The 2020 Mid-Year Economic Update_long

Day: February 20, 2007

HD Supply Hits $12.07B in 2006

HD Supply reported sales of $12.07 billion in fiscal 2006, an increase of 161.6% over 2005. Most of that growth was driven by the almost $4 billion in acquisitions made in the past year.


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HD Supply bought diversified distributor Hughes Supply last year at a premium of $3.4 billion. Hughes had sales of $5.4 billion in 2005.


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In 2006, the retail division had sales of $79 billion, up 2.6%.


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Overall, sales at The Home Depot were $90.8 billion, 11.4% over last year, with profit at $5.8 billion. Comparable store sales for the year were down 2.8%.


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In the fourth quarter 2006, sales for HD Supply grew by 64.4% to $2.9 billion, reflecting sales from acquisitions.


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Home ...

Huttig Building Products Closes NY DC

Huttig Building Products, St. Louis, MO, distributor of millwork, building materials and wood products, has closed its distribution facility in Hauppauge, NY, as part of the company's effort to downsize in response to the recent downturn in the housing market.


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About 30 jobs will be eliminated.


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While we continue to believe the Long Island, NY, market has long-term potential for more localized distribution of millwork and specialty building products, unfortunately now is not the time for making the additional investments that would be required in today's market environment, said President and CEO Jon Vrabely.


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Huttig has 41 distribution centers serving 46 states. It serves mostly building materials dealers, ...

Lone Star Fasteners Continues Expansion in UK

Lone Star Fasteners, Houston, TX, has acquired LWD Precision Engineering Co. Ltd., a manufacturer of precision engineered components for the global oil and gas industry, for $6 million. LWD, based in Leeds, UK, manufactures precision machined components for valves, actuators and other related critical applications.


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"The purchase of LWD is our latest step in the strategic expansion of Lone Star's product and geographic market coverage, said Lone Star CEO Bruce Ross.


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The acquisition of LWD follows Lone Star's June 2006 acquisition of Leeds-based Grange Gaskets, a provider of standard and specialty gaskets, and related machined parts.&nbsp ; Tony Sitek, managing director of Lone Star's Grange subsidiary, will assume overall management ...

Genuine Parts Company Sales Grow 7% in 2006

Genuine Parts Company, Atlanta, GA, reported sales in 2006 were $10.5 billion, up 7% compared to 2005. Net income for the year was $475.4 million, an increase of 9% from 2005.


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By division:




  • Automotive: $5.185 billion in sales, up 3.4%

  • Motion Industries: $3.107 billion, up 11%

  • Office Products: $1.779 billion, up 7%

  • Electrical/Electronic: $408 million, up 19%

In the fourth quarter ended Dec. 31, 2006, sales increased 6% to $2.54 billion.


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In the fourth quarter, Automotive Group sales were up 2%, Motion Industries up 11%, EIS (Electrical/Electronics Group) up 17%, and SP Richards, the office products group, up 4%.

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Altra Industrial to Buy TB Wood’s

Altra Holdings, Inc., Quincy, MA, has agreed to buy power-transmission product manufacturer TB Wood's Corporation, Chambersburg, PA, for $24.80 a share.


TB Wood's, with sales of $118.9 million in 2006, will become a fully owned subsidiary of Altra.

“TB Wood's is a great fit with the existing Altra platforms and meets our disciplined acquisition philosophy perfectly, said Michael L. Hurt, chairman and CEO of Altra. “The acquisition of TB Wood's broadens our growing coupling product line and adds engineered belted drive systems as well as adjustable speed electronic drives and systems to our product portfolio."


TB Wood's offering of elastomeric couplings fills a gap for Altra and will expand engineered coupling revenues by more than 50%. ...