The 2020 Mid-Year Economic Update_long

Day: November 6, 2007

McNaughton-McKay Electric Buys German Distributor

Electrical distributor McNaughton-McKay Electric Co., Detroit, MI, has acquired S+S GmbH and S & D GmbH in Wegberg, Germany, the largest Rockwell Automation distributor in Germany. S+S/S & D will operate under the name of Mc-Mc GmbH, McNaughton-McKay's German subsidiary.
&nbsp ;
McNaughton-McKay says the acquisition was made in response to customer feedback." It says it wanted to find "a European source for providing technical and logistical support for an increasingly complex supply chain."
&nbsp ;
S+S/S & D has annual revenues of $15 million.&nbsp ; They have sales locations throughout central and southern Germany.&nbsp ; The S+S/S & D operation serves production equipment OEMs that ship their finished Smachines to U.S.-based companies.
&nbsp ;
McNaughton-McKay ...

Emerson Organic Growth at 7% in 2007

Emerson, St. Louis, MO, reported sales for fiscal 2007 were $22.6 billion, an increase of 12% from the prior year. This was a result of 7% underlying sales growth. Currency translation added more than 2% and acquisitions, net of divestitures, added nearly 3% to reported sales growth.
&nbsp ;
Sales for the fourth quarter ended Sept. 30, 2007, were $6.1 billion, an increase of 11% over the $5.5 billion reported in the same period last year. The company achieved underlying sales growth in the quarter of 7% excluding increases of 3% due to favorable currency exchange rates and 1% from acquisitions, net of divestitures.

Process Management in 2007 reported sales were up 17% to $5.7 billion. Underlying sales growth for the year was 11%, which excludes favorable impacts ...

Airgas Buys Central Welding Supply

Airgas, Inc., Radnor, PA, has acquired Central Welding Supply Inc., an industrial packaged gas distributor with three locations south of Dallas, TX.&nbsp ; Also effective Nov. 1, 2007, it has acquired Texas Industrial Gas Inc., with one location in Houston, TX.
&nbsp ;
Both acquired businesses, which generated nearly $6 million in revenues in calendar 2006, have been integrated with Airgas Southwest, one of the regional companies within Airgas. The transactions bring the total number of acquisitions by Airgas in fiscal 2008 to 10, with acquired annual sales of $400 million.
&nbsp ;
Airgas Inc. is a U.S. distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies. Airgas is also a distributor of safety products, a producer ...

Regal Beloit Buys Alstom’s India Business

Regal Beloit Corp., Beloit, WI, has acquired Alstom's motors and fans business in India. The business is in Kolkata, India, and manufactures and markets low and medium voltage industrial motors and fans for the industrial and process markets in India.
&nbsp ;
The business will be reported as part of the Company's Electrical Segment.
&nbsp ;
Regal Beloit expects the business to add $10 million and $80 million to sales for the fourth quarter of 2007 and full year 2008, respectively.
&nbsp ;
According to Henry W. Knueppel, Chairman and CEO of Regal Beloit, The acquisition of the Alstom India industrial motor and fan business is another significant step in the execution of our Globalization initiative. We intend to continue to improve our global commercial presence to ...

VWR International Buys Dutch Distributor

VWR International, LLC, West Chester, PA, a distributor to the global research laboratory industry, has acquired Omnilabo International B.V., a Netherlands-based laboratory supply distributor. Omnilabo has 42 employees based in the Netherlands and Belgium.

Omnilabo since 2003 has been owned by Nimbus, a Dutch private equity firm. The business is a distributor of laboratory and clinical consumables, life science reagents and chromatography products.
&nbsp ;
VWR International has annual sales of $3.3 billion. VWR's principal customers are major pharmaceutical, biotechnology, chemical, technology, clinical, food processing and consumer product companies, universities and research institutes, governmental agencies, environmental testing organizations, and primary and ...

3M Agrees to Buy Bondo Corp.

3M, St. Paul, MN, has agreed to acquire Bondo Corp., a manufacturer of auto body repair products for the automotive aftermarket and various other professional and consumer applications.
&nbsp ;
Bondo brand products include body filler, fiberglass repair materials, under coatings, and adhesives. Bondo products are sold to the auto body professional market through auto body paint specialty stores in addition to mass merchandisers and auto parts retailers.
&nbsp ;
The addition of Bondo enhances our professional and retail auto body product lines," said Ian Hardgrove, vice president and general manager, 3M Automotive Aftermarket Division.
&nbsp ;
3M's Automotive Aftermarket Division products include abrasives and accessories, masking tapes, panel bonding adhesives, ...

Milacron Records Net Loss in Quarter

Milacron Inc., Cincinnati, OH, global supplier of plastics-processing technologies and industrial fluids, reported a net loss for the quarter ended Sept. 30, 2007, of $4.5 million, on sales of $204 million.
&nbsp ;
This compared favorably to the company's net loss in the third quarter of 2006 of $7.2 million.
&nbsp ;
Manufacturing margins in the third quarter improved to 19.7% from 18.7% a year ago, primarily as a result of continued cost-reduction and sourcing initiatives. New orders of $203 million were up slightly from $201 million in the third quarter of 2006 due to currency translation effects.
&nbsp ;
Our efforts to expand our presence in faster-growing, emerging markets continue to pay dividends," said Ronald D. Brown, president and CEO. "Our orders from ...

SYSCO Sales Up to $9.4B in 1Q

SYSCO Corp., Houston, TX, reported sales in its first quarter ended Sept. 29, 2007, grew 8.5% to $9.4 billion from the same period last year. Sales from acquisitions in the past 12 months contributed 0.2% to the sales growth.
&nbsp ;
Food cost inflation, as estimated by the change in SYSCO's cost of goods, was 5.9% for the quarter.
&nbsp ;
Profit was $267 million, up from $230 million in the same period a year ago, an increase of 16%.
&nbsp ;
SYSCO reported that it saw unusually high food cost inflation" for the second consecutive quarter. (See 3Q Inflation Trends by Commodity Group) These conditions contributed to a 21 basis point reduction in gross margins and a 51 basis point decrease in operating ...

RONA Organic Growth 2.5% in 3Q

RONA, Boucherville, Quebec, reported sales in the third quarter 2007 were $1.35 billion, up 6.7% over the third quarter 2006. Profit was up 5.9% to $59.4 million.

Excluding contributions from major acquisitions, including Noble Trade, Curtis Lumber, and Mountain Building Centres, consolidated sales increased 2.5%. Excluding the 0.7% decline due to the drop in forest product prices, same-store sales increased by 0.1% in the quarter.

The distributor and retailer of hardware, home renovation and gardening products also recently announced its agreement to acquire Dick's Lumber in British Columbia.

RONA has 673 stores and eight distribution centers.

Since the beginning of the third quarter, RONA has opened six new stores, three proximity stores ...