The 2020 Mid-Year Economic Update_long

Day: October 15, 2007

Grainger Sales Up 9% in 3Q

Grainger, Chicago, IL, reported sales grew 9% in the third quarter ended Sept. 30, 2007, to $1.9 billion. Net earnings increased 4%.
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For the nine months ended Sept. 30, sales were $4.8 billion, up 9% and net earnings were up 11%.
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We are pleased with our solid sales and earnings growth in the quarter. Going forward, we continue to look for ways of improving productivity and efficiency," said CEO Richard L. Keyser. "In the fourth quarter, for example, we have identified up to 125 positions we can eliminate in information technology. As a result, we anticipate & hellip; savings of up to $12 million in 2008."
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Daily sales improved throughout the quarter versus the prior year: up 7% in July, 9% in August and 11% in September.
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Private Equity Firm Invests in Industrial Fluids Supplier Houghton

Houghton International Inc, a privately-held provider of industrial fluids and chemical management services, announced on Monday that it agreed to merge with a newly-formed affiliate of private equity investment firm AEA Investors LLC.
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The company will continue to function under the Houghton International name.
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Through the proposed partnership with AEA Investors LLC, we expect to enjoy greater access to capital, which will enable us to provide our customers with customized metalworking fluids and chemical management services," said William MacDonald Jr., president of Houghton ...

Eaton Sales Up 7% in 3Q

Diversified industrial manufacturer Eaton Corporation, Cleveland, OH, reported sales were up 7% in the third quarter 2007, and profit up 6% over the same period a year ago.
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Sales in the quarter were $3.3 billion.
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Sales growth consisted of 1% from organic growth, 3% from acquisitions and 3% from exchange rates.
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Alexander M. Cutler, Eaton CEO, said: We outgrew our end markets by 5% this quarter, which was offset in large part by a 4% reduction in our end markets, resulting in 1% organic growth."
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"& hellip; Due to the economic uncertainties triggered by the late summer turmoil in global credit markets, we believe that our overall markets in the fourth quarter will not improve as we had earlier anticipated. While the ...

Wholesale Prices Rise 1.1% in September

The Producer Price Index for Finished Goods increased 1.1 percent in September, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported.&nbsp ; This advance followed a 1.4-percent decrease in August and a 0.6-percent rise in July.
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The index for finished goods excluding foods and energy moved up 0.1 percent in September after increasing 0.2 percent in August. At the earlier stages of processing, prices received by producers of intermediate goods turned up 0.4 percent after declining 1.2 percent a month earlier, and the crude goods index rose 0.1 percent following a 3.0-percent drop in August.
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PT/MC Product Sales Rise Nearly 10% in August

U.S. distributors'sales of Power Transmission/Motion Control products continue to fluctuate, rising 9.9% from July to August after a 7% drop in sales the prior month, according to recent Power Transmission Distributors Association month-end trend data. Year-to-year comparisons remain positive with sales in August 2007 coming in 6.0% higher than in August 2006.
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Accounts receivable collection days were down 5.5% over July 2007. The August 2007 confidence index for U.S. distributors remained unchanged for the sixth month in a row at 6.6 (on a 10-point scale).
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Canadian distributors'sales in PT/MC products were also up, increasing 1.5% from July to August 2007. Year-to-year comparisons continued to rise, gaining 1.1% over sales in August of 2006. Account ...

Danaher to Buy Tektronix for $2.8B

Danaher Corporation will acquire Tektronix, Inc., Beaverton, OR, for $2.8 billion, including debt.
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With annual revenues of approximately $1.1 billion, Tektronix is a supplier of test, measurement, and monitoring products enabling the design, manufacture, and management of next-generation global communications networks, computing and advanced technologies. The supplier has operations in 19 countries.
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Tektronix's products are sold to the communications, computer, semiconductor and consumer electronics industries -as well as military/aerospace, education and a broad range of other industries.
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Tektronix would become part of Danaher's Electronic Test platform, joining Danaher's Fluke and Fluke Networks businesses, and nearly doubling the platform's ...

Smiths Group to Buy Sartorius

British technology group Smiths Group will buy German-based hydrodynamic bearing manufacturer Sartorius Bearing Technology GmbH AG.
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The purchase price is 20 million euros.
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Sartorius Bearing Technology GmbH is to be integrated into the John Crane business of Smiths, which focuses on the design and manufacture of seals
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The Sartorius Group will continue to focus on its two core areas: biotechnology and mechatronics, as well as on its major groups of customers, the biopharmaceutical, chemical and food industries.
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For fiscal year 2007, Sartorius expects sales of 15 million ...