The 2020 Mid-Year Economic Update_long

Day: November 8, 2007

Wolseley Makes Five Bolt-On Acquisitions

Wolseley plc, the UK-based global distributor of plumbing and heating products to professional contractors and a supplier of building materials, announced five bolt-on acquisitions for an aggregate of 84 million pounds Sterling (US$174 million).
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In a full year, these bolt-on acquisitions are expected to add 109 million pounds (US$226 million) to total revenue.
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Stock Building Supply has purchased three companies in the U.S. (Article)
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HVAC and plumbing distributor Ferguson has acquired J.D.'s Wholesale Plumbing & Supply, Pagosa Springs, CO. J.D.'s had sales of $0.7 million in 2006.
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Wolseley France has acquired Sofiparts SAS, which designs and assembles roof trusses operating from ...

Stock Building Supply Expands in Commercial, Industrial Market

Stock Building Supply has expanded once again in the commercial and industrial markets.
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Stock has acquired Architectural Building Supply Company, with facilities in Utah and Idaho, and Jacobi Hardware Co. Inc., Wilmington, NC, both fabricators, distributors and installers of commercial doors, hardware and access control devices for commercial and institutional projects.
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ABS had revenue of $36 million in calendar 2006. Jacobi had revenue of $3.3 million.
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Stock has also acquired KBC Construction LLC, a turn-key framer and wall panel manufacturer in Albuquerque, NM. In the year ended Dec. 31, 2006, KBC had sales of $16.6 ...

Saint-Gobain Gypsum Enters Vietnam

Saint-Gobain Gypsum has moved into Vietnam through the purchase of Vinh Tuong Joint Venture, created at the beginning of 2007 and owned by Vinh Tuong Corp., Universal Cement (Taiwan) and Compact Resources (Singapore).
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The company, Vinh Tuong Joint Venture, has a manufacturing plant near Ho Chi Minh City that can produce up to 9 million square meters of plasterboard. It employs 84.
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Vietnam benefits from the high growth of the building market, and particularly of the plasterboard market whose use has been recently introduced in the country.
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This acquisition will enable Saint-Gobain Gypsum -which has been exporting to Vietnam via its Thai company for more than 10 years -to consolidate its strong position in the Vietnamese market. It represents a ...

Rexnord Organic Growth at 8.6% in 2Q

Rexnord LLC, Milwaukee, WI, diversified manufacturer in power transmission and water management products, reported sales for the second quarter ended Sept. 29, 2007, were $453.9 million, an increase of 52.3% over the prior-year period.

Organic growth was 8.6%. Power transmission sales were up 9.3% to $325.9 million, an increase of $25.9 million. The Water Management platform accounted for $128 million of Rexnord's year-over-year growth.

Rexnord attributed growth in the PT sector to strength in end markets of mining, energy, aggregates and aerospace. Foreign currency fluctuations also favorably impacted sales by $7 million during the quarter as the Euro and Canadian dollar strengthened against the U.S. dollar compared to the prior year.

Sales in the first six ...

Canadian Manufacturer Optimism Wanes

Canadian manufacturers' optimism in the last two quarters waned as they looked ahead to the final three months of&nbsp ; 2007. According to the October Business Conditions Survey by Statistics Canada, manufacturers indicated heightened dissatisfaction with the level of orders received, while production prospects weakened.

Although they remained positive in the fourth quarter of&nbsp ; 2007, manufacturers were more guarded as they continued to face important labor shortages, coupled with ongoing pressures caused by the Canadian dollar reaching parity with the U.S. greenback.

Manufacturers' outlook on production prospects weakens
In October, the proportion of manufacturers stating they would increase production over the next three months stood at&nbsp ; ...

Rockwell Automation Sales Up 10% in 2007

Rockwell Automation, Inc., Milwaukee, WI, reported full year 2007 sales of $5 billion, up 10% from 2006. Foreign currency translation added 3 percentage points and acquisitions added 1 percentage point to the growth rate.

Profit was $1.48 billion, which includes an after-tax gain of $868.2 million related to the Power Systems divestiture. Excluding this and other one-time charges, profit was $597 million for the year.

Sales in the fourth quarter 2007 were $1.37 billion, up 15% from the prior-year period. Organic growth was 8%. Profit was $165.2 million, slightly down from the same period a year ago.

Control Products & Solutions fourth quarter sales were $801 million, an increase of 20 percent compared to sales of $667.4 million in the fourth quarter of ...