MDM Staff, Author at Modern Distribution Management

Reliance Steel & Aluminum Co., Los Angeles, CA, reported sales for the second quarter 2007 were $1.9 billion, an increase of 22% compared with the same period a year ago. Profit was $122.8 million, also up 22%.
&nbsp ;
For the six months ended June 30, 2007, profit was $234.5 million, up 36% from the same period in 2006. Sales for the 2007 year-to-date period were $3.74 billion, an increase of ...

July 19, 2007

Top Distributor Sectors

Wesco Sales Increase 13.6% in 2Q

WESCO International, Inc., Pittsburgh, PA, distributor of electrical MRO products and construction materials, reported sales of $1.5 billion for the second quarter 2007, an increase of 13.6% from the same period a year ago. Organic sales matched last year's second quarter.

&nbsp ;
Profit was $57.1 million, up slightly from the comparable 2006 quarter.
&nbsp ;
Wesco also announced it has closed on the acquisition of Cascade Controls Corporation, a distributor of automation and controls in the Northeast with annual sales of $11 million. The acquisition allows Wesco to better serve its OEM customer base.
&nbsp ;
Wesco reported that end-market activity was slower than expected during the quarter, slowing organic sales growth. The shortfall resulted primarily from ...

July 19, 2007

Top Distributor Sectors

Motion Industries Sales Up 9% in 2Q

Genuine Parts Company, Atlanta, GA, reported sales increased 4% in the second quarter 2007 to $2.77 billion. Profit was up 8%.

Motion Industries, GPC's industrial group, increased sales by 9%. EIS, the electrical group, reported a 7% jump, and the Automotive Group had a 2% increase in sales. Office Products was up 1%.

For the six months ended June 30, 2007, overall Genuine Parts Company sales were $5.42 billion, up 4% compared with the same period in 2006. Profit was $251.7 million, an increase of ...

July 19, 2007

Subscriber Only

M& A Survey: ‘It’s a Seller’s Market’

A record $2.7 trillion in first half 2007 worldwide mergers has led dealmakers to call the current M & A environment good or excellent (93%), according to a new survey by Association for Corporate Growth (ACG) and Thomson Financial.&nbsp ;

&nbsp ;
However, there is growing concern among private equity professionals -who have played an increasingly important role in the merger boom -that the easy availability of debt financing which has helped fuel transactions will tighten, with 68% saying the debt markets will be worse in the next year.&nbsp ;
&nbsp ;
The ACG/Thomson DealMakers Survey polled 1,011 investment bankers, private equity professionals, corporate development officers, as well as lawyers, accountants and other service providers involved in the deal ...

July 19, 2007

Top Distributor Sectors

PT/MC Distributors Report Rebound in Sales

The Power Transmission Distributors Association released May 2007 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products.
&nbsp ;
Following two months of declining sales, U.S. distributors'sales of PT/MC products rebounded with a 2.4 percent increase from April to May.&nbsp ; Year-to-year comparisons remained positive with sales in May 2007 coming in 6.4 percent higher than in May 2006.&nbsp ; Accounts receivable collection days declined 2.1 percent when compared to April.&nbsp ; The May 2007confidence index for U.S. distributors remained unchanged for the third month in a row at 6.6 (on a 10-point scale).
&nbsp ;
Canadian distributors'sales of PT/MC products on a month-to-month comparison mirrored the performance of ...

July 19, 2007

Top Distributor Sectors

Lewis-Goetz Acquires Samson Industrial

Lewis-Goetz and Company, Inc., Pittsburgh, PA, has acquired Samson Industrial, expanding its reach further into the Southeast and solidifying its presence in the Gulf Coast.&nbsp ;

Samson Industrial is a distributor and fabricator of specialty industrial supplies specializing in fluid and material conveyance, fluid sealing, vibration and dampening, fastening, personal safety and industrial tools. Samson has 15 locations, including its headquarters in Tulsa, OK.

Lewis-Goetz is a distributor of fabricated industrial rubber products including industrial, hydraulic and metal hose, conveyer belts, gaskets and seals, and related accessories.

Private equity firm Audax Group recent bought Lewis-Goetz, which, with recently acquired Goodall Rubber ...

July 19, 2007

Top Distributor Sectors

SKF Group Sales Grow 11% in 2Q

SKF, Stockholm, Sweden, reported sales grew 11% in the second quarter 2007.
&nbsp ;
Sales were strongest in the Industrial Division and Service Division, as well as strong in the Automotive Division. SKF saw better sales growth in Europe, Asia and Latin America than in North America.
&nbsp ;
The manufacturer expects stronger demand for its products in the third quarter 2007, especially in Europe and Latin America. Demand is expected to be relatively unchanged in North ...

