The 2020 Mid-Year Economic Update_long

Day: July 23, 2009

WESCO Sales Fall 27% in Second Quarter

Electrical MRO and construction materials distributor WESCO International Inc., Pittsburgh, PA, reported sales for the second quarter 2009 were $1.2 billion, compared with $1.5 billion in the second quarter 2008, a decrease of 27%.

Profit for the second quarter was $26.4 million, about half that of the comparable quarter 2008.

"We are taking quick and decisive actions to manage the company through the global economic downturn," said John J. Engel, senior vice president and COO. "WESCO is currently facing weaker end market demand across most of our served markets. We continue to focus our energies on a series of sales and cost reduction programs and LEAN productivity initiatives to efficiently serve our customers and take market share in this challenging environment."


MDM News Digest 3914

Atlanta, GA-based Genuine Parts Company reported sales for the second quarter ended June 30, 2009, were $2.5 billion, down 12% from the second quarter 2008. Profit for the quarter was $103.6 million, a decrease of 22%.For the six months ended June 30, 2009, sales were $5 billion, down 11% from the same period in 2008. Profit was $192.8 million, a decrease of 25%. More

W.W. Grainger, Chicago, IL, reported second quarter sales of $1.5 billion, down 13% from the second quarter 2008. Profit for the quarter fell 18% to $92 million.Daily sales decreased 15% in April, 10% in May and 13% in June.

3M Acquires ACE Product Line

3M has acquired the ACE-branded elastic bandage and supports product lines and related brands, and thermometer product line from BD (Becton, Dickinson and Company). Terms of the transaction were not disclosed.

"ACE is a great extension of our consumer products portfolio," said Dr. Gabi Sabongi, vice president, research and development, and new business ventures of 3M Consumer and Office Business. "ACE brings to our company an iconic brand with admirable consumer loyalty. ACE and its related brands also broaden our channels for consumer products, including the sporting goods ...

Columbus McKinnon Posts $2.4M Loss in First Quarter

Columbus McKinnon Corp., Amherst, NY, reported sales for the first quarter ended June 30, 2009, were $119.0 million, down 21.3% from the prior-year same period. The manufacturer of material handling products recorded a loss of $2.4 million for the period, compared to profit of $9.7 million the prior year.

Restructuring charges of $5.8 million, associated with a broad reorganization combined with the consolidation of the North American hoist and rigging sales and marketing functions, were recorded during the first quarter of fiscal 2010.

"As expected, our first quarter sales reflect the full impact of the decline in industrial activity around the world," said Timothy T. Tevens, president and CEO. "We are reducing our manufacturing footprint, improving efficiencies and implementing a ...

Myers Industries Records $1.4M Loss in 2Q

Myers Industries, Inc., Akron, OH, reported sales for the second quarter were $173.2 million, a decrease if 19% from second quarter 2008. The company recorded a loss of $1.4 million for the period, compared to profit of $2.9 million the prior year.

Weak end markets and demand continued to result in volume declines across segments. Customers maintained cautious spending - further reducing inventory levels, purchasing on an as-needed basis, deferring major capital investments and conserving cash. In the Distribution segment, sales of supplies and equipment remained weak due to continued slow demand for both tire and vehicle service.

For the six-months ended June 30, 2009, sales were $363.3 million, down 21.7% from the same period a year ago. Profit decreased 72% to $3.7 ...

Cooper Industries Second-Quarter Sales Fall 26%

Manufacturer Cooper Industries, Houston, TX, reported second quarter 2009 sales were down 26% to $1.27 billion, compared with $1.72 billion in the prior-year period. Profit was $89.3 million, down from $161.9 million reported in the 2008 second quarter.

In the first six months of 2009, sales were $2.53 billion, a 23% decrease from the prior-year period. Profit was $189.4 million, down from $315.3 million in the prior-year first six months.

"In the second quarter, while our book-to-bill ratio stabilized, we did not experience the normal seasonal increase in revenues. As a result, our revenue for the quarter was at the low end of our forecast; however, our intense cost management across the company allowed us to deliver earnings per share at the top end of the forecast," said Cooper ...

Watsco Second Quarter Sales Down 21%

Watsco, Inc., Coconut Grove, FL, an independent distributor of air conditioning, heating and refrigeration products, reported sales for the second quarter 2009 were $405 million, down 21% from second quarter 2008. Profit declined 37.5% to $16.3 million.

For the first six months, sales were $696 million, a 22% decline over 2008. Profit decreased 55.2% to $15.1 million.

Lower demand due to economic conditions, new housing declines and a late start to the cooling season offset gains from a richer mix of high-efficiency air conditioning systems.

"We are pleased to see the continued trend toward high-efficiency and environmentally-friendly air conditioning systems, especially in this current economic backdrop," said Albert H. Nahmad, president and CEO. "We experienced higher unit ...

Reliance Steel Hit by Drop in Carbon Steel Prices

Reliance Steel & Aluminum Co., Los Angeles, CA, reported its first quarterly net loss since becoming a public company in 1994. In the second quarter, Reliance had a net loss of $5.8 million, compared with profit of $156.6 million in the 2008 quarter, and $20.1 million for the first quarter of 2009.

Sales in the second quarter were $1.2 billion, down 41% from the prior-year period, and down 20% from the first quarter.

(The 2009 second quarter financial results include in cost of sales a pre-tax LIFO income amount of $75 million, compared with a pre-tax LIFO expense amount of $40 million for the 2008 second quarter, and $75 million of LIFO income for the 2009 first quarter.)

"The 2009 second quarter was the most difficult operating environment we have ever experienced at our ...

Diversified Manufacturer 3M Sales Down 15.1% in 2Q

Diversified manufacturer 3M, St. Paul, MN, reported second-quarter sales were $5.7 billion, a decline of 15.1% from the same period a year ago. Profit declined 17.1% to $783 million.

Local-currency sales including acquisitions decreased 9.4%, currency translation effects reduced sales by 5.5% and divestitures reduced sales by 0.2%.

Year-to-date, sales were $10.8 billion, down 18.1%. Profit decreased 32.7% to $1.3 billion.

Industrial and Transportation
Second-quarter sales for the Industrial and Transportation segment were $1.7 billion, down 15.3% year-on-year in local currency. Acquisitions contributed a 3.3% benefit; currency impacts reduced sales by 5.4%.

Sales improved by 9.2% when compared to first quarter of 2009.

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Airgas Sales Declines 12% in 1Q

Airgas, Inc., Radnor, PA, a U.S. distributor of industrial, medical, and specialty gases, and welding, safety, and related products, reported sales for the first quarter ended June 30, 2009, were $1.0 billion, down 12% from the prior year. Profit declined 20.4% to $54.8 million.

Same-store sales declined 17%, with hardgoods down 27% and gas and rent down 10%. Acquisitions contributed 5% sales growth in the quarter.

"Sales were consistently at the low end of our expectations throughout the quarter, and demand continues to be weak across most customer segments," CEO Peter McCausland said. "Manufacturing has shown the deepest declines, analytical and utilities have shown some resilience, and our medical sales posted positive ...