February 2009 - Page 2 of 5 - Modern Distribution Management

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February 2009

ABC Supply Acquires Chesapeake Siding & Roofing

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, Building Materials/Construction, News, Subscriber Only /

ABC Supply Co. Inc., Beloit, WI, has acquired Chesapeake Siding and Roofing, a wholesale distributor of exterior building products.  The transaction includes two locations - one in Chesapeake, VA, and one in Jarvisburg, NC.
 
The acquisition of Chesapeake Siding and Roofing fits our strategy of providing accessible locations in all major geographic markets as we continue to build a national network of wholesale distribution centers for the professional contractor, said David Luck, CEO and president of ABC Supply.
 
All 15 Chesapeake Siding and Roofing employees will be retained by ABC Supply.
 
With the two new locations, ABC Supply has 18 branches in the Mid-Atlantic ...

ABC Supply Acquires Chesapeake Siding & Roofing Read More »

The Home Depot Reports $54 Million Loss For 4Q

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The Home Depot, Atlanta, GA, reported a net loss of $54 million for the fourth quarter ended Feb. 1, 2009, compared with net earnings of $671 million, in the same period in fiscal 2007. Sales for the fourth quarter totaled $14.6 billion, a 17.3% decrease from the fourth quarter of fiscal 2007.
 
Fourth quarter results reflect a pre-tax business rationalization charge of $387 million, taken to  exit its EXPO, THD Design Center, YardBIRDS and HD Bath businesses and reduce support staff functions. Results were also impacted by a pre-tax write-down of the Company's investment in HD Supply of $163 million, as well as a loss from discontinued operations of $52 million.
 
Sales for fiscal 2008 were $71.3 billion, 7.8% below fiscal 2007. Profit decreased 47.7% to $2.3 ...

The Home Depot Reports $54 Million Loss For 4Q Read More »

Timken Expands Wheel Seals Offerings

Leave a Comment / Free, Top Distributor Sectors, Power Transmission/Motion Control/Fluid Power, News, Subscriber Only /

The Timken Company, Canton, OH, is expanding its line of wheel seals and installation tools for the heavy-duty truck aftermarket. 
 
The Outrunner line of products complements the company's existing product line and offers a premium wheel seal designed to meet the performance demands of low-maintenance wheel ends.
 
Two designs of this seal are available from Timken, with the design of both variations promoting ease of installation and reduction of friction. Other features include an interlock design that provides enhanced dust- and leak-prohibiting protection, which lengthens bearing uptime and extends maintenance ...

Timken Expands Wheel Seals Offerings Read More »

Bunzl Sales Grow 17% In 2008

Leave a Comment / Plumbing Products & PVF Distribution, Free, Companies, Top Distributor Sectors, HVACR, News, Subscriber Only /

Global distributor Bunzl plc reported sales for 2008 were £4.18 billion (US$6.04 billion), an increase of 17% over 2007 sales. Profit improved 9.3% to £142.2 million (US$206.7 million).
 
Sales in North America increased 12% due to stronger organic growth and a strengthened American dollar in the second half of the year. Acquisitions drove sales in the U.K. and Ireland up 11%. Sales in continental Europe grew 34%.
 
The Group once again had a successful year in 2008 due to a combination of organic growth, the positive acquisition impact in both new and existing geographies and the benefit of currency translation, Chief Executive Michael Roney said. Bunzl continued to expand its presence in target markets in 2008, including Brazil and ...

Bunzl Sales Grow 17% In 2008 Read More »

Builders FirstSource Sales Fall 32.4% in 2008

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Dallas, TX-based Builders FirstSource, Inc., supplier and manufacturer of structural and related building products for residential new construction, reported sales for fiscal 2008 were $1.03 billion, a decline of 32.4%. Net loss was $139.5 million, compared with a loss of $23.8 million in the prior year.