July 18, 2007

Top Distributor Sectors

NESCO Buys Yankee Electric Supply

NESCO, Canton, MA, a full-service electrical distributor serving electrical contractors, national retail accounts, commercial and industrial companies, and institutional accounts, has acquired Yankee Electric Supply.
&nbsp ;
Yankee Electric Supply is headquartered in Winooski, VT, with branch locations in Winooski and Morrisville, VT, and in Lebanon and Woodsville, NH. Both Vermont locations also have a Lighting Showroom. Yankee Electric Supply will continue to operate under its name as A Division of NESCO, Needham Electric Supply.
&nbsp ;
"For the past year, NESCO has been actively researching opportunities to expand into northern New England," stated Joseph A. Cincotta, CEO of NESCO.
&nbsp ;
NESCO and Yankee together will have 12 locations throughout the New ...

July 18, 2007

Subscriber Only

Wholesale Prices Fall 0.2% in June

The Producer Price Index for Finished Goods decreased 0.2 percent in June, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported. This decline followed advances of 0.9 percent in May and 0.7 percent in April. At the earlier stages of processing, prices received by producers of intermediate goods rose 0.5 percent in June after increasing 1.1 percent in the prior month, and the crude goods index moved up 0.3 percent following a 2.0-percent advance in May.
&nbsp ;
Among prices for finished goods, the index for energy goods fell 1.1 percent in June after rising 4.1 percent in May. Prices for consumer foods decreased 0.8 percent following a 0.2-percent decline in the previous month. By contrast, slightly counteracting the downturn in finished goods ...

July 17, 2007

Subscriber Only

Industrial Production Up 0.5% in June

Industrial production rose 0.5 percent in June after a decrease of 0.1 percent in May. At 113.4 percent of its 2002 average in June, total industrial production was 1.4 percent above its year-earlier level.

Manufacturing output moved up 0.6 percent in June; excluding motor vehicles and parts, factory output increased 0.4 percent after having been unchanged in May. In June, the output indexes for mining and utilities registered gains of 0.5 percent and 0.3 percent respectively.

For the second quarter as a whole, total industrial production advanced at an annual rate of 2.9 percent after an increase of 1.1 percent in the first quarter.

Capacity utilization for total industry moved up to 81.7 percent in June; the rate was 0.6 percentage point below its ...

July 17, 2007

Subscriber Only

Canadian Manufacturing Shipments Unchanged in May

After a slight decrease in April, manufacturing shipments in Canada remained virtually unchanged in May (-0.1%) at&nbsp ; $49.7&nbsp ; billion. Manufacturing shipments had trended slowly downwards throughout most of&nbsp ; 2006, before posting a strong first quarter in&nbsp ; 2007.

Manufacturers continued to face several challenges during May. The Canadian dollar appreciated significantly against its American counterpart, reaching a 30-year high by the end of May. In addition, the Labour Force Survey reported a&nbsp ; 0.6% drop in manufacturing employment during the month, a loss of&nbsp ; 12,300&nbsp ; jobs.

Despite these challenges, the volume of manufacturing shipments, using constant dollars, rose&nbsp ; 0.4% to&nbsp ; $45.5&nbsp ; billion. After increasing in seven ...

July 17, 2007

Top Distributor Sectors

ACR Group Hit by Residential Slowdown

ACR Group, Inc., Houston, TX, distributor of heating, ventilation and air conditioning equipment and supplies, reported profit dropped more than 50% in the first quarter ended May 31, 2007. Sales were down 4% to $59.5 million.
&nbsp ;
ACR, which just agreed to be purchased by HVAC distributor Watsco, said the year-over-year decline in revenue and profitability was attributable to a weakening in key geographies, including Florida and Nevada, with high exposure to residential new construction end-markets. ACR also blamed the slow results on cooler- than-normal weather conditions.
&nbsp ;
ACR had more than $240 million in annual sales in ...

July 17, 2007

Top Distributor Sectors

Stock Building Supply to Close 24 More Branches

Wolseley plc has reported it will close 24 more Stock Building Supply branches, primarily in the Midwest. The closures include a 370 headcount reduction.
&nbsp ;
The announcement comes after closing 22 branches and reducing headcount by about 4,500 in the past year, or a quarter of total employees.
&nbsp ;
Wolseley reported sales at Stock were down nearly 15% in the first 11 months of the fiscal year; commodity price deflation caused revenues to decline a further 10%. Profit was down two-thirds.
&nbsp ;
Lumber and structural panel prices, when combined, account for 45% of Stock's revenues; they have fallen by 21% and 27%, respectively.
&nbsp ;
Stock's results were offset by strong organic growth in the U.S. plumbing and heating business, improved performance ...

