHAD Listed members, a marketing program that lets end users and others know that they adhere to the NAHAD guidelines.

Green says he plans to take part in the Guidelines program as a result of the meeting.

Mike Helfer, president of Specialty Hose Corp. in North Canton, Ohio, deemed the Road Show a success in large part because of first-time attendees like Green. Helfer is a NAHAD board member and also serves on the association’s standards committee.

“Although we do some [programming] geared toward the Guidelines at our annual convention, there are still many people who walk away from that meeting without a complete understanding of what [the Guidelines] are and how they can affect them and their business,” Helfer explained. “[The Road Shows provide] hands-on, live examples from people who are using the Guidelines on a daily basis, giving [newcomers] insight about what this program is that everyone is talking about and how they can use it at their company.”

Key topics at the San Diego Road Show included safety concerns, liability issues in cases of hose failure, and the importance of ongoing employee training, Helfer and Green said. Companies experienced in using the Guidelines—such as Helfer’s—shared their experiences as NAHAD Listed members, while newcomers asked questions and also shared their insights on key issues and trends shaping the industry.

Among the meeting’s key “take-aways” for Green was a simple piece of sales advice.

“We all have trained salesmen who go out and try to explain to the purchasing people or the engineering people or the safety people why they should spend a certain amount of money on a particular product,” Green said. “But in most cases, people are looking for price. At [the Road Show], one gentleman explained it this way: You find somebody who [cares]. And when you find that person, you explain that if you think this hose might be expensive, wait until you find out how expensive a lawsuit can be.”

For more information on NAHAD’s Hose Assembly Guidelines program, go to http://www.hoseguidelines.com/.

Purvis Industries acquires BMG

2010-11-16T07:34:00.000-08:00

Purvis will also be opening a new MT. Pleasant, TX store

CAPCORP, a division of Purvis Industries of Dallas, TX, has acquired Belt Maintenance Group of Texas (BMG) from BMG of Tampa, FL. The acquisition consists of the Mt. Pleasant, TX, and San Antonio, TX, locations.

BMG sells conveyor belting sales and service solutions including field service and installation to the Texas, Louisiana, Arkansas, Oklahoma and surrounding areas

“We believe the culture of quality service and field work with an emphasis on maintaining a safe and professional presence on the job demonstrated by BMG Texas is a great fit with the CAPCORP organization and its philosophy” said Allan Ross, vice president of sales and operations at CAPCORP.

Purvis Industries will also be opening a new Mt Pleasant, TX store to be co-located in a new 15,000-square-foot facility to be occupied by BGM and CAPCORP.

PT/motion control sales rose in September

2010-11-12T06:15:00.000-08:00

Sales of PT products are up 11.9 percent this year compared to 2009

Sales of power transmission/motion control (PT/MC) products by U.S. and Canadian manufacturers grew for the second consecutive month in September. U.S. sales were up 1.4 percent and Canadian manufacturers’ sales rose 10.4 percent according to September 2010 sales data released by the Power Transmission Distributors Association (PTDA) in its Market Outlook Report.

In the U.S., year-to-date sales are up 11.9 percent over the same period in 2009. In Canada, sales are 13.0 percent ahead of 2009.

Confidence in the market by U.S. manufacturers rose from 4.8 in August to 4.9 on a scale of 1 (very pessimistic) to 10 (outstanding). Canadian manufacturers’ confidence decreased slightly from 5.2 in August to 5.1.

The Market Outlook Report is published monthly by the Power Transmission Distributors Association. The full report includes U.S. and Canadian manufacturer data for sales and order trends for mounted bearings, unmounted bearings, standard industrial motors (U.S. only), variable speed drives, positioning systems/linear motion products, gear products, clutches and brakes, shaft couplings and mechanical drive systems and other PT products.

Grainger honors veterans through expanded scholarship program

2010-11-11T12:07:00.000-08:00

Distributor’s Tools for Tomorrow program now includes 50 scholarships specifically for veterans of the armed forces

W.W. Grainger announced today the expansion of its Tools for Tomorrow scholarship program, which provides 75 community colleges nationwide with two, $2,000 scholarships for students enrolled in industrial trades programs.

Making the announcement on Veteran’s Day, Grainger said the program will now allocate one-third of the scholarships—50 altogether—to veterans in recognition of their service to the country. The scholarships go to students enrolled in industrial trades programs such as welding, plumbing, automotive and construction. In addition, scholarship recipients receive a Westward toolkit outfitted for their particular industrial trade skill upon graduation.

“Grainger appreciates the contributions veterans have made to our country and their potential for service in the workplace,” Jim Ryan, Grainger’s chairman, president and CEO said in a statement announcing the expanded program. “Industrial skilled trades are vital to keeping our infrastructure sound and our communities strong. The Grainger Tools for Tomorrow scholarship program empowers future tradespeople to complete their education and helps them start their careers.”

In 2009, there were 22 million veterans over the age of 18, with a significant number likely to enter occupations in installation, maintenance, repair, production and material-moving industries, according to the U.S. Bureau of Labor Statistics. What’s more, a report form the Georgetown University Center on Education and the Workforce recently pointed to a growing mismatch over the next 10 years between available skills and required skills in goods-producing industries such as manufacturing and construction. New jobs in those industries “will look nothing like the old ones and will require employees with postsecondary skills and preparation,” the report said.

Grainger launched its Tools for Tomorrow program in conjunction with the American Association of Community Colleges in 2006. Over the last four years, the distributor has awarded scholarships to more than 200 technical education students at 50 AACC community colleges across the country.

Lawson Products to sell Rutland Tool to MSC

2010-11-10T08:23:00.000-08:00

Deal sharpens Lawson’s focus on its core MRO business, adds to MSC’s metalworking presence on the West Coast

Industrial distributor Lawson Products announced plans to sell its Rutland Tool & Supply Co. subsidiary to MSC Industrial Direct Co. for $11 million in cash. The transaction is expected to close in the fourth quarter.

Whittier, Calif.-based Rutland Tool is an industrial distributor of metalworking and maintenance solutions that generated $33.7 million in revenue in 2009. Lawson said the sale aligns with its strategy to focus on advancing the Lawson MRO business, the company’s most profitable and fastest-growing segment, Lawson said in a statement announcing the deal this week.

"The sale of Rutland will provide us with valuable resources to further invest in and grow our core MRO business," said Tom Neri, president and chief executive officer of Lawson Products. "Through this sale, as well as through the recent sale of Assembly Component Systems, Inc., we are successfully positioning Lawson for profitable growth and ensuring our strong competitive position for the future."

In September, Lawson sold its Assembly Component Systems business to Supply Technologies LLC, a subsidiary of Park-Ohio Holdings Corp., for $19 million.

MSC says the acquisition of Rutland will sharpen its focus on the West Coast metalworking market.

“Rutland is a well-regarded West Coast metalworking distributor that adds to our presence in the region,” said David Sandler, MSC’s president and CEO. “We expect that this acquisition will enhance our West Coast build-out strategy and provide the opportunity for accelerated market share gains and further growth in sales and profitability.”

Distributors and manufacturers continue to post strong results

2010-11-04T09:27:00.000-07:00

Helped by an improving industrial economy, some of the nation’s largest distributors and manufacturers posted double-digit third-quarter sales gains this week

Industrial distributors and manufacturers produced further evidence of an improving business climate this week, as third-quarter results from distributors such as Kaman Industrial Technologies and DXP Enterprises revealed double-digit sales gains.

Connecticut-based Kaman Industrial, which specializes in bearings, power transmission and motion control products, reported third-quarter sales of $223 million, a 37% increase over the same period last year. The results reflect growth from acquisitions as well as a healthier overall business environment, the distributor said in a statement announcing the results.

For the full year, Kaman Industrial said it expects sales to grow 10% to 13%, to between $810 and $830 million.

At DXP Enterprises, which specializes in pumping solutions and MRO supplies, sales rose 20% in the third quarter to $172 million; earnings rose 17% to more than $5 million, or 36 cents a share.

DXP’s sales for the first nine months of the year rose 9% to $487 million compared to the first nine months of 2009. Earnings for the first nine months of the year totaled nearly $14 million, or 93 cents a share, compared to just $8 million, or 57 cents a share, in the same period a year ago.

In addition to strong quarterly results, industrial distributor Fastenal reported solid monthly gains in October, as net sales increased 17% and daily sales increased 22% compared to October 2009. Fastenal also opened seven new stores during the month, bringing the company’s year-to-date new store openings to 97.

Manufacturers reported strong results this week as well, especially in the bearings/power transmission/motion control segment. Motion control manufacturers Regal Beloit and Allied Motion, as well as bearings makers RBC Bearings and NN Inc., all posted strong third-quarter results:

Regal Beloit
Third-quarter net sales roses 27% for the Wisconsin-based manufacturer, to $465 million, reflecting growth in nearly all of the company’s end markets, including strong demand for energy-efficient products (which accounted for 18% of sales).

Sales in the company’s electrical segment rose 25%, reflecting 5% growth in residential HVAC motors, 23% growth in commercial and industrial motor sales, and 34% growth in global generator sales.

Sales in the manufacturer’s mechanical segment grew by 46%, including $9.5 million of incremental sales from acquired businesses.

The company also grew its international business during the quarter, as sales to regions outside the United States represented 31% of total sales compared to 26% of sales in the same period a year ago.

Allied Motion
Third-quarter sales for Allied Motion rose 47% to $22 million, and the company posted a $1.1 million profit, its highest profit since restructuring in 2002. Third-quarter results include the June acquisition of Agile Systems Inc., which now operates as Allied Motion Canada.

For the first nine months of the year, Allied’s sales rose 35% to nearly $60 million. The company posted net income of more than $2 million, or 33 cents a share, compared to a net loss of $13 million, or $1.67 per share, in the same period last year.

RBC Bearings
Bearings-maker RBC Bearings reported $83 million in sales in its 2011 fiscal second quarter ended Oct. 2; that’s an increase of 31% over sales in the same period last year. Earnings rose 95% to nearly $9 million compared to just over $4 million in the same period a year ago.

RBC credited the strength of various industrial segments, including OEM and distribution markets, for the strong results.

NN Inc.
Bearings maker NN Inc. posted a 38% sales increase for its third quarter, to $91 million, citing improved demand for its products in industrial and automotive end markets.

However, the company reported a net loss of $1 million, or 6 cents a share, during the quarter, which included nearly $5 million in non-operating costs, including close to $4 million for plant closings and restructuring; more than $1 million in foreign currency exchange losses on intercompany loans, and $1 million in start-up costs associated with new products in its Precision Metal Components segment.

NN’s sales for the first nine months of the year totaled $269 million, a 49% increase compared with the first nine months of 2010.

