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MSC Industrial Direct Co., Melville, NY, expects to report revenues of approximately $216 million for the fiscal 2003 third quarter. Gross margins for the fiscal 2003 third quarter are expected to be approximately 45%, in line with the company's previous guidance.
Expected revenues for the third quarter of fiscal 2003 represent growth over the year ago period of approximately 3%. The company will report its results for the fiscal 2003 third quarter before the market opens on July 15, 2003.
The Timken Company, Canton, OH, intends to sell assets from three of its U.S.-based regional service centers to one of its joint ventures, CoLinx, LLC. The closings and subsequent physical transfer of assets from Timken's Chicago, Dallas and Columbus, OH, facilities to CoLinx's Crossville, TN, distribution center is expected to be complete by Nov. 1, 2003. The current service levels and customer service activities will continue uninterrupted during the phased implementation.
In an effort to reduce its belt manufacturing costs in North America, Gates Corporation, Denver, CO, is restructuring its facilities and considering closing the Elizabethtown, KY, belt manufacturing plant. Production from the plant would be absorbed into other North American belt production facilities. Gates Elizabethtown Polyflex plant will not be affected. A final decision on the plant's future will not be made until the union representatives of USWA Local Union # 780 have been allowed the opportunity to discuss the matter and provide comment.
Applied Industrial Technologies, Cleveland, OH, expects sales for its fourth quarter and fiscal 2003 ended Jun. 30, to come in at the high end of previously provided guidance of $365 million to $375 million ﾖ a level essentially flat with the comparable period last year, but slightly ahead of the third quarter. Weaker than anticipated U.S. sales have been offset by a strong performance of the company's Canadian business. Applied expects earnings for its fourth quarter to be significantly higher than guidance provided in its April 16 news release, primarily because of non-operating gains.
Management currently expects fourth quarter earnings to be in the range of $0.37 to $0.43 per share ($1.00 to $1.05 per share for fiscal 2003 as a whole) when year-end financial results are reported on August 8. Actual earnings within that range are contingent on results from the company's customary year-end physical inventory adjustment and year-end closing process. Applied's fourth quarter results will include a one-time pre-tax gain of $2.2 million from settlement of a property insurance claim. In addition, fourth quarter SD&A will include approximately $650,000 in pre-tax gains on the sale of surplus real estate. These two non-operating factors will account for about $0.10 per share of reported fourth quarter earnings.
Economic activity in the manufacturing sector failed to grow in June, while the overall economy grew for the 20th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Businessﾮ. ISM's PMI for June was 49.8%, an increase of 0.4% when compared to 49.4% in May. ISM's Backlog of Orders Index indicates that order backlogs were unchanged in June. Manufacturing Employment continued to decline in June as the index remained below the breakeven point (an index of 50 percent) for the 33rd consecutive month. ISM's Prices Index indicates that manufacturers experienced higher prices for the 16th consecutive month. New Export Orders grew in June for the 18th consecutive month. June's Imports Index grew for the eighth consecutive month.