The 2020 Mid-Year Economic Update_long

Day: February 7, 2007

Stock Building Supply Announces Store Cuts

Home Channel News has reported that Stock Building Supply, the U.S. building materials distribution arm of Wolseley plc, has announced some specifics in its cost-cutting plans. The latest: It will close 22 stores in 12 states, reducing its work force by 200.


The locations are Norfolk, VA; Springfield, OH; Mundelein Yard, IL; Richmond, Fort Wayne and Indianapolis, IN; Reed City, Cadillac, Plainwell, Hillman, Kalkaska and North Oakland, MI; Lindstrom and Rush City, MN; Princeton and Janesville, WI; Temple Millwork and San Antonio Truss, TX; Manti, UT; Blackfoot, ID; Springs Stair, CO; and Signal Hill Sash/Door, CA.


The closed stores are in areas that can be serviced by larger Stock stores in the same market, according to Wolseley.


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84 Lumber Sales in 2006 Hold Steady from 2005

84 Lumber Company, Eighty Four, PA, a privately held supplier of building materials and services to professional contractors, posted $3.92 billion in sales for 2006, holding steady from 2005.


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"Despite a tough year in the housing market with starts dramatically down in the second half of the year and material prices depressed, we saw benefits from our three-year strategic growth plan launched in April of 2006. We increased market share and sold more product, which are positive signs as we move into 2007, said 84 Lumber Company President Maggie Hardy Magerko.


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The company is on track to add at least 23 new stores this year in high-growth markets, as well as 11 component manufacturing ...

RONA Buys C$150M Plumbing Distributor Noble Trade

Hardware and renovation products distributor and retailer RONA, Boucherville, Quebec, has acquired Noble Trade Inc., a plumbing and heating supply wholesaler in Ontario with annual sales of about C$150 million. The purchase price was close to 7X EBITDA, RONA executives said in a conference call.


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Noble Trade was created in 1998 with the merger of Trade Plumbing Supplies and Noble Plumbing Supplies. The company has posted average annual sales increases of 27% since 1998. Most of that growth was organic, with either new stores or sales growth at existing stores, said Noble President Michael Storfer.


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Storfer said Noble sold to RONA because it ...

Timken Sales Up 3% in 2006

The Timken Company, Canton, OH, reported sales of $5 billion for 2006, up 3% from a year ago. Sales exclude Latrobe Steel, which the company sold in December and has accounted for as discontinued operations.


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Timken benefited from strength in global industrial markets, partially offset by declines in demand from the company's North American automotive customers during the second half of 2006.


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Timken benefited from strong industrial markets in 2006, although lower automotive demand constrained our overall performance, said James W. Griffith, Timken's president and CEO. More importantly, we advanced sweeping changes across the company, including initiatives to grow in Asia and key industrial markets, investments to differentiate our ...

Code Hennessy & Simmons Invests in Mainline Supply

Code Hennessy & Simmons LLC, Chicago, IL, has made an equity investment in Mainline Supply Company, Charlotte, NC, a distributor of underground infrastructure products in the Southeast.


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Mainline specializes in underground water, sewer and drainage utility products that transmit potable and non-potable water to treatment plants, storage towers and pumping stations. The customer base includes municipalities, developers and utility contractors in residential, commercial and municipal construction projects.


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Mainline has 1,800 customers in 16 branches in seven states in the Southeast and Mid-Atlantic regions.


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We are poised for continued growth through geographic expansion, new product introductions and ...