The 2020 Mid-Year Economic Update_long

Day: April 24, 2008

Kennametal Organic Growth at 4% in 3Q

Kennametal Inc., Latrobe, PA, reported sales for its fiscal 2008 third quarter increased 12% from the prior-year quarter, including organic sales growth of 4%.
Our global growth strategies and initiatives continued to deliver results as we grew sales in both of our business segments at a solid pace in the March quarter. The team achieved this growth despite reduced industrial activity in North America and in some market sectors," said Kennametal CEO Carlos M. Cardoso. "Our sales gains, along with a robust improvement in the operating margin of our metalworking business, made a strong contribution to Kennametal's overall operating performance."
"Our advanced materials business, however, was challenged during the quarter by continued slower conditions in certain ...

Applied Industrial Sales Grow 1.7% in 3Q

Cleveland, OH-based Applied Industrial Technologies reported third-quarter sales were up 1.7% to $530.1 million from the prior-year period. Profit for the quarter was up 8.7% to $23.6 million.
For the nine months ended March 31, 2008, sales increased 5% to $1.6 billion. Profit increased 15.7% to $71 million. 
Sales during the quarter were impacted by the continued deterioration of the housing and the automotive markets, and this weakness appears to be migrating into other sectors as consumers and businesses are becoming a bit more anxious about the economy," said David L. Pugh, CEO. "While we do not expect significant economic improvement during the fourth quarter, based on our results to date and the continued strength in our operational controls, we expect ...

Builders FirstSource Reports Net Loss in 1Q

Builders FirstSource, Inc., Dallas, TX, reported a net loss of $15.8 million on sales of $270.5 million for the first quarter ended March 31, 2008. Sales volume was down 32.8%.
The macroeconomic conditions that affect our industry have deteriorated for eight consecutive quarters. Housing starts in our markets fell 39.1% in the quarter ending March 2008 when compared to the quarter ending March 2007. On a sequential basis, actual housing starts in our markets were down an estimated 17.9%, but we saw a slight seasonal improvement in March," said Floyd Sherman, Builders FirstSource CEO.
"With the prolonged decline in macroeconomic conditions, we are experiencing pricing pressure from both our customers and competitors. As a result of these pricing pressures and the ...