Interline’s sales drop 0.4% in Q3 but earnings rise

2010-11-02T05:45:00.000-07:00

Interline also buys CleanSource, a janitorial supplies distributor

Interline Brands, Inc. a distributor of maintenance, repair and operations products yesterday reported sales and earnings for the fiscal 3rd quarter ended September 24, 2010.

Sales for the quarter decreased 0.4% compared to the third quarter of 2009. Earnings per diluted share were $0.34 for the third quarter of 2010, an increase of 6% compared to earnings per diluted share of $0.32 for the same period last year. Earnings per diluted share for the third quarter of 2010 included a $0.02 per diluted share charge associated with ongoing improvements to our distribution network.

Michael J. Grebe, Interline's Chairman and Chief Executive Officer, commented, "We've made meaningful progress over the past year toward improving our operating model, which has resulted in better value and service to our customers, and improved margins at all levels of the business. Although we generated only modest growth in certain areas of our business during the third quarter, we have achieved significant productivity gains as evidenced by our 10.3% EBITDA margin. These productivity gains have been driven, in part, by our sales professionals who are focused on building high-quality relationships with targeted customers. This has taken considerable effort over the past few quarters, but we are now better positioned for it. With our end markets continuing to stabilize, we expect to accelerate proven targeted investments to drive growth. We have successfully done this in the past and are confident these investments will yield strong results given the improvements in our operating model."

Sales for the quarter were $276.8 million, a 0.4% decrease compared to sales of $277.9 million in the comparable 2009 period. Interline's facilities maintenance end-market, which comprised 74% of sales, declined 1.5% during the third quarter. The professional contractor end-market, which comprised 15% of sales, increased 0.1% for the quarter. The specialty distributor end-market, which comprised 11% of sales, increased 4.1% for the quarter.

Gross profit increased $2.6 million, or 2.6%, to $104.8 million for the third quarter of 2010, compared to $102.2 million for the third quarter of 2009. As a percentage of net sales, gross profit increased 110 basis points to 37.9% compared to 36.8% for the third quarter of 2009.

"Our supply chain efforts remain highly focused on reducing our fixed cost structure, driving operating efficiencies, and improving our customer experience through enhanced technology and inventory management. We accomplish this with larger, more sophisticated distribution centers, such as our newest facility in Jacksonville, Florida, which became fully operational during the third quarter. As initial evidence of the success of these types of facilities, in Jacksonville we are now delivering some of the best fill-rates to our customers in the history of our company," commented Kenneth D. Sweder, Interline's Chief Operating Officer.

Sales for the nine months ended September 24, 2010 were $792.2 million, a 1.5% decrease over sales of $804.7 million in the comparable 2009 period.

Gross profit increased $4.4 million, or 1.5%, to $301.5 million for the nine months ended September 24, 2010, compared to $297.1 million in the prior year period.

Interline Brands also announced that it has acquired substantially all of the assets of CleanSource, In., a distributor of janitorial and sanitation ("JanSan") supplies, for $60.1 million, comprised of $54.6 million in cash plus an earn-out of up to $5.5 million in cash over the next two years, subject to working capital and other closing adjustments. The transaction is expected to be neutral to Interline's fiscal 2010 results after acquisition-related expenses, but accretive to future earnings periods.

CleanSource, a regional JanSan distributor headquartered in San Jose, California, primarily serves institutional facilities in the healthcare and education markets, as well as building services contractors. For the twelve-month period ended September 30, 2010, CleanSource generated approximately $115 million of sales.

"The acquisition of CleanSource fits well with our strategy of acquiring well-run businesses with leadership positions in attractive facilities maintenance markets," said Greber. "In addition to being accretive, we believe the acquisition offers numerous opportunities to grow sales and improve profitability.

"In particular, the acquisition enhances our position in the strategically important JanSan market as well as provides us with an opportunity to expand our national account capability to the West Coast. In addition, the transaction provides the potential for meaningful operating and sales benefits as we leverage our platform to generate cost synergies and sourcing benefits, as well as cross-sell more products to deliver a better value proposition to our customers. We have a very high regard for CleanSource's employees, their culture, and their valued relationships with customers and suppliers. They have a strong service-oriented approach, which is an excellent fit with Interline's culture."

Interline Brands, Inc. is headquartered in Jacksonville, Florida. Interline provides maintenance, repair and operations products to a diversified customer base made up of facilities maintenance professionals, professional contractors, and specialty distributors primarily throughout North America, Central America and the Caribbean.

CleanSource is a regional distributor of JanSan products in California. CleanSource provides product solutions and value-added services, including over 4,000 SKUs, to help businesses prosper while maintaining safe, healthy environments for their customers and employees. CleanSource was founded in 1956.

Emerson’s sales increased 5% in fiscal 2010

2010-11-02T05:11:00.000-07:00

Fourth quarter sales rose 14% from prior year quarter

Diversified manufacturer Emerson Corp. today reported that net sales for fiscal 2010 increased 5 percent to $21.0 billion. Underlying sales declined 1 percent, currency translation added 2 percent and acquisitions added 4 percent. Emerging market sales hit record levels of 34 percent of sales and international sales were 57 percent of total sales. Gross profit margin expanded 2.0 points to a record 39.6 percent for the year and operating profit margin reached 16.7 percent.

Earnings per share from continuing operations grew 15 percent to $2.60, which includes a negative $0.04 impact from the Chloride Group PLC acquisition and a negative $0.05 impact from the reclassification of the appliance motors and U.S. commercial and industrial motors businesses to discontinued operations. Net earnings per share increased 25 percent to $2.84, and includes a $0.20 gain from the sale of Motors and a positive $0.04 impact from the results of divested businesses.

“Because of the work accomplished during the downturn, we had a strong finish to the year. Our September order trends accelerated to 18 percent and reveal tremendous momentum heading into fiscal 2011,” said Chairman and CEO David N. Farr. “We are proud of our employees’ accomplishments and the results we delivered. Looking ahead, 2011 should be an even stronger year.”

Net sales for the fourth quarter ended September 30, 2010, were $5.8 billion, an increase of 14 percent from the prior year quarter. Underlying sales in the quarter increased 12 percent, which excludes a 3 percent impact from acquisitions and a 1 percent unfavorable impact from currency exchange rates. Growth was solid across all global markets. Underlying sales in the quarter grew 9 percent in the U.S., 14 percent in Asia, 15 percent in Europe and 11 percent in Latin America.

“Our fourth quarter results reflect continued strengthening in the global economy and improved demand for Emerson’s products,” Farr said. “Businesses are spending again. That’s good for Emerson. In the midst of the harsh economic downturn of the past couple of years, we did what we’ve done before. We repositioned the company to be stronger than ever before.

Emerson’s Industrial Automation group had strong performance in the quarter, with sales increasing 23 percent including an underlying sales increase of 26 percent, a 4 percent unfavorable impact from currency and a 1 percent favorable impact from acquisitions. Recently, Emerson won a major contract to provide power inverters and plant-wide controls for what will be California’s largest photovoltaic facility.

Its Tools and Storage sales were up 2 percent in the quarter, reflecting flat underlying sales and a 2 percent favorable impact from acquisitions. Strength in the tools and disposer businesses was offset by residential storage weakness

Manufacturing surged in October

2010-11-01T08:03:00.000-07:00

PMI rises 2.5 points; manufacturing sector grows for 15th consecutive month

The Institute for Supply Management’s factory index increased to 56.9 last month, the highest since May, from 54.4, the Tempe, Arizona-based group said today. Readings greater than 50 signal the sector is expanding.

Norbert J. Ore, CPSM, C.P.M., chair of ISM's Manufacturing's Business Survey Committee said the report increases expectations for the quarter.

“The manufacturing sector grew during October, with both new orders and production making significant gains," said Ore. "Since hitting a peak in April, the trend for manufacturing has been toward slower growth. However, this month's report signals a continuation of the recovery that began 15 months ago, and its strength raises expectations for growth in the balance of the quarter. Survey respondents note the recovery in autos, computers and exports as key drivers of this growth. Concerns about inventory growth are lessened by the improvement in new orders during October. With 14 of 18 industries reporting growth in October, manufacturing continues to outperform the other sectors of the economy."

Meanwhile, other reports showed that manufacturing in China expanded in October at the fastest pace in six months, while U.K. factory growth unexpectedly accelerated as hiring and export orders improved.

Distributors post strong sales and earnings growth

2010-10-29T09:33:00.000-07:00

Reflecting improved conditions in the industrial sector, Barnes Group, Lawson Products, United Stationers and Avent post strong quarterly results

Several distributors posted strong sales and earnings this week, as the industrial economy continues its climb out of the recession.

Barnes Group
Connecticut-based manufacturer and distributor Barnes Group Inc. posted a 39% earnings gain on top of an 11% sales increase, driven by growth in its North American distribution businesses. Barnes Group’s third-quarter sales hit $290 million, while net income grew nearly 40% to $15 million and earnings per share grew 35% to 27 cents a share.

Barnes’ Logistics and Manufacturing Group, which includes its distribution business, saw a 6% quarterly sales increase, to $139 million. The group’s operating profit fell slightly to $11 million during the quarter.

Lawson Products
MRO and OEM products distributor Lawson Products reported third-quarter sales of $89 million, a 6% increase over the same period a year ago. Adjusted operating income (excluding severance and a favorable legal settlement) rose nearly 60% to $6.5 million.

During the third quarter, Lawson finalized a pending legal claim against a competitor in which Lawson was awarded $4.1 million, of which $3.5 million was realized in the quarter.

Lawson said it continued to make progress on key goals during the quarter, including completing the blueprint phase of its new enterprise resource planning (ERP) system, which it expects to roll out in the second quarter of 2011. The distributor also said it improved sales productivity by transitioning its independent agent district managers to employee district sales managers and by selling Assembly Component Systems, its supply chain management solutions business, which resulted in a $19 million selling price the company will invest in its MRO business.

United Stationers
Business products distributor United Stationers posted a 2% sales gain to $1.3 billion in the third quarter, reflecting strong performance in its industrial supplies category, where sales rose nearly 30%. United Stationers sells office products, industrial supplies, technology products and janitorial/breakroom supplies.

United Stationers’ sales for the first nine months of the year rose 3.4% to $3.65 billion, led by a double-digit increase in industrial supplies and growth in technology and office products. Those increases were partially offset by lower furniture sales and a slight decrease in janitorial/breakroom category sales, the company said.

Avnet Inc.
Electronics distributor Avnet, Inc. posted a record $6.2 billion in sales for its fiscal 2011, ended Oct. 2, 2010. That marks a 42% increase over the previous year. The distributor’s adjusted income rose 108% to $222.5 million while adjusted earnings per share rose 111% over the prior year to 93 cents a share.

