The 2020 Mid-Year Economic Update_long

Day: October 23, 2008

Stock Building Supply to Close 86 Branches

Wolseley plc, UK-based distributor of plumbing and heating products and building materials, reported it would not sell Stock Building Supply but instead extensively restructure the U.S. building materials distributor.
The company will close 86 branches, bringing the number down to 209. It will be leaving 16 markets in six states, while leaving a presence in 27 states. And Stock will reduce headcount by 3,000. About 8,700 employees will remain. Stock has cut about 55% of its work force since 2006, its peak.
The 86 branches to be closed represent about 25% of Stock's revenue and 28% of its headcount. 
The decision comes after a six-month review of the business.
Chip Hornsby, Group Chief Executive of Wolseley, said: With the ongoing ...

Kennametal Organic Growth at 3% in 1Q

Kennametal Inc., Latrobe, PA, reported sales increased in the first quarter by 9% to $669 million. Organic sales growth was 3%. Profit was $35 million, flat from the previous quarter.
Our September quarter performance again demonstrates the effectiveness of our strategies to further balance Kennametal across geographies and end markets," said President and CEO Carlos Cardoso. Cardoso also attributed the quarter's results to a better geographic balance, with 54% of the company's revenues coming from outside North America.
Metalworking Solutions &Services Group sales increased by 6% during the September quarter, driven primarily by favorable foreign currency effects which increased sales by 6 percent. Increased workdays added a further 2 percent which was offset by ...

Avnet Sales Up in 1Q

Electronics distributor Avnet, Inc., Phoenix, AZ, reported sales of $4.49 billion for first quarter fiscal 2009 ended Sept. 27, 2008, representing an increase of 9.7% over the prior-year period and 7% excluding the impact of changes in foreign currency exchange rates.
Organic growth was up 0.9%.  
Profit for first quarter fiscal 2009 was $92.8 million as compared with net income of $105.5 million for the first quarter last year.
 Our September quarter continued a multi-quarter trend of muted organic growth rates as sluggish demand in several end markets persisted," said Roy Vallee, CEO. "Although it is difficult to predict how macro conditions will impact tech demand over the next few quarters, we will continue to focus on achieving our ...

WESCO Sales Up 5.3% in 3Q

WESCO International, Inc., Pittsburgh, PA, distributor of electrical MRO products, construction materials and integrated supply services, reported sales in the third quarter 2008 were $1.62 billion, up 5.3% from the prior-year period. Profit was $66 million, down from $72 million in the prior-year period.
Stephen A. Van Oss, chief financial and administrative officer, said gains were driven primarily by strength in commercial construction and utility end markets.
We are very mindful of the extraordinary challenges being experienced in the financial industry and the anticipated spillover into the commercial end markets," said Roy W. Haley, CEO. "We have taken a conservative approach to managing our overall cost structure while investing to expand our sales ...