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As part of its ongoing effort to divest non-core assets, Textron Inc., Providence, RI, has completed the sale of its OmniQuip business unit to JLG Industries, Inc. for $100 million. OmniQuip, based in Port Washington, WI, is a manufacturer of telescopic material handlers for the light construction industry. See full article.
Purchasing Managers Index increased 2% to 51.8 in July, up from the 49.8 reading in June. Tracked by the Institute for Supply Management, a reading above 50 indicates an expanding economy. New orders for manufactured goods in June increased $5.5 billion or 1.7% to $326.0 billion, the Commerce Department reported. This followed a 0.3% May increase. Year to date, new orders for 2003 were 2.6% above the same period a year ago. See full article.
Kennametal Inc., Latrobe, PA, reported fiscal 2003 fourth quarter sales of $463.8 million, 15% above the prior year, driven by the Widia acquisition. Free operating cash flow was $55 million versus $43 million in fiscal 2002. J&L Industrial Supply sales for fiscal 2003 were $196.2 million, down 13.2% from $226.0 million the year before. J&L fourth quarter sales were at $48.2 million, a decrease of 8% from last year. Full Service Supply sales for fiscal 2003 were $120.4 million, down 21.3% from $152.9 million the prior year. FSS fourth quarter sales were $28.4 million, down 28.3% from sales of $39.6 million in the same quarter of 2002.
Applied Industrial Technologies, Cleveland, OH, reported net sales for its fiscal 2003 year ended Jun. 30, 2003, were up 1.2% to $1,464.4 million, from $1,446.6 million in the previous year. Net income for 2003 was $19.8 million, up from $2.7 million in the previous year. Net sales for its fourth quarter were $372.4 million, up slightly from $369.5 million in the same period a year ago. Net income for the quarter was $7.7 million, up from $4.2 million in its 2002 fourth quarter. Full-year earnings in 2002 included a charge of $12.1 million associated with the company's fluid power business. "While our domestic core business continues to be weak, we had very positive improvements in our Canadian operations and in our fluid power business," said Applied Chairman and CEO David Pugh.
Industrial Distribution Group, Inc. reported second quarter 2003 revenues were down 4.9% to $121.1 million, compared to $127.4 million for the comparable period in 2002. The company was able to achieve higher net income for the second quarter of 2003 of $543,000 compared to net income of $428,000 for the comparable period of the prior year.
For the six months ended Jun. 30, 2003, revenues were down 1.3% to $244.1 million, compared to $247.4 million for the comparable period of the prior year. The company's 2003 year-to-date net income was $803,000 compared to a net loss for the first six months of 2002 of $49.8 million.
Traditional MROP sales declined $7.8 million or 11.9% during the second quarter over the prior year quarter, due to continued weakness in the manufacturing sector. Revenues from Flexible Procurement Solutions, IDG's services-based supply offerings including integrated supply, comprised 52.3% of IDG's total sales for the second quarter of 2003 compared to 48.6% of IDG's total sales for the comparable period in 2002. Year-to-date, FPS revenues increased