For the fourth quarter ended Dec. 31, 2008, sales were $201.3 million, a year-over-year decline of 30.6%. Sales volume dropped 27.9%. Net loss for the quarter was $58.9 million, compared with a net loss of $20.4 million in prior-year period.

Builders FirstSource expects difficult housing conditions to continue through the end of 2009.

Builders FirstSource operates in 11 states, principally in the southern and eastern U.S., and has 58 ...

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Interline Brands Sales Fall 3.5% in 2008

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Interline Brands, Inc., Jacksonville, FL, distributor and direct marketer of maintenance, repair and operations products, reported sales in the fourth quarter 2008 fell 7.5% from the prior-year period.
 
Sales for the quarter ended Dec. 26, 2008, were $277.6 million. Average organic daily sales fell 9.3%. Interline's facilities maintenance end-market, 67% of sales, declined 5.7% during the fourth quarter on an average daily sales basis, and declined 8.4% on an average organic daily sales basis. The pro contractor end-market, 20% of sales, declined 14.6% in the quarter and the specialty distributor end-market, which comprised 13% of sales, declined 5.5% for the quarter. Fourth quarter 2008 operating income of $15.9 million, or 5.7% of sales, decreased 46.1% ...

Interline Brands Sales Fall 3.5% in 2008 Read More »

PT/MC Sales Continue To Slow

Leave a Comment / Economic Trends, Research & Analytics, Free, Top Distributor Sectors, Power Transmission/Motion Control/Fluid Power, News, Subscriber Only /

The Power Transmission Distributors Association (PTDA) reported that U.S. distributors and manufacturers experienced overall growth in sales in 2008 while their Canadian counterparts experienced a decline in sales. Confidence in the market (as measured on a scale of 1 to 10 with 10 being most optimistic) has eroded overall, holding a current neutral position between 4.6 and 5.2 versus a range of 5.0 to 5.8 at year-end 2007.
 
Growth in sales of PT/MC products is definitely slowing. Following a moderate growth rate of 6.6% in 2007, U.S. distributors saw a 4.3% increase in PT/MC product sales in 2008. The annualized sales-to-inventory ratio for 2008 was at 6.5, compared to 7.6 in 2007.
 
Canadian distributors ended the year with a drop in sales of 0.5%, ...

PT/MC Sales Continue To Slow Read More »

Barnes Group Reports 4Q Loss of $10 Million

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Barnes Group Inc., Bristol, CT, recorded a loss of $10 million for the fourth quarter 2008, as compared to profit of $17.6 million for the same period 2007. Sales for the quarter declined 25% to $265.4 million.
 
For the full year, sales were $1.36 billion, down 4% from 2007. Profit was down 14.2% to $87 million.  
 
Fourth quarter sales in Logistics and Manufacturing Services were $146 million, down 16% from the same period last year. Operating profit was $5.4 million, compared with $12.5 million in the fourth quarter of 2007. Sales declines were driven primarily by slowing customer demand in North American and Europe.
 
Full year segment sales were $691.8 million, down 2%.  
 
Precision Component fourth quarter sales dropped 34% in ...

Barnes Group Reports 4Q Loss of $10 Million Read More »

Forecast: GDP to Decline 2.1% in 2009

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The latest Manufacturers Alliance/MAPI Quarter Economic Forecast predicts that inflation-adjusted gross domestic product (GDP), which grew by 1.3% in 2008, will decline 2.1% in 2009 before rebounding to 2.2% growth in 2010. The GDP forecast for 2009 in the current MAPI report is double the previously anticipated 1% decline for this year projected in the November 2008 release. 

We are in the midst of a very severe global recession in manufacturing which looks to be the worst recession since 1973-74 in terms of depth and duration, said Daniel J. Meckstroth, MAPI chief economist. "Manufacturing did not create the problem but is paying the price for the problems that began in the financial markets." 

MAPI economists ...

Forecast: GDP to Decline 2.1% in 2009 Read More »

Wholesale Prices Rise 0.8% in January

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Wholesale prices rose 0.8% in January, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported. This increase followed declines of 1.9% in December and 2.5% in November.
 
