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Breaking news in Wholesale Distribution
The latest edition of the PricewaterhouseCoopers LLP Manufacturing Barometer reports less pessimism among U.S.-based industrial manufacturers over the US and global economies, according to the second quarter report. While a majority of survey respondents continued to view the U.S. and global economies as declining in the second quarter of 2009, their overall outlook through the second quarter of 2010 shows improvement.
In the prior four quarters, an overwhelming majority of respondents viewed the US and world economies as declining. However, the outlook began to shift in Q2 with a 30 point drop to 63% of industrial manufacturing executives maintaining that the US economy is in decline. Similarly, 66% of respondents doing business abroad continued to view the world economy as declining ...
Distressed-debt deal values are growing at a pace close to double that in 2008, according to a report in the Wall Street Journal. Such deals occur when banks exchange debt for ownership in the companies, and according to the article, which cites Dealogic, are happening in all industries. One quote in the article: "The new cliché among restructuring professionals: Bankruptcy is the new M&A."
I recently spoke with a few investment bankers and private equity professionals focused on the distribution industry for the article M&A Market Shows Signs of Life in the latest issue of MDM. ...
Fourth quarter sales were $9.1 billion, down 6.6% compared to the same period last year. Profit declined 5.6% to $315.3 ...
June U.S. manufacturing technology consumption totaled $135.85 million, according to AMT - The Association For Manufacturing Technology and AMTDA, the American Machine Tool Distributors' Association. This total was up 22.0% from May but down 69.2% from the total of $440.55 million reported for June 2008. With a year-to-date total of $759.03 million, 2009 is down 70.1% compared with 2008.
These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.
Despite the lack of government programs designed to specifically stimulate smaller manufacturers, the bottom to this business cycle may be in sight," according to Douglas K. Woods, president of AMT. "With total manufacturing technology orders showing positive ...
Canadian manufacturers experienced an increase in sales while U.S. manufacturers had a drop in sales in June 2009 according to sales data released by the Power Transmission Distributors Association. Confidence in the Canadian market (as measured on a scale of 1 to 10 with 10 being most optimistic) rose slightly by 0.1% from last month to 4.4, while U.S. confidence is holding at a current negative position of 4.8 for the third consecutive month.
U.S. manufacturers' sales fell by 2.8% in June 2009 when compared to May 2009. Sales in June 2009 fell 32.9% compared to the same period last year. Orders in June 2009 decreased by 5.3% over May 2009 orders.
Canadian manufacturers' sales increased 7.6% compared to May 2009. Sales were down 25.5% when compared to the same period last year. ...
The mergers and acquisitions market in distribution has changed dramatically in the past 24 months. While several deals were announced weekly in 2006 and 2007, the market flow today has slowed to a trickle. MDM spoke with distribution M&A experts about current conditions, and when they believe the market could turn around.
As difficult as it may be in current conditions, scenario planning has to be given more time in distribution executive team meetings, as well as distributor-manufacturer planning meetings. The worst reaction today is to say there is too much uncertainty to plan, so let's just focus on the next three months. The vast majority of conversations I've had with executives have often included the observation that revenues dropped by more than double what the company was using as its worst-case scenario. Based on second-quarter results, distributors are hoping the trough is behind them.
Border States Electric CEO Tammy Miller recently spoke with MDM Associate Editor Jenel Stelton-Holtmeier about how the electrical distributor is adapting to the current economy. In part II of this interview, she also addresses the company's plans for expansion by 2014. (Part I was published in the July 10, 2009, issue of MDM.)
UK-based Wolseley plc announced it would be continuing to cut costs across the company, as sales continued to decline. In its pre-close period trading statement for the 11 months ended June 30, revenues from continuing operations were down 1.5% to £13.25 billion (US$21.86 billion). Profit from continuing operations was down 47%. More
While average revenues were down 16% in the second quarter year-over-year, respondents to the second-quarter Baird Industrial Distribution Survey expect to see some improvement in the third quarter, with revenues down and average of 11.6% year-over-year. ...