Avnet’s chairman and CEO Roy Vallee said the company jump-started its new fiscal year with three acquisitions that will add roughly $4 billion to the distributor’s revenue stream. Avnet completed its acquisition of Bell Micro, Tallard Technologies, and Unidux in July.

“In addition to the financial benefits, the integration of Bell Micro, Tallard Technologies and Unidux are enhancing our competitive position in key technologies, expanding our presence in higher growth geographies and increasing our global scale and scope advantages,” Vallee said in a statement announcing the results.

Airgas sales increase 10 percent in Q2

2010-10-27T13:17:00.000-07:00

Reiterates Air Products’ offer to buy Airgas is “grossly inadequate”

Airgas, Inc. (NYSE: ARG), the largest U.S. distributor of industrial, medical, and specialty gases and related MRO supplies yesterday reported second quarter sales of $1.06 billion, a nearly 10 percent increase over the same period a year ago. The company reported a sequential increase of 1% compared to the first quarter. Acquisitions contributed 1% sales growth over the prior year. Profit increased 22 percent.

Based on the strong earnings report, Airgas again reiterated its contention that the offer from Air Products and Chemicals to buy Airgas was “grossly inadequate.”
In a letter to Air Products after the earnings report, Airgas wrote: “Each of our ten directors is of the view that the current Air Products offer of $65.50 per share is grossly inadequate. In light of Airgas’ strong performance, outstanding prospects, and unique industry position, as well as the enormous financial benefits to Air Products of an acquisition of Airgas, the current offer price is not close to the right price for the sale of the Company.

“Our Board is also unanimous in its views regarding negotiations between Air Products and Airgas. To that end, we read with great interest your and your chief financial officer’s trial testimony, including the testimony that Air Products is attempting to acquire Airgas for the lowest possible price. In contrast, our obligation is to seek the greatest possible price in the event of a sale of the Company. Each member of our Board believes that the value of Airgas in any sale is meaningfully in excess of $70 per share. We are writing to let you know that our Board is unanimous in its willingness to authorize negotiations with Air Products if Air Products provides us with sufficient reason to believe that those negotiations will lead to a transaction at a price that is consistent with that valuation.”

In releasing the numbers for the quarter, Airgas offered an upbeat tone. “Our business continued to strengthen in our second quarter, reflecting broad-based improvement in most of our geographies and customer segments, and with the greatest strength in manufacturing,” said Airgas Chief Executive Officer Peter McCausland.

“Hardgoods same-store sales accelerated noticeably this quarter as compared to gas and rent same-store sales, which is a trend consistent with an economic recovery. While revenues have not yet recovered to pre-recession levels, we are experiencing favorable leverage on sales growth and are achieving near record results for earnings and margins.”

AIT sales rose 21% in Q1

2010-10-27T10:22:00.000-07:00

Applied also raises its guidance for remainder of fiscal 2011

Applied Industrial Technologies has reported an increase in net sales of 20.5 percent in the first quarter of fiscal 2011 that ended Sept. 30. It reported sales of $527,501,000 from $437,743,000 in the comparable period a year ago. Net income for the quarter increased 85.5% to $20,755,000 or $0.48 per share compared to $11,187,000 or $0.26 per share last year.

“We are pleased with the strength shown by our first quarter sales and operating results,”said David L. Pugh, Applied’s Chairman & Chief Executive Officer. “Our sales showed steady growth over prior year comparables throughout the quarter on the basis of increased demand from the majority of our industrial segments. We see this level of demand continuing for the foreseeable future.

“Our attention to detail in the areas of cost control and asset management allowed us toleverage this sales growth into strong operating income and cash flow. Inventories expanded about $10 million net of acquisitions and price increases, as we increased our stock to safeguard against increased lead times in our supply chain.

“We believe that we will continue to see moderate growth in our daily sales run rates
from the current levels throughout the remaining three quarters of our fiscal year. Based on the strength of our first quarter performance, we are raising our earnings guidance for the full fiscal year 2011 and now expect to achieve earnings of $1.80 to $2.05 per share compared to our previous forecast of $1.70 to $1.95. We are maintaining our full-year sales guidance of $2.05 to $2.25 billion.”

Durable goods orders increased 3.3% in September

2010-10-27T10:10:00.000-07:00

Inventories rose for the ninth month in a row

Durable-goods orders increased by 3.3% to a seasonally adjusted $199.16 billion, the Commerce Department said today. This as the biggest rise since January and was primarily due to an increase in aircraft and aircraft parts.

New orders for aircraft and parts doubled to $12.85 billion in September.

Overall transportation equipment orders rose 15.7% to $54.77 billion in September.

Shipments of manufactured durable goods fell 0.4%. And inventories rose for the ninth month in a row, gaining 0.5%.

Durable goods orders are products such as appliances that are designed to last more than three years.

Builders FirstSource posts $20.5 million loss

2010-10-22T10:37:00.000-07:00

Sales slip 4.5% for Dallas-based building materials supplier

Sales for Dallas-based Builders FirstSource slipped 4.5% to $180.4 million in the third quarter, the company reported today. Builders FirstSource also reported a net loss of $20.5 million, or 22 cents per share.

Builders FirstSource is a supplier and manufacturer of building materials for the residential construction market, which continues to experience difficult conditions nationwide. U.S. housing starts fell 14% in the third quarter compared to the third quarter of 2009, and were down by the same amount in the South region, which encompasses Builders FirstSource’s entire geographic footprint.

"Despite the decline in building activity, our sales of $180.4 million were down just 4.5 percent from sales of $188.9 million in the third quarter of 2009,” Builders FirstSource CEO Floyd Sherman said in a statement announcing the results.

Sherman also noted that while pricing in commodity markets has stabilized, Builders FirstSource continues to experience the same competitive pricing pressures that have existed for the last few years. He said current-quarter gross margins declined 1.2 percentage points compared to the third quarter of 2009, although margins improved 1.4 percentage points compared to the second quarter of 2010. He said the company remains focused on cost-containment initiatives, pointing to the temporary idling of four manufacturing facilities in the third quarter—two in Maryland and two in Florida—and two distribution centers—both in South Carolina—in order to reduce operating expenses and excess capacity.

MSC’s fourth-quarter sales rise 30%

2010-10-21T09:07:00.000-07:00

Distributor credits solid results to market share gains as a result of ongoing business investment during the downturn

MSC Industrial Direct today reported sales and earnings for its fiscal fourth quarter and full year ended August 28, 2010.

Fourth-quarter sales rose 30% for the New York-based distributor of metalworking and MRO supplies, reaching $461 million compared to $354 million in the prior-year period. Net income for the quarter was $44 million, up 70% compared to the fourth quarter of 2009. The company’s quarterly earnings rose 70% to 70 cents a share, compared with 41 cents a share in the same period a year ago. MSC noted that the 2010 fourth quarter had one less sales day than the prior-year period.

For the full year, sales rose to $1.69 billion compared to $1.49 billion in 2009, while net income rose to $150 million compared to $125 million last year, and earnings per share were $2.37 compared with $1.99 in 2009.

MSC executives cited ongoing investments in the company throughout the economic downturn as a key to the strong quarterly and full-year results.

“Throughout this period of economic uncertainty, MSC’s strategy has been to invest in the business to capitalize on the opportunities in the marketplace to gain share and grow profitably. I am pleased to say that our results reflect the benefits of these efforts,” president and CEO David Sandler said in a statement announcing the results. “While our recent performance is encouraging, we believe it is only the beginning of a long-term growth story. Looking ahead, we expect to leverage our advantages in the marketplace to continue to generate strong results for all of our stakeholders.”

MSC also announced a new management succession plan. Sandler will continue to serve as president and CEO for the next two to three years before transitioning to vice chairman of MSC’s board of directors, where he will serve until at least 2016.

Erik Gershwind, MSC’s executive vice president and chief operating officer, will succeed succeed Sandler as CEO.

MSC said there are no changes to management roles or responsibilities and no other executive leadership changes at this time.

Eaton’s sales rise 18% in Q3

2010-10-21T05:57:00.000-07:00

Company raises guidance for year

Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) yesterday announced net income per share of $1.57 for the third quarter of 2010, an increase of 38 percent from net income per share of $1.14 in the third quarter of 2009. Sales in the quarter were $3.6 billion, 18 percent above the same period in 2009. Net income was $268 million compared to $193 million in 2009, an increase of 39 percent.

In a press release, Alexander M. Cutler, Eaton chairman and chief executive officer, said, “Our third quarter results significantly exceeded our guidance. The results reflect the outstanding achievements of our employees around the world, who have capitalized on the continued rebound in our end markets while realizing the benefits of the substantial changes in our cost structure implemented over the past two years.

“Our 18 percent sales increase in the quarter was due entirely to an increase in core sales, with a 1 percent increase from acquisitions offset by a 1 percent decline from exchange rates,” said Cutler. “Our end markets increased 14 percent in the quarter.

Accordingly, for the full year, we are raising our earnings guidance by 10 percent. We now anticipate that net income per share will be between $5.30 and $5.40, and operating earnings per share will be between $5.45 and $5.55.”

Third quarter sales for the Electrical Americas segment were $967 million, up 15 percent compared to 2009. Operating profits in the third quarter were $141 million, down 1 percent from results in 2009.

“End markets for our Electrical Americas segment grew 3 percent during the third quarter,” said Cutler. “We saw good growth during the quarter in our early- and mid-cycle markets, particularly in power quality and industrial markets. That growth was largely offset by the weakness in our non-residential markets.

Sales for the Electrical Rest of World segment were $707 million, an increase of 9 percent compared to the third quarter of 2009. The sales increase was comprised of a 12 percent increase in core sales and a 1 percent increase from acquisitions offset by a 4 percent decline due to foreign currency.

In the Hydraulics segment, third quarter sales were $583 million, up 40 percent from the third quarter of 2009. Hydraulics markets in the third quarter grew 44 percent compared to the same period in 2009, with U.S. markets up 58 percent and non-U.S. markets up 34 percent. Operating profits in the third quarter were $76 million. In the third quarter of 2009, operating profits were $20 million, excluding acquisition integration charges of $2 million.

“Global hydraulics markets continued their sharp rebound during the third quarter,” said Cutler. “Our bookings, adjusted for foreign exchange, increased 43 percent in the third quarter. We expect hydraulics markets will show further growth in the fourth quarter, although the rate of growth is likely to be somewhat lower than in the third quarter. For all of 2010, we now expect our markets to grow 31 percent versus our expectation at the end of the second quarter of 26 percent.”

Eaton Corporation is a diversified power management company with 2009 sales of $11.9 billion. Eaton is a global provider of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.