At the earlier stages of processing, the decrease in prices for intermediate materials slowed to 0.7% from 4.2% in the prior month, and the index for crude materials declined 2.9% after dropping 5.3% in December.
 
The upturn in the index for finished goods was led by the index for energy goods, which increased 3.7% after falling 9.1% in December. Price declines for finished consumer foods slowed to 0.4% in January from 1.4% in the preceding month. The index for finished goods less foods and energy (core inflation) increased 0.4% following a 0.2-percent rise a ...

Wholesale Prices Rise 0.8% in January Read More »

Creating a More Flexible Work Force

Leave a Comment / Economic Trends, Research & Analytics, Human Resources in Wholesale Distribution, Free, Operations, Strategy, Management, Subscriber Only /

More ideas on managing in a downturn come from DC Velocity, a magazine focused on logistics.
 
A recent article offered some ideas to build a more flexible work force to better respond to today's uncertain conditions.
 
Hiring older workers and interns is advice I hear often; many distributors are unaware that a lot of schools have internship programs. You can fill a vacant spot a lower price while training someone who could work for you post-graduation. Older workers are attractive because many are looking for part-time work and they are known to be reliable and productive. What's more, they require little training if they have worked for you or a similar company their whole lives.
 

Creating a More Flexible Work Force Read More »

Industrial Production Down 1.8% in January

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Industrial production fell 1.8 percent in January. At 101.3 percent of its 2002 average, output in January was 10.0 percent below its year-earlier level.
 
Production in the manufacturing sector dropped 2.5 percent with broad-based declines among its components. A plunge in motor vehicle and parts production that resulted from extended plant shutdowns subtracted more than 1.0 percentage point from the change in manufacturing production. The output of mines moved down 1.3 percent.
 
A swing to below-average temperatures contributed to an increase of 2.7 percent in the output of utilities.
 
The capacity utilization rate for total industry fell to 72.0 percent, a rate 8.9 percentage points below its average from 1972 to 2008.

Industrial Production Down 1.8% in January Read More »

Housing Starts Fall 16.8% From December

Leave a Comment / Economic Trends, Research & Analytics, Free, Top Distributor Sectors, Building Materials/Construction, News, Subscriber Only /

Privately-owned housing starts in January were at a seasonally adjusted annual rate of 466,000, 16.8% below December and 56.2% below January 2008, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
 
Single-family housing starts in January were at a rate of 347,000; this is 12.2% below the December figure of 395,000. The January rate for units in buildings with five units or more was 114,000.
 
By region, in the Northeast starts were down 73.7% from January 2008; in the Midwest they were down 66%; the South saw a drop of 53.7%, and the West declined 45.4%.
 
Permits
Privately-owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 521,000. This is 4.8% below ...

Housing Starts Fall 16.8% From December Read More »

Trends in Business Technology for 2009

Leave a Comment / Technology, Research & Analytics, Free, Subscriber Only /

A recent McKinsey Quarterly report (registration required) outlined changes it expects to see in business technology this year, including some of the findings MDM found in its distribution-specific report. Businesses in every industry are looking to automate more processes and use more productivity-based tools. E-commerce is becoming more common; however in the distribution world, more larger distributors than smaller have taken advantage of Web-based storefronts, catalog systems and electronic communication with supply chain partners.
 
Businesses are also looking to cut costs in IT, just as they ...

Trends in Business Technology for 2009 Read More »

Motion Industries Acquires Monroe Rubber & Plastic Supply

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Birmingham, AL-based Motion Industries, a subsidiary of Genuine Parts Co., has acquired Monroe Rubber & Plastic Supply, based near Detroit, MI, in Monroe, MI. Monroe is a distributor of hosing and related accessories, and specializes in hydraulic, industrial, metal hose and Teflon hose assemblies.
 
With the acquisition, Motion now has nine facilities focused on cutting and coupling hose assemblies.
 
