This table highlights key financial metrics and trading multiples for 30 publicly traded distributors in the industrial and building products industries up to March 31, 2008. Download this data below. Also find graphic illustrating median EBIDTA multiples for the same distribution ...
Distribution Financial Metrics and Trading Multiples Read More »
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MDM April 25, 2008 Read More »
WESCO International, Inc., Pittsburgh, PA, provider of electrical MRO products, construction materials and integrated supply services, reported sales for the first quarter 2008 were $1.46 billion, up 2.9% after adjusting for a divestiture.
Sales for the quarter from acquisitions were $12 million.
Net income in the first quarter was $44.8 million versus $48.2 million in the comparable 2007 quarter.
Mr. Roy W. Haley, WESCO's Chairman and Chief Executive Officer said: We have seen some deterioration in certain markets related to residential construction activity. We are cognizant of the near-term risks of a slowing economy, and we are balancing the increased investment in business development initiatives with cost containment actions in other areas of ...
WESCO Organic Growth at 2% in 1Q Read More »
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 ...
Kennametal Organic Growth at 4% in 3Q Read More »
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 ...
Applied Industrial Sales Grow 1.7% in 3Q Read More »
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 ...
Builders FirstSource Reports Net Loss in 1Q Read More »
The bid for Industrial Distribution Group, Inc., Atlanta, GA, has gone up again. This time, Luther King Capital Management has offered $12.10 per share in cash, an increase from Platinum Equity's recent bid of $11.80.
Platinum's bid had been made in response to WESCO Distribution's offer of $11.75. WESCO has since announced it would no longer bid for IDG.
LKCM presented IDG an equity financing commitment letter from an LKCM investment fund.
IDG's board is now recommending the LKCM offer.
Platinum could still come back with an increased offer; the private equity firm that also owns Strategic Distribution has until 5 p.m. ET on Friday, April 25, to match or beat the bid.
Luther King Capital Management is IDG's largest ...
Luther King Capital Management Beats Platinum’s Bid for IDG Read More »
Wolseley company Ferguson, Newport News, VA, has opened a new waterworks location in Clifton Park, NY.
The 15,000-square-foot location will include water, sewer, drain and geotextiles ...
Ferguson Opens New Waterworks Location Read More »
Praxair, Inc., Danbury, CT, reported first quarter sales of $2.6 billion, up 22% from the first quarter 2007. Profit was $307 million.
Growth came primarily from new business, plant start-ups, and strong pricing trends.
In North America, first-quarter sales reached $1.4 billion, 21% above the prior year. Sales grew in all major end markets, led by energy and general manufacturing.
In Europe, sales in the first quarter of $390 million grew 18%. Currency effects contributed 13% to sales growth. Underlying sales growth came primarily from growth in merchant and packaged gases volumes in Spain, Italy, and Germany.
In South America, first-quarter sales of $466 million grew 34% versus the prior-year quarter due to higher prices and volumes, ...
Praxair Sales Rise 22% in 1Q Read More »
The Economic Stimulus Act of 2008 provides incentives to businesses to make purchases they may have otherwise put off another year. The incentives include a 50% depreciation allowance for 2008 purchases and an increase in the small business expensing limitation for tax years beginning in 2008.
The National Association of Wholesaler-Distributor's Jade West said that the association worked extensively for it," and that though the act may not significantly change the plans of larger businesses who had planned to make capital purchases anyway, it may change the plans of smaller businesses who want to take advantage of the incentives.
Here are the details per the IRS and NAW:
50% Depreciation Allowance: Depreciation is an income tax deduction that ...
Economic Stimulus Act May Spur Capital Investment Read More »
Recent data offer persuasive evidence that the U.S. recession and financial crisis are having a material impact on the near-term prospects for economic growth in key industrialized regions, most notably Canada, the Eurozone, and the United Kingdom, according to a new report from the Manufacturers Alliance/MAPI.
But while weaker growth is likely in these areas, there are not signs of significant instability in the global picture and a soft landing" for industrialized countries and overall world growth remains within reach, the report says. Further, economic activity remains strong in South Asia and East Asia outside of Japan.
In the MAPI Quarterly Forecast of U.S. Exports, Global Growth, and the Dollar: Second Quarter 2008 Through Fourth Quarter ...
Report: U.S. Slowdown’s Impact on Global Growth Read More »
The bidding war for industrial distributor Industrial Distribution Group Inc., Atlanta, GA, continues, but without WESCO. Pittsburgh, PA-based electrical distributor WESCO has dropped its bid for IDG, according to a statement released this morning.
Platinum Equity, the original victor with its offer of $10.30 per share for the distributor, has upped its bid to $11.80 per share in cash in response to WESCO Distribution's earlier bid of $11.75.
IDG has until 5 p.m., Eastern Time, today (Tuesday) to accept the price or the offer from Platinum Equity will expire.