Eaton has approximately 70,000 employees and sells products to customers in more than 150 countries.

ITW sales rise 12.2% in 3Q

2010-10-20T05:32:00.000-07:00

Organic revenues and operating margins higher than expected

Illinois Tool Works Inc. (NYSE: ITW)) yesterday reported 2010 third quarter diluted income per share from continuing operations of $0.83, a 38 percent increase versus the year-ago period. The growth in earnings was largely driven by strong organic revenue performance and ongoing contributions from restructuring activities.

The Company’s third quarter revenues of $4.018 billion were 12.2 percent higher than the year-earlier period. Organic or base revenues grew 11.2 percent in the quarter, with North American base revenues increasing 11.5 percent and international base revenues growing 10.8 percent. While all of the reporting segments produced positive organic revenue growth in the third quarter, the strongest organic revenue increases were produced by the Power Systems and Electronics, Industrial Packaging and Transportation segments. Acquisitions added 3.6 percent to third quarter revenues. Currency translation negatively impacted revenues by 2.4 percent.

“ITW’s third quarter financial results represented strong operating performance amid end markets that largely performed to our expectations,” said David B. Speer, chairman and chief executive officer. “We were pleased, however, that both our organic revenues and operating margins came in at higher than expected levels. While acquired revenues in the third quarter were relatively modest, we remain optimistic that acquisition activity will continue to improve as the year progresses and we move into 2011. Given our existing cash position, we repurchased 8.1 million shares for $350 million in the quarter. We consider our share repurchase program an ongoing part of our capital allocation process and we remain committed to being opportunistic as to its use.'

Total worldwide revenues for the Power Systems and Electronics segment increased 23.7percent in the third quarter versus the year-ago period.

Organic revenues grew 23.8 percent in the quarter due to strong end market demand associated with the welding and electronics businesses. Worldwide welding organic revenues increased 14.8 percent in the third quarter, with North American welding organic revenues growing 19.4 percent. The North American businesses continued to be helped by strong demand for welding products from heavy equipment OEM’s as well as other manufacturing customers. International welding organic revenues increased 5.3 percent in the quarter.

Graybar named to InformationWeek 500

2010-10-19T07:02:00.000-07:00

Electrical distributor makes listed of top technology innovators for eighth straight year

St. Louis-based electrical distributor Graybar was named to this year’s InformationWeek 500, a list of some of the country’s most innovative users of business technology. This marks the eighth consecutive year Graybar has appeared on the list.

In its annual listing, InformationWeek recognizes innovative users of information technology and also tracks the technology, strategies, investments and administrative practices of America’s best-known companies. Graybar was honored for its use of collaboration tools as well as its implementation of software-as-a-service (a technology model in which software is hosted by a provider in a central and remote location and made available to users via the Internet or an Intranet.)

“The InformationWeek listing spotlights companies that develop and execute IT plans that are both innovative and well-rounded," Graybar’s vice president and CIO Scott Clifford said in a statement announcing the award. "Being named to the list for the eighth consecutive time shows Graybar’s continued commitment to technology innovation."

Parker Hannifin sales soar nearly 27 percent

2010-10-19T05:49:00.000-07:00

Company also raises its outlook for year

Diversified industrial manufacturer Parker Hannifin Corp reported today that its net income tripled in the first quarter and it also achieved record profit margins. The Cleveland-based company also raised its full-year profit forecast.
The company said orders jumped in every segment. It expects fiscal-year earnings of $5.20 to $5.80 per share up from $3.60 to $4.40 per share.

With annual sales of $10 billion in fiscal year 2010, Parker Hannifin is a leading manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets.
The company employs approximately 55,000 people in 46 countries around the world.

Fiscal 2011 first quarter sales were $2.8 billion, an increase of 26.5 percent from $2.2 billion in the same quarter a year ago. Net income was $249.0 million compared with $74.0 million in the first quarter of fiscal 2010. Earnings per diluted share for the quarter were $1.51, which is a quarterly record and compares with $0.45 in last year's first quarter

"Demand levels continued to improve across many markets as reflected in a significant increase in sales for the first quarter," said Chairman, CEO and President Don Washkewicz. "Sales improved in every segment, with total sales increasing 27 percent organically, while foreign currency translation negatively impacted sales by 1 percent. Order rates also increased in all segments.

"We are particularly pleased with our ability to leverage improved top line performance into record level operating margins and earnings. Our total segment operating margin performance was at an all-time record level of 15.5 percent, led by record Industrial North America segment margins of 17.8 percent and record Industrial International segment margins of 16.8 percent. We also continued to deliver strong operating cash flow, which gave us the flexibility to make a discretionary contribution to our pension plan."

In the Industrial North America segment, first-quarter sales increased 36.0 percent to $1.1 billion, and operating income was $189.4 million compared with $76.2 million in the same period a year ago.

In the Industrial International segment, first-quarter sales increased 28.5 percent to $1.1 billion, and operating income was $183.8 million compared with $61.8 million in the same period a year ago.
In the Aerospace segment, first-quarter sales increased 4.8 percent to $436.7 million, and operating income was $43.8 million compared with $53.1 million in the same period a year ago.

In the Climate and Industrial Controls segment, first-quarter sales increased 25.5 percent to $234.7 million, and operating income was $21.6 million compared with $10.5 million in the same period a year ago.

Orders increased 31 percent in the Industrial North America segment, compared with the same quarter a year ago.

Industrial production drops 0.2 percent

2010-10-18T08:39:00.000-07:00

Industrial production drops 0.2 percent

U.S. industrial production dropped in September for the first time since June, 2009, according to a report issued today.

Output at factories, mines and utilities fell 0.2 percent, the Federal Reserve said.

Factory production dropped 0.2 percent, reflecting declines in durable goods.
Capacity utilization slipped to 74.7% from a 74.8% rate in August.

Motion Industries' sales rise 29%

2010-10-15T06:56:00.000-07:00

Motion’s parent company, GPC, posts strong results, led by its industrial and electrical businesses

Industrial distributor Motion Industries posted a 29% sales gain in the third-quarter, as sales reached $921 million compared to $711 million in the same period a year ago. A division of Genuine Parts Co., Motion Industries and its sister company, electrical/electronics distributor EIS Inc., turned in the strongest results for the quarter, helping GPC post a 22% earnings gain on top of a 13% sales increase.

GPC’s third-quarter sales totaled $2.95 billion. Net income for the third quarter was $132 million, a 22% increase from $108 million recorded in the same period last year. Earnings per share rose 24% to 83 cents.

GPC’s sales for the nine months ended Sept. 30 were $8.4 billion compared with $7.6 billion in the same period last year. Motion Industries’ sales for the first nine months of the year were $2.6 billion, compared to $2.15 billion in the first nine months of 2009.

GPC chairman, president and CEO Thomas Gallagher pointed to this year’s recovery in manufacturing as key to growth in its industrial and electrical groups.

“Sales for Motion Industries, our industrial group, were up 29% for the quarter, and EIS, our electrical group, generated a 31% increase,” he said in a statement announcing the results. “Both Motion Industries and EIS sell into the manufacturing sector of the economy, which has experienced a nice recovery in 2010 and is performing well today.”

GPC saw solid gains in its automotive group, as sales rose 7% for the second straight quarter. Sales in its office products group were down slightly, in line with the company’s expectations.

PT sales grew in U.S., Canada in August

2010-10-15T05:37:00.000-07:00

U.S. sales were up 7.6 percent

Sales of power transmission/motion control (PT/MC) products by U.S. and Canadian manufacturers grew in August, after a decline in July. U.S. sales were up 7.6 percent and Canadian manufacturers’ sales were up 2.6 percent according to August 2010 sales data released by the Power Transmission Distributors Association (PTDA) in its Market Outlook Report.

In the U.S., year-to-date sales are up 10.2 percent over the same period in 2009. In Canada, sales are 12.0 percent ahead of 2009.

After three months at the neutral position of 5.0, confidence in the market by U.S. manufacturers dropped to 4.8 on a scale of 1 (very pessimistic) to 10 (outstanding). Canadian manufacturers’ confidence rose to 5.2, back from a drop to 4.9 in July.

Grainger reports 19 percent sales growth in Q3

2010-10-14T05:55:00.000-07:00

Distributor raises outlook for year; will hire 150 sales reps

Broad line distributor Grainger Inc. reported today third quarter sales of $1.9billion, an increase of 19 percent versus the 2009 third quarter. Both quarters had the same number of selling days (64). Net earnings for the quarter increased 4 percent to $150 million versus $145 million in 2009.

Earnings per share increased 10 percent to $2.06 versus $1.88 for the third quarter of 2009. In the third quarter of 2009, Grainger obtained a majority ownership of MonotaRO Co., Ltd. in Japan, and recognized a one-time, non-operating gain of $47 million pre-tax, or $0.37 per share, from the revaluation of this investment. The third quarter of 2010, similar to the first two quarters of the year, benefitted from a policy change for employee paid time off that contributed $0.07 per share. Excluding these unusual items from both periods, net earnings increased 25 percent and earnings per share were up 32 percent for the quarter.

"Our focus on the foundational elements of our business, including industry-leading product availability, outstanding customer service and our ability to leverage economies of scale, was responsible for our strong performance in the quarter," said Chairman, President and Chief Executive Officer Jim Ryan.

Ryan added, "We're taking advantage of our strong financial position by accelerating our investment in growth by hiring another 150 sales representatives and onsite inventory services managers, expanding our eCommerce capabilities and further developing services that complement our broad product offering.

“We expect that these investments will contribute to continued market share growth by helping our customers improve their productivity. In the near term however, we expect fourth quarter organic revenue growth to moderate given increasingly tougher comparisons, lower sales contribution from products used to clean up the Gulf of Mexico oil spill and the slowing of the inventory build cycle with our customers. Our strong performance in the first nine months of the year, combined with our expectations for the fourth quarter, gives us confidence to raise our 2010 sales growth guidance to a range of 14 to 15 percent and increase our earnings per share guidance to a range of $6.40 to $6.70, excluding unusual items."

Previous guidance, issued by Grainger in July 2010, forecasted sales growth of 12 to 14 percent and earnings per share of $6.10 to $6.40 for the full year 2010.
Daily sales for the company increased 21 percent in July, 20 percent in August and 18percent in September. For the quarter, acquisitions contributed 5 percentage points, while sales of oil spill related products contributed 3 percentage points. Sales of seasonal products and foreign exchange added 1percentage point each to sales growth in the quarter. Pricing was flat while volume increased 9 percent.