Monroe President Joe Lark will continue providing leadership for the Monroe operation.
 
In a recent interview with MDM, Motion Industries President Bill Stevens addressed the distributor's acquisition and growth strategy:
 
"We certainly are committed first and foremost and always to being ...

Motion Industries Acquires Monroe Rubber & Plastic Supply Read More »

Industrial Manufacturing M&A Activity Falls Significantly in 2008

Leave a Comment / Economic Trends, Research & Analytics, Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, News, Subscriber Only /

Deal activity in the global industrial manufacturing industry declined significantly in 2008, according to the PricewaterhouseCoopers LLP report Assembling Value: Fourth-quarter 2008 Mergers and Acquisitions Analysis. Compared with 2007 M&A levels, overall deal volume decreased 32% and deal value fell 57% in 2008.
 
The pace of M&A activity during 2008 (141 deals), as measured by the number of deals with a disclosed value of at least $50 million, fell behind levels set in 2006 (169 deals) and 2007 (206 deals). Similarly, the number of deals announced during the fourth quarter of 2008 (11) is well behind the number of transactions announced during the fourth quarter of 2007 (71).
 
Total deal value reached $39 billion in 2008, less than half of the ...

Industrial Manufacturing M&A Activity Falls Significantly in 2008 Read More »

Genuine Parts Company Sales Up 2% in 2008

Leave a Comment / Paper Products & Packaging Distribution, Free, Operations, Companies, Top Distributor Sectors, Electrical, News, Subscriber Only /

Genuine Parts Company, Atlanta, GA, reported sales for 2008 were $11 billion, up 2% from 2007. Profit for the year was $475.4 million, a decrease of 6%.

By segment:

Motion Industries, the Industrial Group, saw a 5% increase for the year. EIS, the Electrical/Electronics Group, reported a 7% increase. The Automotive Group had a slight sales increase in 2008, and S.P. Richards, the Office Products Group, had a sales decrease of 2%.

In the fourth quarter, sales decreased 4% to $2.5 billion. Motion sales were unchanged; Automotive sales were down 6%; EIS sales were down 4%; and Office Products sales were down 5%.

The company reported a weakening in demand across all its business segments in the fourth quarter.

Genuine Parts Company is ...

Genuine Parts Company Sales Up 2% in 2008 Read More »

Watsco Sales Down in 2008

Leave a Comment / Plumbing Products & PVF Distribution, Free, Companies, Top Distributor Sectors, HVACR, News, Subscriber Only /

Watsco Inc., Coconut Grove, FL, distributor of air conditioning, heating and refrigeration products, reported sales for the year ended Dec. 31, 2008, were $1.7 billion, a 3% decrease from last year.
 
On a same-store basis, sales were down 10%, reflecting a 10% decline in sales of HVAC equipment (44% of sales), an 11% decline in sales in other HVAC products (43% of sales) and a 5% decline in sales of commercial refrigeration products (13% of sales).
 
Sales results also reflect an improving revenue mix of high-efficiency and environmentally-sensitive air conditioning and heating systems. From an end-market point of view, results include flat sales to the residential replacement market, a single-digit decline in the commercial market and a sharp decrease in sales to ...

Watsco Sales Down in 2008 Read More »

BlueLinx Reports Net Loss for 2008

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Atlanta, GA-based BlueLinx Holdings Inc., distributor of building products, reported a net loss of $25.1 million for the fourth quarter ended Jan. 3, 2009, compared with a net loss of $34.1 million a year ago.
 
For the full year ended Jan. 3, the distributor's net loss was $31.7 million, compared with a net loss of $27.9 million last year. Sales for the year were $2.9 billion, down 27.5% from a year ago.
 
"The housing and building products markets continued to be challenging during the quarter as a result of the historic slump in the housing industry," saidCEO George Judd. "During the quarter, and throughout the year, we remained focused on the areas we could control and continued to take measures to effectively ...

BlueLinx Reports Net Loss for 2008 Read More »

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