July 2007 - Modern Distribution Management

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July 2007

Construction Spending Down Slightly in June

Leave a Comment / Top Distributor Sectors, Subscriber Only, Research & Analytics, News, Free, Economic Trends, Building Materials/Construction /

Construction spending in June 2007 was estimated at a seasonally adjusted annual rate of $1,175.4 billion, 0.3% below the revised May estimate of $1,178.4 billion. The June figure is 2.4% below the June 2006 estimate of $1,204.0 billion.
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During the first six months of the year, construction spending amounted to $550 billion, 3.5% below the $570.1 billion for the same period in 2006.
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Spending on private construction was at a seasonally adjusted annual rate of $890.9 billion, 0.3% below the revised May estimate. Residential construction was at a seasonally adjusted annual rate of $544.4 billion in June, 0.7% below the revised May estimate of $548.3 billion. Nonresidential construction was at a rate of $346.6 billion in June, 0.3% above the revised May ...

Construction Spending Down Slightly in June Read More »

Air Liquide Expands in Serbia

Leave a Comment / Top Distributor Sectors, Subscriber Only, News, Gases & Welding Equipment, Free /

Global industrial gases company Air Liquide has increased its presence in Southeastern Europe by creating a subsidiary in Serbia.
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Over the past three years, Serbia has been one of Europe's fastest growing economies with an average annual GDP growth of 7.3%. It is the most industrialized country in ex-Yugoslavia. Its major growth drivers are telecommunications, construction and transport, with a recent upswing of industrial production. Its strategic position allows good access to transportation corridors between Western and South-Eastern Europe and Turkey.

The move is part of Air Liquide's goal to establish a stronger presence in the region. Since the end of last year, Air Liquide has operated an Air Separation Unit in Romania and is supplying cylinder and ...

Air Liquide Expands in Serbia Read More »

Timken Sales Grow 3% in First Half

Leave a Comment / Top Distributor Sectors, Subscriber Only, Power Transmission/Motion Control/Fluid Power, News, Free /

The Timken Company, Canton, OH, reported sales of $1.35 billion in the second quarter of 2007, an increase of 4% over the same period a year ago. Strong sales in industrial markets were partially offset by the divestment of the company's automotive steering and European steel operations.
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During the quarter, the company:

  • Completed the first major U.S. implementation of Project O.N.E., a program designed to improve business processes and systems;

  • Made further progress on key additions to Industrial Group capacity in Asia and North America;

  • Advanced its restructuring initiatives within its Automotive and Industrial Groups; and

  • Completed the closure ...

Timken Sales Grow 3% in First Half Read More »

EnPro Buys Compressor Products International

Leave a Comment / Top Distributor Sectors, Subscriber Only, Power Transmission/Motion Control/Fluid Power, News, Mergers & Acquisitions, Free, Finance /

EnPro Industries Inc., Charlotte, NC, manufacturer of engineered industrial products, has acquired Compressor Products International, a privately-held company that designs, manufactures and services sealing components for reciprocating compressors.
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CPI, Hungerford, Berkshire, England, manufactures critical sealing components for reciprocating compressors and related equipment for both compressor manufacturers and for the oil, gas and petrochemical industries.
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It will be combined with EnPro's France Compressor Products business to create the world's largest manufacturer of reciprocating compressor sealing components.
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This acquisition is a very positive step for FCP and CPI, as well as for EnPro," said Ernie Schaub, EnPro president and chief ...

EnPro Buys Compressor Products International Read More »

DXP Enterprises Sales Up 22.3% in 2Q

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DXP Enterprises, Inc. reported profit of $3.4 million for the second quarter ending June 30, 2007, compared with profit of $2.9 million in the second quarter 2006.
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Sales increased 22.3% to $85.3 million from $69.8 million in the prior-year period. Sales by the businesses acquired in 2006 and 2007 accounted for $13.3 million of the sales increase. Excluding sales by the acquired businesses, sales for the second quarter of 2007 increased 3.2% from the prior-year period.
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Year-to-date profit for the six months ended June 30, 2007, increased 31% to $7.1 million. Sales increased 27.7% to $169 million from $132.3 million for the first six months of 2006. Sales by the businesses acquired in 2006 and 2007 accounted for $23.5 million of the sales increase. Excluding ...

DXP Enterprises Sales Up 22.3% in 2Q Read More »

Industrial Distribution Group Considers Strategic Alternatives

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Industrial Distribution Group, Inc. announced it has formed a committee of independent directors to review strategic alternatives for the industrial distributor, which has about $500 million in annual sales. It also announced it expects revenue for the second quarter to be $132.6 million, down from last year.
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In addition, the company preannounced announced a cost-reduction program and related changes to its executive team.
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The independent committee will be led by the company's non-executive chairman of the board, Richard M. Seigel.
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IDG needs to consistently grow revenues at a higher level while also seeking a strategic way to reduce its cost profile, both of which have been a source of concern," Seigel said. "It is imperative that we take ...