Company operating earnings of $251 million increased 35 percent in the quarter versus $187 million in the third quarter of 2009

The company has two reportable segments, the United States and Canada, which represent approximately 95 percent of company sales. The remaining operating units (Japan, Mexico, India, Puerto Rico, China, Panama and Colombia) are included in Other Businesses and are not considered a reportable segment.
Sales for the quarter in the United States segment increased 15 percent, 13 percent excluding acquisitions. Daily sales increased 17 percent in July, 15 percent in August and 13 percent in September. Sales of products related to the oil spill clean up contributed 3 percentage points to growth in the quarter. Sales of seasonal products added 1 percentage point due to the hot weather experienced across much of the United States in July and August. All customer end markets within the United States posted sales growth versus the 2009 third quarter.

Sales for the Acklands-Grainger business increased 22 percent in U.S.dollars and 15 percent in local currency versus the 2009 third quarter. Acquisitions completed during the last 12 months contributed 3 percentage points to the growth in the quarter. Local currency sales on a daily basis were up 13 percent in July, up 14percent in August and up 19 percent in September. The sales increase in Canada was led by strong growth to customers in the heavy manufacturing, forestry, mining, and oil and gas sectors of the economy, partially offset by a decline in sales to the government and contractors.

Operating earnings in Canada increased 74 percent in the quarter, 64 percent in local currency.

Sales for the Other Businesses, which include Japan, Mexico, India, Puerto Rico, China, Panama and Colombia, increased 191 percent in the quarter versus prior year. This growth was primarily due to incremental sales from the Japanese and Colombian businesses acquired in the last 12 months, combined with strong sales growth in Mexico, India, China and Panama.

The company also announced it has acquired SafetyCertified, a risk and management firm. Please see our previous post.

Grainger buys SafetyCertified

2010-10-14T05:37:00.000-07:00

SafetyCertified is a risk and management business

Broad-line distributor Grainger Inc. said today has acquired substantially all of the assets of SafetyCertified, Inc. Terms of the deal were not disclosed.

"As North America's largest distributor of safety products, we are committed to helping businesses and institutions manage and operate safe and healthy workplaces," said Mike Pulick, President of Grainger's U.S. Business. "As our customers are asked to do more with less, they are looking for a provider who can meet both product and service needs. By integrating new service capabilities like SafetyCertified into our
U.S. business, we will be able to offer solutions that we expect will help our customers maintain regulatory compliance, reduce accident and injury rates and decrease operating costs."

The SafetyCertified business is a safety and risk-management business that offers an online program to assist organizations in their efforts to comply with Occupational Safety and Health Administration (OSHA) regulations, with program features around OSHA analysis, compliance, training and research. Grainger will offer this fee-based online service to complement its extensive safety product line and focus on comprehensive safety solutions.

Fastenal reports strong earnings, sales

2010-10-12T06:40:00.000-07:00

Company opened 90 stores in first nine months of 2010

The Fastenal Company today reported earnings of $200 million, or $1.36 a share, for the first nine months of 2010, compared to $140 million, or 94 cents a share, in the same period a year ago. Sales for the nine months ended Sept. 30th were $1.7 billion, compared to $1.5 billion in the same period a year ago.

Fastenal Company said Tuesday that third-quarter earnings were $75 million, or 51 cents a share, up from $47.6 million, or 32 cents a share, in the same period a year ago. Sales came in at $603.8 million, compared to $489.3 million for the quarter.

During the first nine months of 2010, Fastenal opened 90 new stores compared to 45 new stores in the same period of 2009. The 90 new stores represent an increase of 3.8% since December 31, 2009. Fastenal had 2,369 stores on December 31, 2009.

For the quarter, Fastenal's sales were $604 million, a 23% increase over $489 million in the third quarter of 2009. Third-quarter earnings rose 58% to $75 million, compared to $48 million in the third quarter of 2009. Earnings per share grew 59%, at 51 cents per share compared with 32 cents a share in the same period a year ago.

Fastenal's daily sales to manufacturing customers grew, on an annual basis, approximately 15.7%, 29.8%, and 30.6% in the first, second, and third quarters of 2010, respectively. In the first, second, third, and fourth quarters of 2009, the daily sales of this business contracted 16.0%, 25.2%, 22.8%, and 10.1%, respectively. For the year, total sales to manufacturing customers contracted 18.8% from 2008 to 2009.

Fastenal’s non-residential construction customers have historically represented 20% to 25% of the company’s business. The daily sales of this business contracted approximately 14.7% in the first quarter of 2010 and then grew 0.5% and 6.3% in the second and third quarters of 2010, respectively. In the first, second, third, and fourth quarters of 2009, the contraction was 6.4%, 19.6%, 25.3%, and 24.8%, respectively. For the year, Fastenal’s total sales to non-residential construction customers contracted 19.4% from 2008 to 2009.

Eaton completes acquisition of CopperLogic

2010-10-07T10:48:00.000-07:00

Diversified manufacturer buys maker of electrical and electromechanical systems

Diversified industrial manufacturer Eaton Corp. said this week it completed its purchase of CopperLogic, Inc.

CopperLogic makes electrical and electromechanical systems, employs 170 people, and had sales of roughly $35 million during the last 12 months. The company has operations in the United States and Canada, with headquarters in Houston, Texas, and Mississauga, Ontraio.

The deal boosts Eaton’s business with machinery original equipment manufacturers (OEMs), Eaton said in announcing the deal on September 27.

Eaton has roughly 70,000 employees, sells products to customers in more than 150 countries, and had 2009 sales of $11.9 billion. The company specializes in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.

BlackHawk buys Duncan Industrial Solutions

2010-10-07T08:57:00.000-07:00

It is the first of many expected acquisitions for BlackHawk Industrial Distribution

BlackHawk Industrial Distribution of Tulsa and Brazos Private Equity Partners of Dallas have purchased Oklahoma-based Duncan Industrial Solutions.

BlackHawk is a new company formed by Bill Scheller former CEO of ORS Nasco. Duncan Industrial, a distributor of industrial supplies and equipment, is the company's first acquisition

"Duncan has demonstrated strong performance since it was founded in 1948 and will continue to operate its business in the same fashion going forward,” Scheller said. "Our commitment to Duncan's strategic plan, customers, suppliers, employees and business model will continue to be the foundation upon which we grow our business.”

Duncan has about 160 employees in seven states. The headquarters will remain in Oklahoma City.

"I want to build a national player,” Scheller said. "Duncan is an industrial distributor with deep relationships with its customers.”
Blackhawk will be looking to acquire other companies.

The acquisition of Duncan Industrial by BlackHawk will mean an acceleration of the strategic plan developed by the management team. The focus will be to rapidly grow the business into new market segments, new product categories and new geographical areas.

Blackhawk and Duncan have reportedly identified a pipeline of additional opportunities for growth through acquisitions.

Brazos Private Equity Partners is a middle-market private equity group based in Dallas, TX who partners with individuals, such as Bill Scheller, to invest in companies like BlackHawk and Duncan.

Scheller, the CEO of BlackHawk Industrial, has almost 30 years of experience in the distribution sector, including serving as president and CEO of ORS Nasco.

Avnet acquires two companies

2010-10-05T05:08:00.000-07:00

Avnet distributes electronic components, connectors, semiconductors, technology solutions, computer products and embedded technology.

Avnet Inc. yestgerday announced it had made two acquisitions: certain assets of Eurotone Electric Ltd., a distributor of inverters for wind and solar power applications in China, and Broadband Integrated Resources Ltd., a U.S. company specializing in the repair of broadband and cable TV equipment for support of cable operators and manufacturers.

Broadband, with facilities in Columbus and Dallas, has 50 employees and revenue of $9.5 million, according to Phoenix-based Avnet. Founded in 2001, it will become part of Avnet Logistics Services, which provides value added supply chain and logistics services to the global technology industry.

"This acquisition demonstrates our commitment to expand into adjacent services opportunities and provides an entry into the reverse logistics business as well as a new customer base in North America," stated Steve Church, Senior Vice President; Chief Business Development and Process Officer. "With management, systems and processes that have built a successful reverse logistics business, Avnet Logistics Services will gain a proven platform upon which we can expand our service offerings."

Stanley Black & Decker to close R.I. plant

2010-10-04T05:32:00.000-07:00

Company makes nails, staples and other products under the Bostitch name

Stanley Black & Decker is closing its East Greenwich, R.I. nail and staples factory and will lay off 128 workers. The company said 75 workers will keep their jobs and work at a smaller facility at an undetermined Rhode Island location. The East Greenwich factory makes nails and staples branded with the Bostitch name. In a statement, the company said it was making the move to keep the Bostitch business globally competitive

The shutdown will occur in stages, starting next March, as the factory gradually lays off 128 of the approximately 203 workers who remain there after a series of cutbacks in recent years. The factory will close by December, 2012.

The 75 workers who will keep their jobs will move into a smaller facility at an undetermined location in Rhode Island.
Stanley Fastening Systems, a subsidiary, operates the East Greenwich plant, which manufactures nails and staples branded with the Bostitch name. Production being done in East Greenwich will move to a new facility in Greenfield, Ind.

“This decision was made to realign the fixed-cost structure associated with manufacturing various types of steel fasteners, to enable the Bostitch business to remain globally competitive,” the New Britain, Conn.-based Stanley Black & Decker said in a statement.

The announcement of the shutdown follows earlier rounds of layoffs at the plant over the past several years. At its peak, the factory had about 1,400 workers in the 1980s. A decade ago, it appeared that the factory would close after some production shifted overseas, but it managed to survive. Still, by 2008, the work force had dropped to 633 workers, the Providence Journal reported.
The decline continued with the recession and the downturn in the construction industry. In February, the company announced that it would shut down nail production in East Greenwich this month and eliminate 165 positions.

Textron, the Rhode Island-based conglomerate, acquired Bostitch in 1966, and then sold it in 1986 for $193 million to The Stanley Works, based in New Britain, Conn. Sales were about $200 million then.

The Stanley Works merged with tool manufacturer Black & Decker last March to form Stanley Black & Decker. The company reported sales of $2.4 billion for the second quarter of this year.

Manufacturing slowed in September

2010-10-01T08:52:00.000-07:00

Fourth quarter could be weaker than expected

Manufacturing expanded in September at the slowest pace in 10 months, indicating that that the fourth quarter could be weaker than originally expected.

The Institute for Supply Management’s factory index dropped to 54.4 from 56.3 in August, the group reported today. Readings greater than 50 signal growth.

Norbert Ore, head of the ISM’s survey committee, said the September report was “less encouraging” and suggested a weaker fourth quarter.

Meanwhile, a separate report said today that China’s manufacturing expanded in September at the fastest pace in four months. The purchasing managers’ index rose to 53.8 from an August reading of 51.7,

Growth in European manufacturing slowed. A gauge of manufacturing in the 16-nation euro region declined to 53.7 in September from 55.1 the previous month.

