U.S. Construction Statistics: Second Quarter 2009
A look at housing starts, permits and spending trends during the second quarter and first half of 2009.
U.S. Construction Statistics: Second Quarter 2009 Read More »
August 2009
Beacon Roofing Supply Sales Fall 9.9% in 3Q
Peabody, MA-based Beacon Roofing Supply Inc. reported sales for the third quarter 2009 fell 9.9% to $463.6 million from the prior-year period. Profit for the third quarter was $17.2 million, down slightly from the prior-year period.
Residential roofing sales increased 10.4% while non-residential roofing and complementary product sales declined 25.6% and 25.1%, respectively. Residential roofing sales benefited from higher average year-over-year prices as well as from strong, although diminishing, re-roofing activity in markets that were affected by Hurricane Ike. Nonresidential sales continued to slow significantly due to adverse economic conditions. Complementary product sales were negatively impacted by both the slowdown in the economy and lower levels of new construction.
Sales ...
Beacon Roofing Supply Sales Fall 9.9% in 3Q Read More »
Applied Industrial 2009 Sales Down 8% to $1.9B
Industrial distributor Applied Industrial Technologies, Cleveland, OH, reported fiscal 2009 sales decreased 8% to $1.9 billion from the previous year. Profit decreased to $42.3 million, down from $95.5 million in 2008.
Sales for the fourth quarter fell 19.7% to $425.2 million. Applied recorded a net loss for the period of $8 million, compared with profit of $24.4 million in the prior-year period.
Looking ahead, Applied expects most of its markets to remain soft in its fiscal 2010, and that it will continue to see competitive pricing pressures. The distributor says it has yet to see an upturn in sales ...
Applied Industrial 2009 Sales Down 8% to $1.9B Read More »
Pharmaceutical Distributors Have Positive Quarter
The quarter ended June 30, 2009 provided positive earnings results for major pharmaceutical distributors Owens & Minor, McKesson Corp. and AmerisourceBergen.
Second quarter sales for Owens & Minor, Richmond, VA, were $2.01 billion, an increase of 13.7% over the same period a year ago. Profit was flat in the year over year comparison at $23.6 million.
Year-to-date, Owens & Minor sales were $3.96 billion, up 13.3% from the first half of 2008. Profit decreased 21.4% to $37.6 million, due in part to charges associated with exiting the direct-to-consumer business during the first quarter.
San Francisco, CA-based McKesson's fiscal year 2010 first quarter sales were flat with first quarter 2008 sales at $26.7 billion. Profit improved 23% to $288 million.
Sales for ...
Pharmaceutical Distributors Have Positive Quarter Read More »
Kaman Corp. Profit Up 31.9% in 2Q
Bloomfield, CT-based Kaman Corp. reported sales for the second quarter were $293.2 million, down 7.3% from second quarter 2008. Profit increased 31.9% to $9.4 million. Sales for the first half of 2009 were $587.3 million, down 2.5% from the first half of last year. Profit decreased 1.3% to $14.8 million.
Industrial Distribution second quarter segment sales were $156.0, a decrease of 23.3% from the prior year. The segment's sales reflect the continued difficult economic environment and resultant weak market conditions in addition to a very strong comparative period in 2008 which experienced a sales increase of 16.5%. For the six-month period, sales in the Industrial Distribution segment totaled $332.9 million, compared with $385.5 million in the year ago period. Organic growth ...
Kaman Corp. Profit Up 31.9% in 2Q Read More »
BlueLinx Holdings Sales Down 49% in Second Quarter
BlueLinx Holdings Inc., Atlanta, GA, a distributor of building products in North America, reported sales for the second quarter ended July 4, 2009, of $424 million, down 49% from the same period a year ago. Profit declined 91% to $0.6 million.
While we continue to operate in a weak demand environment, I am encouraged by signs indicating our industry may be stabilizing" said George Judd, president and CEO.
For the six months ended July 4, 2009, net loss totaled $60.0 million on sales of $831 million, compared with a net loss of $4.0 million on revenues of $1.55 billion a year ...
BlueLinx Holdings Sales Down 49% in Second Quarter Read More »
Chicago Tribune’s Look at Netflix Efficiencies
Here's a behind-the-scenes look from the Chicago Tribune at efficiencies in the online DVD service Netflix's operations - the author asks: How do consumers get their movies so quickly? While the article is short on a few details, a few pieces do stick out, namely the importance of finding the right employees and providing them the right benefits/pay to keep them around. And Netflix's use of the right technology to automate what humans would take much longer to do.
