The 2020 Mid-Year Economic Update_long

Day: August 16, 2007

Thomas & Betts to Buy Lamson & Sessions for $450M

Thomas & Betts Corporation, Memphis, TN, has agreed to acquire Lamson & Sessions for $450 million in cash.
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Lamson & Sessions, with its Carlon brand and trademarked Blue Box, is a North American supplier of non-metallic electrical boxes, fittings, flexible conduit and industrial PVC pipe.
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For the calendar year 2008, Thomas & Betts's preliminary assessment is that the acquisition will contribute $500 million to revenues.
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In addition, the company is assessing strategic options regarding Lamson & Sessions' PVC pipe business, potentially resulting in a divestment of that unit.
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Thomas & Betts Corporation is a manufacturer of electrical components used in construction, industrial and utility markets. The company is also a ...

PT/MC Sales Up 2.2% in June

Following last month's jump in sales, U.S. distributors'sales of PT/MC products continue to increase with a 2.2 percent growth from May to June, according to the Power Transmission Distributors Association June 2007 month-end trend report. Year-to-year comparisons remain positive with sales in June 2007 coming in 4.7 percent higher than in June 2006. Accounts receivable collection days continue to decline, dropping 1.4 percent when compared to May. The June 2007confidence index for U.S. distributors remained unchanged for the fourth month in a row at 6.6 (on a 10-point scale).
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Canadian distributors'sales in PT/MC products fell 2.1 percent from May to June after a rise in last month's sales. Year-to-year comparisons were relatively stable with a 0.3 percent increase over ...

MAPI Forecast: Inflation-Adjusted GDP Growth Will Slow

In the face of continuing weakness in the housing sector, growth in the U.S. economy is expected to be slower than previously anticipated, according to a new Manufacturers Alliance/MAPI quarterly report.

The Manufacturers Alliance/MAPI Quarterly Economic Forecast predicts that inflation-adjusted GDP growth, 3.3 percent in 2006, will slow to 1.9 percent in 2007 before regaining some strength, rising to 2.5 percent in 2008.

The most recent forecast represents a pullback from the May 2007 report, when MAPI envisioned GDP to grow by 2.3 percent in 2007 and by 3.0 percent in 2008. By supplying major assumptions for the economy and running simulations through the Global Insight Macroeconomic Model, the Alliance generates unique macroeconomic and industry forecasts.


June Machine Tool Consumption up 5.1%

June U.S. manufacturing technology consumption totaled $347.70 million, according to The Association For Manufacturing Technology and the American Machine Tool Distributors' Association. This total, as reported by companies participating in the USMTC program, was up 5.1% from May, and up 0.4% from the total of $346.47 million reported for June 2006. With a year-to-date total of $1,982.52 million, 2007 was up 7.7% compared with 2006.
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These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.
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Through the first half of this year, manufacturers have continued to increase purchases of advanced production equipment," said John B. Byrd III, AMT President. "These strategic investments ...

Housing Starts Down 6.1% in July

According to the U.S. Census Bureau and the Department of Housing and Urban Development, privately-owned housing starts in July were at a seasonally adjusted annual rate of 1,381,000. This is 6.1 percent below the revised June estimate of 1,470,000 and is 20.9 percent below the revised July 2006 rate of 1,746,000.
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Single-family housing starts in July were at a rate of 1,070,000; this is 7.3 percent below the June figure of 1,154,000. The July rate for units in buildings with five units or more was 275,000.

Building Permits
Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,373,000. This is 2.8 percent below the revised June rate of 1,413,000 and is 22.6 percent (& plusmn; 1.3%) below the ...

LN Acquisition Corp. Acquires Reelcraft

LN Acquisition Corp., St. Louis, MO, a Harbour Group company, has acquired Reelcraft Industries, Inc., Columbia City, IN.
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Reelcraft Industries, Inc., is a manufacturer of spring-driven hose, cord, and cable reels for use in industrial, automotive, aerospace, military and specialty applications.
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Reelcraft has facilities in the U.S., Canada, England and China. President Walt Sterneman will continue to lead the business after the transaction.
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Reelcraft will join Lincoln Industrial and Alemite within LN Acquisition.
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Bart Aitken, CEO of LN Acquisition, said: We don't expect the marketplace to see significant changes; Lincoln, Alemite and Reelcraft will continue to market their products through their respective sales channels and ...