The ISM’s U.S. new orders index declined to 51.1 from 53.1, while the production index decreased to 56.5 from 59.9.

Stock Building Supply reports $46 million loss

2010-09-30T09:15:00.000-07:00

Wolseley, minority owner in Stock, writes off $64 million in Saturn Acquisition Holdings

Stock Building Supply has reported a $46 million loss on revenue of $950 million for the year ended July 31st. Just three years ago, the building materials supply company had sales of more than $5 billion.

Pro Sales magazine had an in-depth report on the report. For the full story go to prosalesmagazine.com

In reporting its financial results yesterday, the U.K. based Wolseley, the largest plumbing and heating distributor in the world and parent of Ferguson Enterprises, said it is moving its tsax residence to Switzerland. The company, which trades in the UK, North American and Europe, said it would create a new group holding company, New Wolseley, that would be UK listed, incorporated in Jersey and have tax residence in Switzerland.

"The board has concluded that the interests of its business and its shareholders are best served by establishing an international holding company corporate structure that will help provide more certainty in its taxation position,"
The change is expected to enable Wolseley to "achieve a competitive effective corporate tax rate."
Wolseley reported total sales of nearly $21 billion, down 9 percent from the previous year.
Wolseley is not paying a dividend this year, but said it hoped to resume payments in the first-half of 2011.
Ian Meakins, chief executive, said: "Whilst overall we remain cautious about the outlook for our markets, we are confident that Wolseley will make good progress in the year ahead."

U.S. economic growth slowed to 1.7% in Q2

2010-09-30T06:16:00.000-07:00

Drop from 3.7% in first quarter

U.S. economic growth slowed to an annual rate of 1.7% in the second quarter, compared with 3.7% in the first quarter and 5 percent at the end of 2009, the Commerce Department said today.

Exports of goods and services rose 9.1%. However, imports rose 33.5%, the largest jump since 1984.

Meanwhile, initial jobless claims dropped by 16,000 to 453,000 last week, lower than what many economists had forecast, the Labor Department said today.
GDP was forecast to grow at a 1.6 percent annual pace, according to several economic forecasts.

Danaher to buy Keithley Instruments

2010-09-29T06:42:00.000-07:00

Keithley will become part of Danaher’s Tektronix business

Danaher Corp. said today that it has agreed to buy Keithley Instruments Inc. , an electrical test instruments and systems manufacturer for $21.60 a share, a deal valued at about $300 million net of cash to be assumed.

"Along with Fluke and Tektronix, Keithley further solidifies Danaher's leading position in the test and measurement industry and presents an attractive value creation opportunity," said Jim Lico, executive vice president at Danaher.
Upon the closing of the transaction, Keithley would be part of Danaher's Tektronix business.

The acquisition, subject to customary closing conditions, is expected to be completed during the fourth quarter of calendar 2010. The acquisition has been unanimously approved by the Keithley board.

Midwest manufacturing index drops 1.4% in August

2010-09-28T07:14:00.000-07:00

Richmond-area index also drops

The Chicago Federal Reserve Bank’s Midwest Manufacturing Index (CFMMI) decreased 1.4 percent in August, to a seasonally adjusted level of 79.9. Revised data show the index rose 1.9 percent in July to 81.0.

Here are some of the numbers contained in the report:
• Regional auto sector output fell 6.9 percent;
• Regional machinery sector production edged up 0.3 percent
• Regional steel sector output grew 0.8 percent; and
• Regional resource sector production rose 0.9 percent.

The region’s auto sector production fell 6.9 percent in August after increasing 7.6 percent in July. The Midwest’s machinery sector production edged up 0.3 percent in August after ticking up 0.2 percent in July. The nation’s machinery production increased 0.7 percent in August.

Meanwhile, the Richmond Fed's seasonally adjusted composite index of manufacturing activity fell to -2 in September from +13 in August. Shipments fell fifteen points to -4, new orders lost 10 points to finish at 0, and the jobs index declined fifteen points to -3.

Durable goods orders drop 1.3% in August

2010-09-24T06:06:00.000-07:00

Excluding transportation, new orders rose 2%

Orders for U.S.-made durable goods fell 1.3% in August, the largest decline in a year and below expectations of many economists, the Commerce Department reported today.

Excluding automotive and aircraft, new orders rose 2%.

Shipments in August fell 1.5%, compared with a gain of 2.5% in the prior month.
Inventories of durable goods rose 0.4% in August, following a gain of 0.6% in July.

Manufacturing has been slowing down , according to other recent surveys.Factories in the New York region expanded in September at the slowest pace this year, while manufacturing in the Philadelphia area contracted for a second month, according to regional Fed surveys. Manufacturing output nationwide grew 0.2 percent in August following a 0.7 percent July gain, the Fed said last week.

PT/motion control sales drop in July

2010-09-24T04:22:00.000-07:00

Power transmission sales are still up year to year in U.S. and Canada

Sales of power transmission/motion control (PT/MC) products by U.S. manufacturers dropped in July by 1.3 percent compared to June and Canadian manufacturers’ sales dropped by 12.3 percent according to July 2010 sales data released by the Power Transmission Distributors Association (PTDA) in its Market Outlook Report.

Although sales dropped in July, sales year-to-date are still ahead of the same period in 2009. In the U.S., year-to-date sales are up 7.6 percent over the same period in 2009. In Canada, sales are 10.3 percent ahead of 2009.

For the third consecutive month, confidence in the market by U.S. manufacturers holds a neutral position of 5.0, while Canadian manufacturers’ confidence dropped from 5.2 back to 4.9 from 5.1 on a scale of 1 (very pessimistic) to 10 (outstanding).

Month-to-month sales for product categories between June 2010 and July 2010 for U.S. and Canadian manufacturers are reported below.
The Market Outlook Report is published monthly by the Power Transmission Distributors Association. The full report includes U.S. and Canadian manufacturer data for sales and order trends for mounted bearings, unmounted bearings, standard industrial motors (U.S. only), variable speed drives, positioning systems/linear motion products, gear products, clutches and brakes, shaft couplings and mechanical drive systems and other PT products.

Timken acquires QM Bearings and Power Transmission

2010-09-23T08:17:00.000-07:00

QM has annual sales of more than $14 million

The Timken Company (NYSE: TKR) has acquired QM Bearings and Power Transmission, Inc., based in Ferndale, Washington. That location, as well as manufacturing facilities in Prince George, British Columbia, and Wuxi, China, along with distribution facilities in Ontario, Texas, and Cuyahoga Falls, Ohio, will become part of the Process Industries segment of Timken's Bearings and Power Transmission Group.

The acquisition is expected to be accretive to Timken's earnings in its first full year with the company. The addition of spherical roller-bearing steel-housed units and elastomeric and steel couplings expands Timken's capabilities beyond its existing, core lines for especially demanding applications such as sawmill and cement operations.

"We welcome QM associates to Timken's family of businesses and look forward to serving our customers with a broader offering of high-performance products for demanding power-transmission applications," said Michael C. Arnold, president of Timken’s Bearings and Power Transmission Group.

QM has approximately 100 employees in the United States, Canada and China, and posted sales of more than $14 million for the 12-month period through June 30, 2010.

General Cable continues to expand internationally

2010-09-23T07:41:00.000-07:00

Company acquires Egyptian manufacturer;joint venture in Oman

General Cable Corporation (NYSE: BGC), has acquired BICC Egypt. BICC Egypt manufactures a wide variety of wire and cable products for the electrical markets including low voltage insulated power and control cables, building wire, instrumentation cable, halogen free power and control cables, and overhead power cables. In the last 12 months, the business reported revenues of approximately $30 million.

The acquisition of BICC Egypt furthers the Company's geographic expansion by establishing a production and commercial base in one of the largest and fastest growing markets in the Mediterranean and North African region. The Company believes the demand for wire and cable products in Egypt will continue to grow faster than many other nations due to increasing investment in infrastructure and power generation projects, a growing population, and a favorable GDP outlook.

General Cable also has formed a joint venture with International Cable Industries LLC (ICI), a limited liability company organized in Oman. The joint venture company in which General Cable will have a majority interest will distribute a wide variety of wire and cable products for the energy, electrical infrastructure and construction markets in Oman and other Gulf Cooperation Council (GCC) countries. General Cable will provide access to a wide range of its products and offer technical support to ICI.

Actuant to divest European Electrical Business

2010-09-23T07:30:00.000-07:00

European electrical busness markets under Kopp brand name

Actuant Corporation plans to divest its European Electrical business, which markets its products primarily under the Kopp brand name. The European Electrical business has previously been reported as part of the Company's Electrical segment.

"This planned transaction reflects our proactive portfolio management efforts to focus on platforms where we can create the most shareholder value," said Robert C. Arzbaecher, Actuant Chairman and CEO.

European Electrical (consisting of Kopp and Dresco) designs, manufactures and markets electrical sockets, switches and other tools and consumables predominately for the European Do-It-Yourself (DIY) retail market. It has operations in Germany, Austria and Tunisia, and employs approximately 525 people. Its annual revenues approximate $105 million.

"The Kopp business has a strong brand and market position, a committed workforce, and prospects for future profitable growth," continued Arzbaecher in a press release. "However, we believe that future growth can be more fully realized with an owner focused on the European DIY market. I want to thank the employees for their many contributions under Actuant ownership. During the divestiture process, the European Electrical business will continue to focus on meeting and exceeding customer requirements for high quality electrical products."

Actuant is a manufacturer of branded hydraulic and electrical tools, highly engineered position and motion control systems, and specialized products and services for energy related industries.

Acklands-Grainger buys Solus Securite

2010-09-21T12:08:00.000-07:00

Canadian distributor has C$20 million in sales

Grainger today announced that its Canadian subsidiary, Acklands-Grainger Inc., Canada's largest distributor of industrial, safety and fastener supplies, has purchased Solus Securite Inc. With 2009 sales of approximately C$20 million, Solus Securite is a leading fire protection and safety distributor in Quebec with locations in Trois Rivieres, Victoriaville, Montreal and Sorel. Terms of the deal were not disclosed.

"Our Quebec customers have told us they want more products and services available to them that help them keep their facilities and employees safe," said Sean O'Brien, President of Acklands-Grainger. "Working together with our new team members and sharing best practices, we will leverage our combined expertise to offer local customers more of the products and services they need, where and when they need them, including safety product repairs and technical support."

"Solus Securite has worked hard since 1978 to provide businesses and institutions in Quebec with quality, full-service distribution and strong technical expertise," said Normand Belanger, President, Solus Securite. "We are thrilled to be joining Canada's leading industrial, safety and fastener distributor and know our customers will benefit from Acklands-Grainger's broad product offering, industry-leading supply chain and commitment to service."