July 17, 2007

Top Distributor Sectors

Grainger Sales Up 8% in 2Q

Grainger, Chicago, IL, reported sales of $1.6 billion for the second quarter ended June 30, 2007, up 8% versus the same period a year ago. Profit was up 12%.
&nbsp ;
For the six months ended June 30, 2007, sales were $3.1 billion, up 8%, and profit up 15%.
&nbsp ;
U.S., Mexico
Sales in this segment, which includes branch-based businesses in the U.S., Mexico and China, increased 8% in the second quarter. Of the 8% growth, an estimated 5 percentage points came from the company's two growth initiatives in the U.S., market expansion and product line expansion.

Sales growth was reduced by 1 percentage point due to the continued wind-down of low margin contracts with integrated-supply customers as the company exits the remaining contracts throughout ...

July 16, 2007

Top Distributor Sectors

Eaton Sales Increase 4% in 2Q

Diversified industrial manufacturer Eaton Corporation, Cleveland, OH, reported sales of $3.25 billion in second quarter 2007, up 4% over the same period a year ago. Profit was $246 million, a decrease of 3%.

End markets were reported to have declined by 4%, due principally to the anticipated decline in the NAFTA heavy-duty truck market.

&nbsp ;
The manufacturer reported slightly stronger growth in the electrical markets, offset by weaker-than-anticipated conditions in the North American hydraulics markets.
&nbsp ;
Eaton has closed seven acquisitions in the first half of the year, with the majority of acquisition spending in aerospace and electrical power quality.
&nbsp ;
Business Segment Results
Second quarter sales for the Electrical ...

July 16, 2007

Finance

Industrial Distributors McJunkin and Red Man Merge

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" that will make the new company a leading industrial and oilfield PVF supplier in

North America. 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.

"It is an exciting time for Red Man with great ...

July 13, 2007

Top Distributor Sectors

Trelleborg Acquires Distributor of Precision Seals

Through its Trelleborg Sealing Solutions business unit, Sweden-based Trelleborg has acquired distributor AFM Inc., Portland, OR, which has 45 employees and sales of US$12.8 million (SEK 85M).
&nbsp ;
AFM is a distributor of hydraulic seals and customized rubber components. Products include dynamic seals, static seals and rotary seals. The bulk of AFM's current sales are to OEM customers in several industrial segments, including aerospace.

AFM's operations will be integrated into Trelleborg Sealing Solutions. AFM is a profitable and well-managed company with a wide range of products. This acquisition increases Trelleborg Sealing Solution's market presence in the US Northwest and central California," says Claus Bars& oslash; e, Business Area President of Trelleborg ...

July 12, 2007

Top Distributor Sectors

Pearlman Industries, Inc. Buys Stone Tool Supply

Pearlman Industries, Inc., Commerce, CA, a Harbour Group company and the parent of Pearl Abrasive Co. and Keystone Tools, has acquired Stone Tool Supply, Inc., Atlanta, GA.

Stone Tool Supply is a distributor of tools, equipment and accessories to the stone fabrication market. The company serves customers throughout the Southeast from its retail location in Atlanta as well as with a fleet of mobile sales vehicles, similar to the model of the Keystone Tools division of Pearlman.

Pearlman Industries, Inc. is a supplier of diamond cutting products and abrasives to professionals in diverse end-markets, including stone, tile, construction, welding and equipment rental. The company has two divisions: Pearl Abrasives, which develops abrasives and diamond products sold ...

July 12, 2007

Top Distributor Sectors

Fastenal Sales Grow 13% in 2Q

The Fastenal Company, Winona, MN, reported sales of $519.7 million for the second quarter ended June 30, 2007, an increase of 13.3% over sales in the second quarter of 2006. Profit increased from $51.5 million in the second quarter of 2006 to $60.2 million in the second quarter of 2007, an increase of 17%.

Sales for the six-month period ended June 30, 2007, were $1 billion, an increase of 13.3% over the first six months of 2006. Profit increased 15%.

During the first six months of 2007, Fastenal opened 123 new sites (Fastenal opened 132 new sites in the first six months of 2006). The 123 new sites represent an increase in stores since Dec. 31, 2006 of 6.2%. During the second quarter of 2007, Fastenal closed one store. There were 8,089 sales employees as of June 30, ...

July 12, 2007

Top Distributor Sectors

3M Announces eStore

3M, St. Paul, MN, has created the 3M eStore. At the new site, customers in the 48 contiguous United States can purchase 3M products with a credit card.

We're one of the largest industrial suppliers in the world," said H.C. Shin, executive vice president, 3M Industrial and Transportation Business, "but we know that our customers aren't aware of our full product line. By opening the 3M eStore, we are placing our products in more locations where our customers can purchase them.

"In addition, if they tell us they're interested, we'll connect them directly to one of our authorized distributors to set up an ongoing relationship. Our No. 1 goal is to make sure our customers can find and purchase 3M products the way they want.

"3M eStore is, in my ...

July 11, 2007

Posts By MDM Staff

Register for full access

Learn More about Custom Reports

Request a Market Prospector Demo

Get the MDM Update Newsletter