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Posts By MDM Staff
Top Distributor Sectors
Air Liquide Expands in Serbia
Global industrial gases company Air Liquide has increased its presence in Southeastern Europe by creating a subsidiary in Serbia.
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Over the past three years, Serbia has been one of Europe's fastest growing economies with an average annual GDP growth of 7.3%. It is the most industrialized country in ex-Yugoslavia. Its major growth drivers are telecommunications, construction and transport, with a recent upswing of industrial production. Its strategic position allows good access to transportation corridors between Western and South-Eastern Europe and Turkey.


The move is part of Air Liquide's goal to establish a stronger presence in the region. Since the end of last year, Air Liquide has operated an Air Separation Unit in Romania and is supplying cylinder and ...
Top Distributor Sectors
Construction Spending Down Slightly in June
Construction spending in June 2007 was estimated at a seasonally adjusted annual rate of $1,175.4 billion, 0.3% below the revised May estimate of $1,178.4 billion. The June figure is 2.4% below the June 2006 estimate of $1,204.0 billion.
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During the first six months of the year, construction spending amounted to $550 billion, 3.5% below the $570.1 billion for the same period in 2006.
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Spending on private construction was at a seasonally adjusted annual rate of $890.9 billion, 0.3% below the revised May estimate. Residential construction was at a seasonally adjusted annual rate of $544.4 billion in June, 0.7% below the revised May estimate of $548.3 billion. Nonresidential construction was at a rate of $346.6 billion in June, 0.3% above the revised May ...
Top Distributor Sectors
Industrial Distribution Group Considers Strategic Alternatives
Industrial Distribution Group, Inc. announced it has formed a committee of independent directors to review strategic alternatives for the industrial distributor, which has about $500 million in annual sales. It also announced it expects revenue for the second quarter to be $132.6 million, down from last year.
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In addition, the company preannounced announced a cost-reduction program and related changes to its executive team.
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The independent committee will be led by the company's non-executive chairman of the board, Richard M. Seigel.
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IDG needs to consistently grow revenues at a higher level while also seeking a strategic way to reduce its cost profile, both of which have been a source of concern," Seigel said. "It is imperative that we take ...
Top Distributor Sectors
DXP Enterprises Sales Up 22.3% in 2Q
DXP Enterprises, Inc. reported profit of $3.4 million for the second quarter ending June 30, 2007, compared with profit of $2.9 million in the second quarter 2006.
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Sales increased 22.3% to $85.3 million from $69.8 million in the prior-year period. Sales by the businesses acquired in 2006 and 2007 accounted for $13.3 million of the sales increase. Excluding sales by the acquired businesses, sales for the second quarter of 2007 increased 3.2% from the prior-year period.
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Year-to-date profit for the six months ended June 30, 2007, increased 31% to $7.1 million. Sales increased 27.7% to $169 million from $132.3 million for the first six months of 2006. Sales by the businesses acquired in 2006 and 2007 accounted for $23.5 million of the sales increase. Excluding ...
Top Distributor Sectors
Kaman Opens Four Branches
Kaman Industrial Technologies, Windsor, CT, distributor of bearings, power transmission, electrical, and motion control products, has opened new branches in Lathrop, CA, Bradenton and Port St. Lucie, FL, and Danville, IL.
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Kaman Industrial Technologies is a subsidiary of Kaman Corp. of Bloomfield, CT., which conducts business in the aerospace, industrial distribution and music markets. Kaman Industrial Technologies has 200 ...
Top Distributor Sectors
SKF to Buy Bearings Supplier
SKF has agreed to buy S2M, a subsidiary of British company Edwards Limited, a manufacturer of magnetic bearings, for 55 million euros (US$75.04 million).
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S2M has annual sales of 40 million euros (US$54.5 million). It is headquartered in Vernon, France.
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S2M focuses mainly on the European markets, with end-user segments in vacuum pumps, small air and gas compressors, turbo expanders and compressors in the oil and gas industry.
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S2M will be part of SKF's Industrial ...
Subscriber Only
Advance GDP Estimate: Growth of 3.4% in 2Q
Real gross domestic product -the output of goods and services produced by labor and property in the U.S. -increased at an annual rate of 3.4% in the second quarter of 2007, according to advance estimates released by the Bureau of Economic Analysis.&nbsp ; In the first quarter, real GDP increased 0.6%.
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The Bureau emphasized that the second-quarter advance" estimates are based on source data that are incomplete or subject to further revision by the source.&nbsp ; The second-quarter "preliminary" estimates, based on more comprehensive data, will be released on Aug. 30, ...
Finance
Valley National Gases Acquires Mitchell Industrial
Valley National Gases Inc., Washington, PA, has acquired Mitchell Industrial Supply Inc, an industrial gases and welding supply distributor in Elkhart, IN. Mitchell serves customers throughout Northern Indiana and Southwest Michigan.
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Valley National Gases is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies, propane and fire protection equipment. Valley National Gases operates 75 locations in 14 states, with eight production and distribution centers in the eastern ...
Finance
RBC Bearings Acquires Coastal Bearing Services
RBC Bearings Inc., Oxford, CT, an international manufacturer of precision plain, roller and ball bearings, has acquired CBS/Coastal Bearing Services, Houston, TX, for $3.7 million in cash.
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CBS manufactures, inspects and refurbishes large bearings for the oil and mining industries, as well as other general industrial applications with sizes ranging up to 124 inches in diameter. CBS has sales of $3.1 million for the year ended Dec. 31, 2006.