Acklands-Grainger has served Quebec for more than 73 years and employs more than 135 team members in the province. Over the years the company has made significant investments across the province to meet the evolving needs of local business, including its acquisition of Excel Industriel in 2008.

Acklands-Grainger and Solus Securite will continue to operate separately in their respective locations for the immediate future.

Cooper Industries offers strong forecast

2010-09-20T06:53:00.000-07:00

Earnings expected to be at high end of its previous forecast

Cooper Industries plc today announced that its third quarter 2010 revenues are anticipated to exceed the high end of its previous forecast for revenue growth of 2% to 5%, adjusted for the deconsolidation of the Tools segment.

Revenue growth for the third quarter is now expected to be approximately 6% to 8%. Earnings per share in the third quarter are now expected to be in the range of $.82 to $.85, up from the previous forecast of $.75 to $.80. Additionally, it is expected that Cooper will have repurchased over 6 million shares year-to-date by the end of the third quarter.

Cooper will report its fiscal third quarter 2010 results on October 21, 2010.

On July 6, 2010, Cooper announced the completion of the Joint Venture, named Apex Tool Group, LLC. Cooper and Danaher Corporation each own a 50 percent interest in the Joint Venture. The Tools assets and liabilities to be contributed to the Joint Venture in July 2010 have been reclassified to separate lines in the accompanying consolidated balance sheets

Cooper Industries plc (NYSE: CBE) is a global electrical products manufacturer with 2009 revenues of $5.1 billion.

A new web portal for small business

2010-09-20T06:35:00.000-07:00

The site will help small businesses become suppliers to large companies

A consortium of large businesses in a variety of industry sectors is establishing a new web portal making it easier for small businesses to compete with greater ease to sell goods and services to global companies.

AT&T , Bank of America,, Citigroup, IBM, Pfizer,, and UPS have agreed to standardize and simplify the application process required for qualified small- and mid-sized U.S. suppliers to undergo, as they compete for nearly $150 billion in contracts collectively awarded by those companies every year

To facilitate this, the participating companies will establish a free, public website, created and maintained by IBM through a grant of more than $10 million from the IBM International Foundation. The site, to be named "Supplier Connection" (www.supplier-connection.net), will provide visitors with a single, streamlined electronic application form. Small vendors need only complete the application form once to potentially become suppliers to the participating companies. They will be able to more easily connect for opportunities to sell services, marketing, food, human resources, and construction, among others.

Currently, it can be challenging for small businesses to apply as potential suppliers to large companies, as the process can require significant investments of time, money and expertise. The application forms, formats and requirements of each company can vary, making it difficult for smaller suppliers to pursue business with a single large company, let alone multiple global companies. The Supplier Connection Web site aims to accelerate and streamline the application process leading to increased contracting with small- and medium-sized firms.

In a recent study, NY-based Center for an Urban Future documented that small businesses often experience a dramatic increase in revenues and significantly increase their workforce after becoming a supplier to a large corporation, according to a press release from supplier connection.

The Supplier Connection Web site, which is expected to launch in the first quarter of 2011, will enable access by qualified firms to connect for opportunities where the participating companies conduct business. Consequently, qualified firms will more easily have the opportunity to reach not only the U.S. markets, but potentially nearly 200 countries -- the number of places worldwide where the participating companies operate.

As the program advances, it is expected that many large businesses will sign up and many small companies will benefit. The Web site will enable small suppliers to learn from, collaborate with, and sell to each other so that they can become more competitive and successful. It will offer the participating companies a mechanism for sharing valuable business information with these prospective small- and mid-sized suppliers. Large companies will also have easier access to small, innovative companies that generate new products and services.

In fact, small businesses are the heart of the U.S. economy. Between 1993 and 2008, small businesses created at least 65 percent of new private sector jobs, according to the U.S. Small Business Administration. Meanwhile, the U.S. Commerce Department says that small firms in the United States comprise 99.7 percent of all employer firms, provide jobs to fully half of all private sector employees and pay 44 percent of the private sector payroll.

"Everyone says that small business is the engine for economic growth. We believe opening up new markets for goods and services, in the billions of dollars spent by large companies can be the fuel that will allow those small businesses to grow," said Stanley S. Litow, IBM Vice President of Corporate Citizenship & Corporate Affairs, and President of IBM's Foundation. "I liken the mechanism we're unveiling to a Universal College Application, which simplified the way in which students could spend less time filling out redundant forms, and focus more on academic excellence.

"That's what we're trying to do here -- let small businesses do what they do best, grow their businesses and not get bogged down in red tape."

The Web site will enable small suppliers to learn from, collaborate with, and sell to each other so that they can become more competitive and successful. It will offer the participating companies a mechanism for sharing valuable business information with these prospective small- and mid-sized suppliers. Large companies will also have easier access to small, innovative companies that generate new products and services, according to a recent article about the site in the Wall Street Journal.

Air Products takes big step in fight for Airgas

2010-09-15T11:56:00.000-07:00

Air Products today announced that, based on preliminary estimates, all three of its director nominees were elected to the Board of Directors of Airgas, Inc. at today's Annual Meeting of Shareholders. Based on a preliminary count by Air Products' proxy solicitor, MacKenzie Partners, Inc., John P. Clancey, Robert L. Lumpkins and Ted B. Miller, Jr., were all elected to Airgas' board of directors.

Air Products also said that all three of its proposals were approved:
• A proposal amending Airgas’ By-Laws to limit the Airgas Board’s ability to re-seat directors not elected by Airgas shareholders (excluding the Chief Executive Officer)
• A proposal requiring future Airgas annual shareholder meetings, including for 2011, to be held in January
• A proposal repealing all By-Law amendments adopted by the Airgas Board after April 7, 2010

John E. McGlade, Air Products' chairman, president and chief executive officer, said, "Airgas shareholders have provided a clear mandate to negotiate a transaction, and we appreciate their support. We stand ready to negotiate immediately, and call on the Airgas Board to respect the will of its shareholders. Further delay serves no purpose."

In February, Air Products commenced a cash tender offer for all the outstanding shares of Airgas, not already owned by Air Products. The purchase price for the cash tender offer is $65.50 per share.

Airgas has said the offer is inadequate.

Industrial production sluggish in August

2010-09-15T07:01:00.000-07:00

Manufacturing in New York region fails to meet expectations

Industrial production in the U.S. slowed in August as automakers scaled back following an increase in output in July.

Industrial production increased 0.2 percent last month after rising 0.6 percent in July, figures from the Federal Reserve showed today. Factory output climbed 0.5 percent excluding autos, the most since May..

Other reports today showed manufacturing in the New York region expanded at a slower pace than forecast.

The Fed Bank of New York’s general economic index fell to 4.1 this month, the lowest reading since July 2009, from 7.1 in August. Readings greater than zero signal expansion. Measures of orders, sales and employment all improved, showing the drop in the index was mainly a reflection of a loss of confidence.

Small business confidence remains low

2010-09-14T06:17:00.000-07:00

Sub-par growth expected in second half of 2010

The National Federation of Independent Business Index of Small Business Optimism gained 0.7 points in August, rising to 88.8. Most of the improvement was accounted for by gains in expected real sales and expectations for business conditions six months out, the two components that lowered the index in July. But despite their improvements, both measures are still in recession territory.

Sub-par growth expected in second half of 2010“Small business owners are expecting sub-par growth in the second half of 2010,” said Bill Dunkelberg, NFIB’s chief economist. “Consumers are pessimistic, business owners are pessimistic and Washington’s leadership has been unable to inspire any confidence in the future.”

Average employment growth per firm has been negative since April of 2007 and remained negative for 10 of the 12 following quarterly (first month in each quarter) readings. August brought no improvement, with reported job loss averaging negative 0.3 employees per firm (seasonally adjusted).

Eleven percent (seasonally adjusted) reported unfilled job openings, up one point from July but historically very weak. Over the next three months, 8 percent plan to increase employment (down one point), and 13 percent plan to reduce their workforce (up three points), yielding a seasonally adjusted net 1 percent of owners planning to create new jobs, down one point from July but positive for the 4th time in the last 22 months.

The frequency of reported capital outlays over the past six months fell one point to 44 percent of all firms, again hitting the 35-year record low. Of those making expenditures, 29 percent reported spending on new equipment (down one point), 14 percent acquired vehicles (unchanged) and 11 percent improved or expanded facilities (unchanged). Two percent acquired new buildings or land for expansion (down one point), and 7 percent spent money for new fixtures and furniture (down two points). Basically, expenditures are weak across the board.

Seventy-three percent of all owners said the current period was NOT a good time to expand. Of those, 69 percent cited the poor economy as the reason, but 18 percent blamed the political environment, unchanged from July.

“If the poor political environment is top of mind for nearly 1/5th of those opposed to expanding, it is likely second on the list for most of the others,” said Dunkelberg.

The net percent of all owners (seasonally adjusted) reporting higher nominal sales in the past three months was unchanged from July at a net-negative 16 percent, 18 points better than June 2009 but indicative of very weak customer activity. Unadjusted, 25 percent of all owners reported higher sales (last three months compared to prior three months, down one point) while 33 percent reported lower sales (unchanged). Widespread price cutting continued to contribute to reports of lower nominal sales.

“What businesses need are customers, giving them a reason to hire and make capital expenditures and then they may have the need to borrow to support those activities,” said Dunkelberg. “Washington doesn’t seem to understand this. Their proposals to improve the economy typically focus on easing credit conditions or giving businesses incentives to spend. These policies are unlikely to help most small businesses whose main problems remain poor sales and uncertainty over the economy.”

Airgas may buy back $700 million of its stock

2010-09-12T17:34:00.000-07:00

Shareholder meeting will be held Wednesday

Airgas Inc. says it may buy back $700 million of its stock and could overhaul its balance sheet to purchase more should Air Products & Chemicals Inc. withdraw its 5.5 billion hostile takeover bid, according to a report by bloomberg.com.

Airgas can buy 13 percent of its stock at the current price under existing loan covenants Peter McCausland, the Pennsylvania-based industrial-gases distributor’s chief executive officer, said a telephone interview with Bloomberg. Airgas could refinance debt and tap new investors as part of a recapitalization to extend the share buybacks, he said, declining to comment on pricing.

Air Products is threatening to withdraw its bid of $65.50 a share unless Airgas shareholders on Sept. 15 elect its three director nominees and approve its proxy questions at an annual meeting. One of the questions may allow Air Products nominees to seize control of Airgas’s nine-member board in January.