But most importantly, the article highlights Netflix's effective use of both talent and technology to get the job done, something that is not always easy, but continues to be more important as distributors deal with ...
Chicago Tribune’s Look at Netflix Efficiencies Read More »
Stock Building Supply Locations Moving Back Into Locals’ Hands
The divestiture of Stock Building Supply by UK-based distributor Wolseley plc has sparked a string of expansions for small, local building materials distributors who are picking up the locations left by Stock. Or former owners of those locations are buying them back.
Theformer Stock branches are being reinvented as local, independent distributors.
And in many cases the former employees of those Stock locations are being rehired by the new owners. In this article by the Valley Courier, a family that owns another long-time nearby building materials distributor purchased the former Stock property. The distributor plans to re-open the location as Alamosa Building Supply ...
Stock Building Supply Locations Moving Back Into Locals’ Hands Read More »
Avnet Fiscal Year End Sales Down 9.6%
Avnet, Inc., Tempe, AZ, reported sales of $16.2 billion for fiscal year 2009, down 9.6% over fiscal year 2008. The electronics distributor recorded a loss of $1.12 billion for the fiscal year, compared to profit of $499.1 million a year ago. Organic sales were down 15.6%.
For the fourth quarter, sales were $3.77 billion, down 19.5% over fourth quarter fiscal year 2008. Net loss was $30.9 million, compared to profit of $144.1 million for the prior year period. Organic sales declined 24.7%.
Electronics Marketing sales of $2.13 billion for the fourth quarter fiscal 2009 were down 22.2% year over year. Organic revenue decreased 27.3%.
Technology Solutions sales of $1.64 billion for the fourth quarter fiscal 2009 were down 15.8% year over year and down 20.9% organically. ...
Avnet Fiscal Year End Sales Down 9.6% Read More »
RBC Bearings 1Q Sales Decline 31%
RBC Bearings Inc., Oxford, CT, a manufacturer of highly-engineered precision plain, roller and ball bearings for the industrial, defense and aerospace industries, reported sales for the first quarter of fiscal year 2010 were $63.7 million, down 31% from the prior year period. Profit declined 52.6% to $5.1 million.
A drop of 46.3% in industrial sales due to the current economic climate was the primary reason for the overall sales declines. Aerospace and defense were less impacted and decreased by ...
RBC Bearings 1Q Sales Decline 31% Read More »
Construction Spending: Slight Uptick in June
Construction spending in June 2009 was at a seasonally adjusted annual rate of $965.7 billion, 0.3% above the revised May estimate. The June figure is 10.2% below the June 2008 estimate of $1,075.6 billion.
During the first six months of this year, construction spending amounted to $455.6 billion, 11.4% below the $514.4 billion for the same period in 2008.
Spending on private construction was at a seasonally adjusted annual rate of $643.9 billion, 0.1% below the revised May estimate. Residential construction was at a seasonally adjusted annual rate of $246.1 billion in June, 0.5% above the revised May estimate of $244.7 billion. Nonresidential construction was at a seasonally adjusted annual rate of $397.9 billion in June, 0.5% below May.
In June, the estimated seasonally ...
Construction Spending: Slight Uptick in June Read More »
Allied Motion Reports $12.1M Loss in 2Q
Allied Motion Technologies Inc., Denver, CO, reported second quarter sales of $13.9 million, down 41% from second quarter 2008. The manufacturer of motion control products recorded a loss of $12.1 million for the period, compared to profit of $1 million the prior year. Sales declined across all industry sectors.
During the six months ended June 30, the company had a net loss of $12.8million compared to profit of $1.9 million for the same six months last year. Sales were $29,235,000, down ...
Allied Motion Reports $12.1M Loss in 2Q Read More »
Emerson Sales Decline 22% in 3Q
Emerson, St. Louis, MO, reported sales for the third quarter ended June 30, were $5.1 billion, down 22% from the same period last year. Profit decreased 36.8% to $387 million. For the nine months ended June 30, sales were $15.6 billion, down 14% from the prior year period. Profit declined 29.4% to $1.2 billion.
Underlying sales in the quarter declined 19%, which excludes a 4% negative impact from currency exchange rates and a 1% positive impact from acquisitions. On a sequential basis, sales in the third quarter 2009 were essentially flat with the second quarter.
Process Management segment sales declined 13% for the quarter to $1.5 billion, including a 9% decline in underlying sales, a negative 7% currency impact, and a positive 3% impact from the Roxar acquisition. Underlying ...