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Industrial Manufacturers to Grow International Sales

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Pricewaterhouse Coopers released the results of its quarterly survey of industrial manufacturers, who have downgraded their growth expectations for the next 12 months, citing oil and energy costs and competition from foreign markets, as well as high interest rates and unfavorable exchange rates. On the U.S. side, 62% expect growth in the domestic economy.
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However, manufacturers are quite optimistic about the global economy, with 78% of respondents expecting growth over the next 12 months. This is not surprising based on earnings reports I see on a day-to-day basis; respondents expect their international sales to increase, on average, to 35% of total revenue ...

Industrial Manufacturers to Grow International Sales Read More »

Advance GDP Estimate: Growth of 3.4% in 2Q

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Real gross domestic product -the output of goods and services produced by labor and property in the U.S. -increased at an annual rate of 3.4% in the second quarter of 2007, according to advance estimates released by the Bureau of Economic Analysis.&nbsp ; In the first quarter, real GDP increased 0.6%.
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The Bureau emphasized that the second-quarter advance" estimates are based on source data that are incomplete or subject to further revision by the source.&nbsp ; The second-quarter "preliminary" estimates, based on more comprehensive data, will be released on Aug. 30, ...

Advance GDP Estimate: Growth of 3.4% in 2Q Read More »

SKF to Buy Bearings Supplier

Leave a Comment / Top Distributor Sectors, Subscriber Only, Power Transmission/Motion Control/Fluid Power, News, Mergers & Acquisitions, Free, Finance /

SKF has agreed to buy S2M, a subsidiary of British company Edwards Limited, a manufacturer of magnetic bearings, for 55 million euros (US$75.04 million).
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S2M has annual sales of 40 million euros (US$54.5 million). It is headquartered in Vernon, France.
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S2M focuses mainly on the European markets, with end-user segments in vacuum pumps, small air and gas compressors, turbo expanders and compressors in the oil and gas industry.
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S2M will be part of SKF's Industrial ...

SKF to Buy Bearings Supplier Read More »

Kaman Opens Four Branches

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Kaman Industrial Technologies, Windsor, CT, distributor of bearings, power transmission, electrical, and motion control products, has opened new branches in Lathrop, CA, Bradenton and Port St. Lucie, FL, and Danville, IL.
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Kaman Industrial Technologies is a subsidiary of Kaman Corp. of Bloomfield, CT., which conducts business in the aerospace, industrial distribution and music markets. Kaman Industrial Technologies has 200 ...

Kaman Opens Four Branches Read More »

Huttig Building Products Sales Down 20% YTD

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Huttig Building Products, Inc., distributor of millwork, building materials and wood products, reported sales in the second quarter were $239.6 million, down 19% from the prior-year period.
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Sales to national accounts, or 35% of sales in the second quarter, declined by only 17%.
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Jon P. Vrabely, president and CEO, said: This quarter represents the first profitable quarter for Huttig since a year ago, just before the significant downturn in the housing market."

Sales for the first six months of 2007 were $461.9 million, a 20% decrease over the prior-year period. This decrease is primarily attributable to the 27% drop in housing ...

Huttig Building Products Sales Down 20% YTD Read More »

Valley National Gases Acquires Mitchell Industrial

Leave a Comment / Top Distributor Sectors, Subscriber Only, News, Mergers & Acquisitions, Gases & Welding Equipment, Free, Finance /

Valley National Gases Inc., Washington, PA, has acquired Mitchell Industrial Supply Inc, an industrial gases and welding supply distributor in Elkhart, IN. Mitchell serves customers throughout Northern Indiana and Southwest Michigan.
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Valley National Gases is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies, propane and fire protection equipment. Valley National Gases operates 75 locations in 14 states, with eight production and distribution centers in the eastern ...

Valley National Gases Acquires Mitchell Industrial Read More »

RBC Bearings Acquires Coastal Bearing Services

Leave a Comment / Top Distributor Sectors, Subscriber Only, Power Transmission/Motion Control/Fluid Power, News, Mergers & Acquisitions, Free, Finance /

RBC Bearings Inc., Oxford, CT, an international manufacturer of precision plain, roller and ball bearings, has acquired CBS/Coastal Bearing Services, Houston, TX, for $3.7 million in cash.
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CBS manufactures, inspects and refurbishes large bearings for the oil and mining industries, as well as other general industrial applications with sizes ranging up to 124 inches in diameter. CBS has sales of $3.1 million for the year ended Dec. 31, 2006.

RBC said that CBS represents another step in our strategy to expand our presence in the large bearing segment."

RBC operates 17 manufacturing facilities in four ...

RBC Bearings Acquires Coastal Bearing Services Read More »

Wolseley Appoints VP of Acquisitions for NA

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UK-based Wolseley plc has appointed Dan Parr to vice president of Acquisitions and Business Integration for Wolseley's North American Division, comprised of Ferguson, Stock Building Supply and Wolseley Canada.
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He will oversee acquisitions, and coordinate business integration and installation into Wolseley's systems and processes.

Parr began his career with Ferguson in 1988 as an Internal Auditor. He was promoted two years later to internal audit manager and transferred to Atlanta, Ga., in 1993 to become the integration manager for our Hub, Inc. acquisition. Parr returned to headquarters in 1995 as manager of Acquisitions and Installations, and was promoted to director in 2003 and to vice president in ...