IDG's Board of Directors have decided to accept Platinum's offer if it does not receive a superior offer from Luther King Capital Management by 3 p.m., Eastern Time, today ...
Platinum Equity Increases Bid for IDG Read More »
Rockwell Automation, Inc., Milwaukee, WI, has agreed to buy Incuity Software, Inc., Mission Viejo, CA, a supplier of Enterprise Manufacturing Intelligence software.
Incuity Software has more than 45,000 seats of its products installed in more than 40 countries in 13 languages. The Incuity Software management team and their employees will become part of Rockwell Automation's Architecture &Software operating segment.
As the demand for Enterprise Manufacturing Intelligence rapidly grows, this acquisition supports our commitment to expand the FactoryTalk software suite and enhance our plantwide information strategy to meet customers'evolving needs,"said Steve Eisenbrown, senior vice president of the company's Architecture &Software segment.
Rockwell ...
Rockwell Automation Agrees to Buy Incuity Software Read More »
Cleveland, OH-based Parker Hannifin, supplier in motion and control technologies, reported sales in the third quarter 2008 were up 14.4% to $3.2 billion. Profit was up 22% to $255.4 million.
Organic growth was 4.3%.
In the Industrial North America segment, third-quarter sales increased 3.7% to $1.1 billion.
In the Industrial International segment, third-quarter sales increased 32.2% to $1.3 billion.
In the Aerospace segment, third-quarter sales increased 7.7% to $470.1 million. During the quarter, this segment was awarded a $2 billion long-term contract to supply the fuel package and hydraulic system for the new Airbus A350 XWB aircraft.
In the Climate &Industrial Controls segment, third-quarter sales increased 0.5% to ...
Parker Hannifin Organic Growth at 4.4% in 3Q Read More »
Owens & Minor, Richmond, VA, reported sales for the first quarter ended March 31, 2008, were $1.75 billion, up 3.9% from the prior-year period.
Profit was up 124% to $24.2 ...
Owens & Minor Record Sales Growth in 1Q Read More »
Graybar, St. Louis, MO, distributor of electrical and communications products and related supply chain management and logistics services, exceeded $5.25 billion in sales during 2007, an increase of 5% over 2006. The company posted profit of more than $83 million, up 45%, from the previous year.
Graybar has more than 250 North American distribution ...
Graybar Sales at $5.25B in 2007 Read More »
Anixter International Inc., Glenview, IL, distributor of communication products, electrical and electronic wire &cable and a distributor of fasteners and other small parts to Original Equipment Manufacturers, reported sales of $1.47 billion in the first quarter 2008, up 11%. Sales included $12.3 million from acquisitions.
Profit in the quarter was up 8% to $57.7 million, from $53.6 million the prior-year period.
More details here ...
Anixter Sales Grow 11% in 1Q Read More »
Environmental sustainability in distribution center facilities is a growing trend, according to Bob Shaunnessey, executive director of the Warehousing Education and Research Council, which recently released its 2007 Facilities Trends Report.
In the spirit of Earth Day -Tuesday, April 22 -some of the changes distribution and manufacturing companies are making: recycling more materials, switching out bathroom facilities to use less water per flush, using less packaging to ship their products and asking suppliers to use less packaging so there is less waste. They are putting in more energy-efficient lighting, and installing motion sensors so that when no one is in a particular area, the lights stay off.
I think 'the right thing to do' set the stage for the ...
Getting Sold on Green Read More »
Crawford Electric Supply, Dallas, TX, a subsidiary of Sonepar USA, has opened a new branch in New Orleans, LA. The main focus is to help with the rebuilding efforts in New Orleans by supplying local commercial and residential markets.
The facility includes a 48,000-square-foot warehouse, with a full-service counter area focused on the pipe, wire, lighting, and electrical business. With brands such as GE distribution equipment, Lithonia, Pass and Seymour, Crouse Hinds, Ideal and others, the New Orleans branch will stock $3 million-$4 million in inventory.
Crawford Electric Supply, also known as CESCO, has other branches in Fort Worth, Houston, San Antonio, College Station, and Austin, TX.
Sonepar USA has 4,400 associates in 11 companies operating ...
Crawford Electric Opens Branch in New Orleans Read More »
Avnet, Inc. plans to acquire Horizon Technology Group PLC in an all cash offer for €1.18 per share, or €98.5 million (US$156.1 million) and a transaction value of €94.4 million (US$149.6 million).
Horizon is a technical integrator and distributor of information technology products in the UK and Ireland.
Horizon's distribution business markets enterprise server, storage, networking and security products from vendors including Sun Microsystems, EMC, F5 Networks Juniper, IBM, and Nortel.
In addition to the traditional distribution business, Horizon's Client Solutions business unit partners with major software vendors including BMC, Microstrategy and SAP to provide a full range of development and implementation services. In 2007, ...
Avnet to Acquire Horizon Technology Group Read More »
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