Emerson Sales Decline 22% in 3Q Read More »
Global Manufacturing Conditions Stabilize in July
Global operating conditions stabilized in July, following a sustained period of weakness, according to the JPMorgan Global Manufacturing PMI, which stood at 50.0. PMIs remained above 50.0 in China, India and Turkey and rose back above this level in Japan and the UK for the first time in 17 and 16 months respectively.
The Global Manufacturing Output Index rose to an 18-month high in July. At a twenty-month high of 53.3, the Global Manufacturing New Orders Index pointed to an increase in new work received for the first time since March 2008. International trade volumes rose slightly in July, following ten months of sustained decline. "Global manufacturing started Q3 2009 on a strong footing," said David Hensley, director of Global Economics Coordination at JPMorgan. "The PMI indicates ...
Global Manufacturing Conditions Stabilize in July Read More »
Manufacturing Contracts in July
Manufacturing contracted in July, according to the latest Manufacturing ISM Report on Business. However, the decline in manufacturing was slower in July when compared to June, as the more leading components of the PMI - the New Orders and Production Indexes - rose significantly above 50%, thus setting an expectation for future growth in the sector.
The Employment and Inventories Indexes are still contracting, but the rate is slowing and they are moving in the right direction, the report said. The New Export Orders Index shows growth following nine consecutive months of decline, suggesting that the global economy is recovering.
Six of the 18 manufacturing industries reported growth in July. These industries - listed in order - are: Nonmetallic Mineral Products; Paper ...
Manufacturing Contracts in July Read More »
Distributor Stays Put After Town Recognizes Its Value
Here's a short but interesting article on a California floor products distributor who was about to move elsewhere when a town, recognizing the value the company brought to the community, made it more affordable to stay put.
As a result of the town's moves, the distributor was able to push forward on a DC expansion as it works to consolidate its warehousing and logistics operations. ...
Distributor Stays Put After Town Recognizes Its Value Read More »
NetSuite Sales Up 10% in Second Quarter
NetSuite Inc., San Mateo, CA, an on-demand, integrated business management software suites, reported sales for the second quarter 2009 were $40.3 million, up 10% over the second quarter of 2008. The company recorded a loss of $5.0 million for the period, compared to a loss of $3.1 million a year ago.
Quarterly revenue from the Americas was $32.5 million, while revenue from international regions was $7.8 ...
NetSuite Sales Up 10% in Second Quarter Read More »
Barnes Group Sales Fall 33% in 2Q
Barnes Group Inc., Bristol, CT, a diversified global manufacturer and logistical services company, reported sales for the second quarter 2009 were $255.2 million, down 33% from second quarter 2008. Profit declined 68.8% to $10.4 million.
For the six months ended June 30, sales were $517.4 million, down 32.2% from the prior year period. Profit declined 66.8% to $21.9 million.
"The continued economic weakness throughout the second quarter had a substantial impact on our businesses, particularly our transportation and industrial manufacturing businesses," said Gregory F. Milzcik, president and CEO. "As we have done since the beginning of the economic downturn, we continue to focus on managing our business prudently by adjusting our cost structure, driving increased productivity in our ...
Barnes Group Sales Fall 33% in 2Q Read More »
European Commission Clears ERIKS Deal
The European Commission has granted clearance for the proposed acquisition of Dutch distributor ERIKS by SHV Alkmaar B.V., a subsidiary of SHV Holdings N.V. The company would buy ERIKS for $48 a share, according to the latest offer announcement.
ERIKS is a distributor of power transmission and related products. It had sales of EUR $1.1 billion in 2008 with 5,138 employees. More information at www.eriks.com.
SHV is a privately held holding company of a conglomerate active in LPG trade and distribution, cash and carry wholesale, heavy lifting and transport activities, private equity, investing in the exploration, development and production of oil and gas, and renewable energy. It is in 45 companies and employs 38,000 people. More ...
European Commission Clears ERIKS Deal Read More »
Purvis Industries Acquires TX-based Bearing Service and Supply
Purvis Industries, Dallas, TX, has acquired Bearing Service and Supply, San Angelo, TX, a distributor of power transmission, fluid connectors and motion control products.
Bearing Service and Supply focuses on the agricultural, industrial and alternative energy customers in the San Angelo and West Texas region.
Purvis, founded in 1945 in Waco, TX, is a large regional independent power transmission, electrical control and belting services distributor, with 41 locations in seven states. Purvis goes to market through six units: American Keyed and Custom Shaft, CapCorp Belting, National Mechanical Power Systems, Purvis Bearing Services, Triad Industrial Automation, and U.S. Conveying Systems & ...
Purvis Industries Acquires TX-based Bearing Service and Supply Read More »
