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The North American steelmaker landscape is changing yet again as a key U.S. player is being acquired by a European producer to form the world's largest steel company, with projected revenues of $30 billion and annual production capacity of 70 million tons. It marks a global shift for International Steel Group, which has been buying the assets of troubled U.S. steelmakers the past several years. Many U.S. industrial distributors have been buoyed by a booming steel industry the past year as global demand has been blistering.
Snap-on Incorporated, Kenosha, WI, reported net sales increased to $550.9 million in the third quarter of 2004 compared to $525.6 million in the prior year quarter, up $25.3 million or 4.8%. Higher sales of vehicle service equipment worldwide and a slight increase in sales of tools in the served commercial marketplace in Europe and Asia were partially offset by a decline in sales of hand and power tools used in industrial applications in North America.
Kennametal, Inc., Latrobe, PA, reported sales for its first quarter ended Sept. 30 were $531.4 million, up 19% from 444.6 million in the same period a year ago. Net income for the quarter was $22.7 million, up 61% from $8.8 million the year before. J& L Industrial Supply reported sales of $61.4 million, up 28% from $48.1 million in the first fiscal quarter of 2003. Operating income for J& L was $5.7 million, up 111% from $2.7 million in the same quarter last year. Full Service Supply, the company's integrated supply unit, reported first-quarter income of $36.2 million, up 14% from $31.7 million in the same quarter last year. Operating income for FSS was $120,000, versus a $281,000 loss in the same quarter last year.
August U.S. machine tool consumption was up 6.4% to $225.52 million from July and up 54.2% from the total of $146.27 million reported for August 2003, according to the Association For Manufacturing Technology and the American Machine Tool Distributors' Association. With a year-to-date total of $1,778.59 million, 2004 is up 38.4% compared with 2003.
Applied Industrial Technologies, Cleveland, OH, reported net sales for its 2005 fiscal first quarter increased 14% to $413.1 million from $361.1 million in the comparable period a year ago. Net income for the quarter ended Sept. 30, 2004 increased 170% to $13.0 million compared to $4.8 million last year.
Motion Industries Inc., Birmingham, AL, reported third quarter net sales of $636.7 million, a 14.3% increase over net sales of $557.0 million during the third quarter of last year. Operating profit for the quarter was $40.9 million, up 19.6% from $34.2 million during the third quarter last year.
W.W. Grainger, Chicago, IL, reported sales for the third quarter ended Sept. 30, 2004 were $1.3 billion, up 8% versus the prior year's third quarter. Net earnings were up 19% to $68 million. Sales for the nine months ended Sept. 30, were $3.8 billion, up 8% versus the first nine months of 2003. Net earnings increased 19% to $197 million versus $165 million in 2003.