“If this January meeting is turned down and Air Products walks, we will be able to come up with a good solution,” McCausland said, according to Bloomberg. “What is really important is that the remaining shares that aren’t purchased trade at a good price.”
For a full copy of the report, click on to www.bloomberg.com

GHX announces two acquisitions

2010-09-10T13:10:00.000-07:00

Hose and sealing products distributor expands with purchases in Pennsylvania, Florida

Houston-based hose and sealing products distributor GHX Industrial, LLC expanded its reach into Pennsylvania and Florida with two acquisitions, the company announced this week.

In Pennsylvania, GHX acquired Hose Line Industrial, a hose and fittings distributor that gives GHX immediate access to growth opportunities in the region’s natural gas production business—particularly in the growing natural gas production activity in the Marcellus Shale formation. The deal closed in June and builds on GHX’s already strong presence in the upstream oil and gas markets in Texas and Louisiana.

In Florida, GHX recently completed the acquisition of Trident Supply Co., a hose and fittings distributor located in Jacksonville, with three locations serving the southern Georgia and northern Florida markets. The deal expands on GHX’s existing business in the Southeast; the company already serves industrial markets from locations in Pensacola, Fla., and Mobile, Ala.

GHX CEO Dan Ahuero said the company will continue to look for acquisition opportunities as part of a strategic plan to grow the business. The distributor acquired Louisiana-based All Hose & Specialty in 2007 and Texas-based Robsco, Inc. in 2008 as part of its plan to expand into the upstream oil and gas industry, which includes oil and gas drilling, exploration and production.

Atlas Copco acquires Kramer Air Tool

2010-09-09T08:19:00.000-07:00

Purchase price was not disclosed

Atlas Copco Tools & Assembly Systems LLC has agreed to acquire the sales and marketing operation of its current tool distributor Kramer Air Tool Inc., based in Michigan. The agreement further strengthens Atlas Copco’s presence, market coverage and support to customers.

“We are very pleased to integrate the Kramer distributor network into Atlas Copco sales organization and thereby offer our customers an even wider range of sophisticated products, services and accessories. This will bring us closer to our customers” says Mats Rahmström, business area president, Atlas Copco Industrial Technique.

Kramer was founded in 1984 and has been a sole Atlas Copco distributor for Michigan since 1999 for tools and related services to the motor vehicle and general industries. Its headquarters is located in Farmington Hills. Kramer employs around 50 people.

The agreement gives Atlas Copco the rights to sales and service of Atlas Copco’s industrial tools in the state of Michigan. Customers will be transferred to Atlas Copco’s customer center in Michigan. The parties have agreed not to disclose the price.

Atlas Copco is an industrial group with positions in compressors, construction and mining equipment, power tools and assembly systems. The group delivers sustainable solutions for increased customer productivity through innovative products and services. Founded in 1873, the company is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries.

Atlas Copco’s Industrial Technique business area develops, manufactures and markets industrial power tools, assembly systems, aftermarket products, software and service. Principal product development and main manufacturing units are in Sweden, China, France, Hungary and Japan.

ERIKS to buy Texas-based distributor

2010-09-09T07:51:00.001-07:00

Dutch distributor of mechanical engineering components to buy Rawson LP, Houston, Texas

The Netherlands-based global distributor ERIKS said it will acquire Rawson LP of Houston, Texas, expanding its reach in North American process technology markets.

Rawson is a flow control solutions provider and distributor of process control instrumentation, valves and accessories, field instruments, and engineered equipment in the U.S. Gulf Coast. Rawson provides sales, services, and inventory to more than 5,000 customers from 17 locations serving Texas, Louisiana, Mississippi, Oklahoma, New Mexico, Arkansas, and Mexico. Rawson has annual sales of more than $100 million.

Rawson serves the refining, chemical, oil and gas, power generation, pulp and paper, food processing, pharmaceutical and semi-conductor industries.

The company provides products and services in six areas:

• Valve Solutions
• Control Solutions
• Measurement Solutions
• Instrument Support Solutions
• Energy Management Solutions
• Calibration Solutions

Rawson will become an independent business unit within ERIKS USA, the company said in a statement announcing the deal.

ERIKS specializes in five key areas, serving customers in the chemical, pharmaceutical, food, biotechnology, mechanical engineering, semiconductor, refining, offshore, and metal industries. The firm’s five key product areas are:

• Sealing technology
• Power transmission, including electromechanical services and condition monitoring
• Flow technology
• Industrial plastics
• Tools and maintenance products.

Airgas rejects Air Products offer

2010-09-08T11:01:00.000-07:00

Battle ahead at next week’s stockholder’s meeting

Airgas, Inc. today announced that its Board of Directors has unanimously rejected the revised unsolicited tender offer from Air Products & Chemicals, Inc.to acquire all outstanding common shares of Airgas at a price of $65.50 per share in cash. The Board unanimously recommended that Airgas stockholders not tender their shares into Air Products' revised offer. The Board also urges stockholders to vote for Airgas' three directors and against Air Products' By-Law amendment proposals at Airgas' Annual Meeting of Stockholders on September 15.

In a prepared release, Airgas Chairman and Chief Executive Officer Peter McCausland said, "The Airgas Board of Directors is unanimous in its belief that Air Products' revised offer, which represents only a $2.00 per share increase over its previous offer, continues to grossly undervalue Airgas. We believe that this slight increase in Air Products' offer price does not adequately compensate Airgas stockholders for the Company's inherent value, excellent prospects and impressive economic performance since Air Products first announced its offer. The Board is unanimous in its belief that $65.50 per share is not an appropriate value or a sensible starting point for negotiations to achieve such a value."

McCausland concluded, "We believe that Air Products' threat to withdraw its offer if Airgas stockholders do not elect its nominees and approve its By-Law proposals is just another coercive tactic designed to facilitate the acquisition of Airgas at the lowest possible price. If Air Products follows through on its threat, Airgas intends, through repurchases or other transactions, to assist its stockholders who desire to sell their shares in the near term."

See our previous blog posted yesterday in which Air Products increased its offer to purchase Airgas.

2010-09-07T06:33:00.000-07:00

Air Products says it could walk away if Airgas shareholders does not approve its board slate

Air Products and Chemicals Inc. has increased its offer to buy rival Airgas Inc. to $65.50 per share, putting its latest bid at about $5.48 billion. Air Products also said but said it will walk away if Airgas shareholders don't elect its board slate and approve its bylaw proposals.

The new bid represents a 50 percent premium over the closing price for Airgas shares of $43.53 on Feb. 4, the day before Air Products' original bid, which was about $5.1 billion, or $60 per share. Air Products later raised its offer to as much as $63.50 per share, but Airgas has said that "grossly undervalues" the company.

Airgas said in a separate statement Monday evening that its board will review the revised offer, and it is asking shareholders to take no action until that is finished. The Airgas statement noted that the closing price of its stock Friday was higher than the latest Air Products offer.

Air Products Chairman and CEO John E. McGlade said in a statement Monday that his company has given Airgas shareholders "a clear path" to completing a deal.

Air Products wants Airgas shareholders to elect its three nominees to its board and approve some bylaw proposals at its Sept. 15 annual meeting. The bylaw amendments reportedly include some proposed changes to director eligibility requirements, a requirement for Airgas to hold future annual meetings in January and the repeal of all bylaw amendments made after April 7.

Air Products said it is ready to start immediate negotiations with Airgas to complete the deal if shareholders approve its candidates and the bylaw changes. If they fail to do so, Air Products said it will end its offer "and move on to the many other attractive growth opportunities available"

If successful, Air Products would become the biggest industrial gas company in North America.

Airgas, based in Radnor, PA., provides gases, welding products, safety products and other MRO supplies.

U.S. added more jobs in August

2010-09-03T07:45:00.000-07:00

Manufacturing cuts jobs; construction adds jobs

Companies in the U.S. added more jobs than forecast in August,according to a
report today by the U.S. Labor Department.

Private payrolls that exclude government agencies rose 67,000, after a revised 107,000 increase in July that was more than initially estimated, the Labor Department said.

Manufacturing payrolls decreased by 27,000, more than the survey forecast of a 10,000 increase, the fist uptick since late last year.

Construction companies surprisingly added 19,000 workers, the first gain in four months.

Nonfarm payrolls fell 54,000 last month, matching the level of revised losses recorded the previous month, according to the U.S. Labor Department. Economists had predicted a drop of 110,000. The unemployment rate edged up to 9.6%, as expected, after holding at 9.5% for the previous two months.

Manufacturing grew more than expected in August

2010-09-01T07:50:00.000-07:00

The factory growth surprises many economists

Manufacturing in the U.S. expanded at a faster pace than many had forecast in August, rising for the 13th consecutive month.

The Institute for Supply Management’s factory index rose to 56.3 from 55.5 in July, the group said today. Readings over 50% in the ISM index indicate that more firms are growing than contracting.

Norbert Ore, head of the ISM's survey committee, said production drove the index higher.

The production index increased in August to 59.9% from 57.0%.

"There is no sign of double-dip in manufacturing right now," Ore said.

Eleven of 18 industries as tracked by ISM grew in August, led by primary metals, apparel, and transportation equipment

ISM’s U.S. new orders index fell to 53.1 from 53.5.

The employment gauge rose to 60.4 from 58.6 in July and the index of export orders fell to 55.5 from 56.5 the prior month.

Most economists had not expected the index to rise to such a degree. Recent regional factory reports showed the manufacturing expansion weakening. The Federal Reserve Bank of Philadelphia’s general economic index contracted this month for the first time in a year, while the New York Fed’s gauge rose less than forecast.

Steven Smidler takes reins at Kaman Industrial Technologies

2010-09-01T07:30:00.000-07:00

Smidler replaces longtime KIT president Jack Cahill, who retired Aug. 31

Steven Smidler officially takes the reins at Kaman Industrial Technologies this week, replacing T. Jack Cahill, who retired Aug. 31.

Smidler, 51, joined Kaman in December 2009 as senior vice president and chief operating officer of KIT.

Before joining Kaman, Smidler was with Lenze Americas Corp., where he served as executive vice president, with responsibility for marketing, sales, finance, business systems and product technology for the Americas. Smidler was also a member of the management committee of the Lenze Group, Germany, and was president and treasurer for Lenze Americas and served as treasurer and a board member for the Lenze ACTech production company.
Smidler is a 1981 graduate of Purdue University with a bachelor’s degree in electrical engineering technology. He received an MBA from the Fuqua School of Business at Duke University in 2007. Prior to joining Lenze, Smidler held executive positions at Eaton Corporation’s Powerware Division and Rockwell Automation.

Cahill joined Kaman in 1975 as a salesman in Denver and was named president of the company in 1993. During his tenure as president, KIT’s sales grew by almost two-and-a-half times.