RBC said that CBS represents another step in our strategy to expand our presence in the large bearing segment."

RBC operates 17 manufacturing facilities in four ...
Finance
Wolseley Appoints VP of Acquisitions for NA
UK-based Wolseley plc has appointed Dan Parr to vice president of Acquisitions and Business Integration for Wolseley's North American Division, comprised of Ferguson, Stock Building Supply and Wolseley Canada.
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He will oversee acquisitions, and coordinate business integration and installation into Wolseley's systems and processes.

Parr began his career with Ferguson in 1988 as an Internal Auditor. He was promoted two years later to internal audit manager and transferred to Atlanta, Ga., in 1993 to become the integration manager for our Hub, Inc. acquisition. Parr returned to headquarters in 1995 as manager of Acquisitions and Installations, and was promoted to director in 2003 and to vice president in ...
Top Distributor Sectors
Europe Offsets Fall in Saint-Gobain U.S. Sales
Saint-Gobain overall sales were up 6% in the first half of 2007 to US$29.8 billion (21.7 billion euros).
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All the group's sectors saw a rise in sales, with organic growth overall at 6.9%.
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Construction markets in Europe, bolstered by the impact of regulations promoting energy efficiency, offset the downturn in the U.S. housing market. Sales were strong in Asia and emerging countries (organic growth of 19%).
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Construction Products posted a 4.1% organic growth rate. About three-fourths of sales in this sector come from Europe and emerging countries. Only a quarter is in the U.S.
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The Building Distribution sector posted a 13.3% rise in sales, buoyed by acquisitions, and organic growth of 8.7%. Strong sales were seen in France, ...
Top Distributor Sectors
Huttig Building Products Sales Down 20% YTD
Huttig Building Products, Inc., distributor of millwork, building materials and wood products, reported sales in the second quarter were $239.6 million, down 19% from the prior-year period.
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Sales to national accounts, or 35% of sales in the second quarter, declined by only 17%.
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Jon P. Vrabely, president and CEO, said: This quarter represents the first profitable quarter for Huttig since a year ago, just before the significant downturn in the housing market."


