May 5, 2009 - Modern Distribution Management

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May 5, 2009

BlueLinx Sales Decline 43.2% In 1Q

BlueLinx Holdings Inc., Atlanta, GA, a distributor of building products in North America, reported sales decreased 43.2% to $407.1 million for the first quarter ended April 4, 2009. The company incurred a net loss of $60.7 million, compared with a net loss of $10.6 million for first quarter 2008.
 
The sales decline was mainly due to lower unit volumes in both structural and specialty products driven by a 51% decline in housing starts relative to year-ago levels.
 
BlueLinx preciously announced an agreement with Georgia-Pacific to terminate a supply agreement, which will result in Georgia-Pacific paying BlueLinx four quarterly cash payments of $4.7 million beginning on May 1, 2009. ...

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PT/MC Distributor Sales Growth Lower Than Anticipated In 2009

Revealing the profit challenges and opportunities in the power transmission/motion control industry, the 2009 PT Distributor Performance Report released by the Power Transmission Distributors Association indicates that the typical PT/MC distributor experienced an increase in gross margins but slower sales growth than anticipated at the beginning of the year. 
 
When asked in October 2007 to forecast sales for 2008, just over 50% of distribution firms anticipated growth in sales of between 5% and 14.9%.  The actual sales growth rate for the median PTDA distributor, was lower than anticipated at 1.7%.  As for gross margins, 80% forecasted growth in gross margins in the range of 0 to 1.9%.  According to the data collected for the PT Distributor ...

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Canadian Wholesale Sales Down Slightly In February

Canadian wholesale sales fell 0.6% to $41 billion in February, the sixth decline in seven months, according to Statistics Canada. Declining sales in the machinery and equipment trade group and the "other products" sector were major factors contributing to this decrease. In terms of the volume of sales, wholesale sales were flat.

Canadian wholesalers sell to both the domestic and international markets, and are active importers and exporters. The decline in sales reflected both lower export demand for Canadian goods, a significant part of which flows through wholesale markets, and weaker sales in .

In February, four out of seven sectors, accounting for over two-thirds of total wholesale sales, posted declines. The machinery and electronic ...

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Wolseley: Joint Venture Deal for Stock Building Supply

UK-based building materials distributor Wolseley plc has entered into a joint venture of Stock Building Supply with affiliates of U.S.-based The Gores Group LLC. Wolseley will retain a 49% equity interest. One hundred percent of the shares of Stock will be sold to a new joint venture company called NewCo.

Wolseley will hold two board seats in the joint venture. The distributor will continue to be called Stock Building Supply and will be led by the existing Stock management team, including Joe Appelmann as president.
 
A pre-packaged Chapter 11 reorganization plan will facilitate the sale, according to the distributor. This allows for all trade creditors to be paid, and according to Wolseley, will create a "substantially lower cost base." Obligations to ...

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Canadian Industrial Product Price Index Edges Up In March

The Industrial Product Price Index (IPPI) rose 0.3% in March compared with February, due to the depreciation of the Canadian dollar against the US dollar and higher prices for primary metals, according to Statistics Canada. The Raw Materials Price Index (RMPI) advanced 12.1% compared with February, pushed up by a strong increase in crude oil prices.
 
Motor vehicles and other transport equipment rose 0.9%, as a result of the depreciation of the Canadian dollar in relation to its US counterpart. Prices for primary metal products increased 1.3%, pushed up by copper and copper alloys in primary forms. These increases were offset in part by lower prices for metal fabricated products, petroleum and coal products as well as chemical products.
 
The ...

Canadian Industrial Product Price Index Edges Up In March Read More »

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