6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
May U.S. machine tool consumption totaled $140.78 million, according to The Association For Manufacturing Technology and the American Machine Tool Distributors' Association. This total, as reported by companies participating in the USMTC program, was down 0.8% from April and down 36.4% from the total of $221.25 million reported for May 2002. With a year-to-date total of $697.95 million, 2003 is down 24.4% compared to the same period in 2002.
The Fastenal Co., Winona, MN, reported net sales for the six-month period ended Jun. 30, 2003 of $485.0 million, an increase of 8.2% over net sales of $448.1 million in the first six months of 2002. The first six months of 2002 included net sales of $11.1 million from the Company's DIY Business, which was disposed of in October 2002.
Adjusting for the DIY Business sale, growth in net sales of the remaining business was 11.0% from 2002 to 2003. Net earnings increased from $39.5 million in the first six months of 2002 to $41.0 million in the first six months of 2003, an increase of 3.6%. During the first six months and the second quarter of 2003, Fastenal opened 71 and 35 new sites, respectively, bringing the total number of sites to 1,240. There were 4,690 site employees as of Jun. 30, 2003, a decrease of 1.1% from Dec. 31, 2002.
MSC Industrial Direct Co., Melville, NY, reported net sales for its third fiscal quarter ended May 31, 2003 were $215.6 million, an increase of 3.3% over net sales of $208.6 million in the third quarter of fiscal 2002. Fiscal 2003 third quarter net income increased 19.1% to $13.2 million, or $0.19 per diluted share, versus net income of $11.1 million, or $0.15 per diluted share in the year ago period. Net sales for the first nine months of fiscal 2003 rose 7.4% to $635.9 million, compared to net sales of $592.2 million in the first nine months of last year. Net income for the nine-month period was $38.4 million, or $0.57 per diluted share, an increase of 39.8% over net income of $27.5 million, or $0.39 per diluted share a year ago.
WW Grainger, Chicago, IL, reported lower sales but higher earnings for the second quarter ended Jun. 30, 2003. Net earnings were $56.0 million, an increase of 3% versus the prior year. The 2002 quarter included a $5.8 million expense related to severance and other costs. Sales in the 2003 second quarter were $1,173 million, down 2%, versus $1,195 million for the prior year. Lab Safety posted a 7% increase in sales. Excluding revenues from the Gempler's business acquired on April 14, 2003, sales were down 2%. During the quarter, the company opened two additional distribution centers in Memphis, TN, and Kansas City, MO, representing the fifth and sixth centers in its redesigned logistics network, a key strategic initiative.
Sales at Barnes Distribution were $104.7 million for its second quarter ended Jun. 30, 2003, up 41% from $74.3 million in the quarter ended Jun. 30, 2002. Kar Products, which Barnes Group purchased on February 6, 2003, contributed $31.0 million of sales in the most recent quarter. Barnes Distribution generated operating profit of $4.9 million in the second quarter of 2003, up 42% from operating profit of $3.5 million in the second quarter of 2002. The improvement in operating profit was driven primarily by incremental operating profit contributed by Kar Products. Excluding Kar, sales at Barnes Distribution were essentially flat versus a year ago.
Danaher Corporation, Washington, DC, announced net earnings for its second quarter ended Jun. 27, 2003 were $125.1 million, 21% above the corresponding 2002 period earnings of $103.7 million. Sales for the 2003 second quarter were $1,299.4 million, 13% higher than the $1,146.3 million for the quarter ended Jun. 28, 2002. For the six month