Sales for the first six months of 2007 were $461.9 million, a 20% decrease over the prior-year period. This decrease is primarily attributable to the 27% drop in housing ...
Top Distributor Sectors
Kennametal Sales Up 6% in 2007
Kennametal Inc., Latrobe, PA, reported sales in fiscal 2007 were $2.4 billion, up 6% on an organic basis. The growth was partially offset by the net impact of acquisitions and divestitures of 7%.
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In 2007, Kennametal expanded its advanced materials segments with the acquisitions of the Sintec Group and the Camco Group, as well as Purity Metal Holdings Inc. Kennametal also added to its metalworking segments with Federal Signal Corporation's cutting tool business, and completing the purchase of the company's Spanish affiliate, Kenci S.A.
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Sales in the fourth quarter were $657 million, up 6% on an organic basis. In the fourth quarter, Metalworking Solutions & Services Group sales were higher by 15% overall, with 5% organic growth. Europe sales were up 9%; Asia ...
Top Distributor Sectors
Praxair Sales Grow 12% in 2Q
Praxair, Inc., Danbury, CT, reported sales in the second quarter 2007 increased to $2.3 billion, 12% above the same period a year ago. Sales growth was led by significant new business coming on-stream in the energy sector and new business in Asia and South America.
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Profit was up 18% to $291 million.
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In North America, second-quarter sales reached $1.3 billion, 12% above the prior-year quarter. Sales growth came primarily from higher sales to energy and general manufacturing markets, followed by electronics, healthcare and food and beverage.
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In Europe, sales in the quarter of $336 million grew 14%, and increased 6% excluding currency effects, as compared to the prior year. Underlying sales growth was broad-based across Europe and most major end ...
Top Distributor Sectors
Rockwell Automation Sales Grow 9% in 3Q
Rockwell Automation, Inc., Milwaukee, WI, reported sales in the third quarter 2007 were $1.28 billion, up 9% from the same period in 2006. Profit was $164.2 million, compared with profit of $149 million last year.
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International sales increased 13%, excluding the effect of currency translation, with continued strength in Europe and Latin America, and improved performance in Asia Pacific and Canada. From an end-market perspective, sales growth in consumer industries outpaced the growth in resource-based industries.
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Rockwell expects a gradually expanding global industrial economy across most end markets through the remainder of the year in into fiscal 2008.
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The Control Products & Solutions segment sales were $698.1 million, an increase of 8%. ...
Top Distributor Sectors
Report: Rockford Products to File for Bankruptcy
The Rockford Register Star has reported that Rockford Products, Rockford, IL, a manufacturer of cold-formed components, fasteners and other related products, will file for Ch 11 bankruptcy protection to keep it running until a buyer is found.
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A Ch. 11 bankruptcy allows the supplier to restructure its debt. In 1987 employees bought Rockford, which was then near-bankrupt, from Rexnord Inc., according to the paper. The company had $101 million in sales in 2006 and has been buried under debt" since the buyout.
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Rockford's president told the Register Star that growing pension liabilities and the loss of key customers due to the slow automotive and housing markets sparked the decision to file ...
Sales & Marketing
Why Sales Compensation Plans Fail

With the recent attention in this industry given to strategic pricing, distributors who change their pricing structures must consider developing new sales compensation plans that reward improved profits. Before attempting a change, consider all appropriate structures and take steps to avoid implementation pitfalls.

According to a recent study, U.S. companies are markedly more satisfied with their sales compensation programs today than they were two years ago." Having spent the last 10 years designing and implementing sales compensation programs for hundreds of firms, I found this intriguing.

Upon further reading, I discovered that "markedly more satisfied" meant that 59 percent of companies surveyed in 2006 were satisfied compared to 34 percent in 2004. In other ...

Subscriber Only
Inflation by Commodity Group – Second Quarter 2007

These 16 select product groups provide a snapshot of inflation trends in industrial and construction channels. Second quarter 2006 is compared with second quarter 2007, and the first quarter 2006 with the second quarter 2007.

Metals & Metal Products
Plumbing Fixtures & Fittings
Fasteners
Hardware
Hand & Edge Tools

Chemicals & Allied Products
Adhesives & Sealants
Industrial Gases

Machinery & Equipment
Mechanical Power Transmission Equipment
Pumps, Compressors & Equipment
Electrical Machinery & Equipment
Ball and Roller Bearings
Metal Valves, Except Fluid Power
Industrial Material Handling Equipment
Fluid Power Equipment<br ...
Subscriber Only
Monthly Wholesale Trade: May 2007

May 2007 sales of merchant wholesalers, except manufacturers'sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $357.2 billion, up 1.3 percent from the revised April level and were up 8.7 percent from the May 2006 level. The April preliminary estimate was revised upward $0.8 billion or 0.2 percent. May sales of durable goods were down 0.5 percent from last month, but were up 4.2 percent from a year ago. Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were down 5.3 percent. May sales of nondurable goods were up 2.9 percent from last month and were up 13.1 percent from last year.


Inventories. Total inventories of merchant wholesalers, except ...

Subscriber Only
MDM News Digest 3714

Two major distributors of industrial and oilfield PVF supplies, McJunkin Corporation, with nearly $2 billion in annual revenues,&nbsp ; and Red Man Pipe and Supply Company, nearly $1 billion in annual sales, have announced a merger of equals." Charleston, WV, and Tulsa, OK , will serve as co-headquarters for the new company. McJunkin Corporation CEO and President H.B. Wehrle III and Red Man Pipe and Supply Company President and CEO Craig Ketchum will serve as Co-CEOs for the new company.&nbsp ; More ...


Wolseley plc has reported it will close 24 more Stock Building Supply branches, primarily in the Midwest. The closures include a 370 headcount reduction. The announcement comes after ...

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