Wolseley Appoints VP of Acquisitions for NA Read More »

Europe Offsets Fall in Saint-Gobain U.S. Sales

Leave a Comment / Top Distributor Sectors, Subscriber Only, News, Free, Building Materials/Construction /

Saint-Gobain overall sales were up 6% in the first half of 2007 to US$29.8 billion (21.7 billion euros).
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All the group's sectors saw a rise in sales, with organic growth overall at 6.9%.
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Construction markets in Europe, bolstered by the impact of regulations promoting energy efficiency, offset the downturn in the U.S. housing market. Sales were strong in Asia and emerging countries (organic growth of 19%).
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Construction Products posted a 4.1% organic growth rate. About three-fourths of sales in this sector come from Europe and emerging countries. Only a quarter is in the U.S.
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The Building Distribution sector posted a 13.3% rise in sales, buoyed by acquisitions, and organic growth of 8.7%. Strong sales were seen in France, ...

Europe Offsets Fall in Saint-Gobain U.S. Sales Read More »

Inflation by Commodity Group – Second Quarter 2007

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These 16 select product groups provide a snapshot of inflation trends in industrial and construction channels. Second quarter 2006 is compared with second quarter 2007, and the first quarter 2006 with the second quarter 2007.

Metals & Metal Products
Plumbing Fixtures & Fittings
Fasteners
Hardware
Hand & Edge Tools

Chemicals & Allied Products
Adhesives & Sealants
Industrial Gases

Machinery & Equipment
Mechanical Power Transmission Equipment
Pumps, Compressors & Equipment
Electrical Machinery & Equipment
Ball and Roller Bearings
Metal Valves, Except Fluid Power
Industrial Material Handling Equipment
Fluid Power Equipment

Inflation by Commodity Group – Second Quarter 2007 Read More »

Get Paid for the Value You Add

Leave a Comment / Subscriber Only, Strategy, Sales & Marketing, Management /

The last five years have been rough for distributors. Price pressure and intense competition have eliminated razor-thin margins, pushing many distributors to the brink. In addition, distributors have gotten into the habit of "giving away" value-added services in hope of winning deals, driving costs to historic heights. The solution: Revamp pricing based on the value you provide in each segment.

Many distributors believed that a resurgent economy would allow them to raise prices, but customers have been resistant. For most distributors, attempts at price increases are simply not taking hold.

Fortunately, there is a better, more profitable approach. The solution is to develop products and services that target unique segments with very specific offers. For most ...

Get Paid for the Value You Add Read More »

Kennametal Sales Up 6% in 2007

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Kennametal Inc., Latrobe, PA, reported sales in fiscal 2007 were $2.4 billion, up 6% on an organic basis. The growth was partially offset by the net impact of acquisitions and divestitures of 7%.
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In 2007, Kennametal expanded its advanced materials segments with the acquisitions of the Sintec Group and the Camco Group, as well as Purity Metal Holdings Inc. Kennametal also added to its metalworking segments with Federal Signal Corporation's cutting tool business, and completing the purchase of the company's Spanish affiliate, Kenci S.A.
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Sales in the fourth quarter were $657 million, up 6% on an organic basis. In the fourth quarter, Metalworking Solutions & Services Group sales were higher by 15% overall, with 5% organic growth. Europe sales were up 9%; Asia ...

Kennametal Sales Up 6% in 2007 Read More »

Praxair Sales Grow 12% in 2Q

Leave a Comment / Top Distributor Sectors, Subscriber Only, News, Gases & Welding Equipment, Free, Companies /

Praxair, Inc., Danbury, CT, reported sales in the second quarter 2007 increased to $2.3 billion, 12% above the same period a year ago. Sales growth was led by significant new business coming on-stream in the energy sector and new business in Asia and South America.
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Profit was up 18% to $291 million.
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In North America, second-quarter sales reached $1.3 billion, 12% above the prior-year quarter. Sales growth came primarily from higher sales to energy and general manufacturing markets, followed by electronics, healthcare and food and beverage.
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In Europe, sales in the quarter of $336 million grew 14%, and increased 6% excluding currency effects, as compared to the prior year. Underlying sales growth was broad-based across Europe and most major end ...

Praxair Sales Grow 12% in 2Q Read More »

Rockwell Automation Sales Grow 9% in 3Q

Leave a Comment / Top Distributor Sectors, Subscriber Only, Power Transmission/Motion Control/Fluid Power, News, Free /

Rockwell Automation, Inc., Milwaukee, WI, reported sales in the third quarter 2007 were $1.28 billion, up 9% from the same period in 2006. Profit was $164.2 million, compared with profit of $149 million last year.
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International sales increased 13%, excluding the effect of currency translation, with continued strength in Europe and Latin America, and improved performance in Asia Pacific and Canada. From an end-market perspective, sales growth in consumer industries outpaced the growth in resource-based industries.
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Rockwell expects a gradually expanding global industrial economy across most end markets through the remainder of the year in into fiscal 2008.
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The Control Products & Solutions segment sales were $698.1 million, an increase of 8%. ...

Rockwell Automation Sales Grow 9% in 3Q Read More »

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