August 10 2009 Archives - Modern Distribution Management

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August 10 2009

Volume 39, Issue 15 - 08/10/2009

Volume:

39

Issue:

15

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Features

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.

 

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. ...

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than seven years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to ...

About this report: This is the MDM Public Distributor Report, provided on a quarterly basis to subscribers of Modern Distribution Management. The report is available online only.

Click here to download this report in pdf.

Not surprisingly, distributors continue to cut costs and work to improve efficiencies. Some are looking to new markets and expanding their reach to offset weaknesses in their traditional end-markets. In their quarterly earnings calls, distributors in diverse sectors say they have yet to see an increase in underlying demand in many end-markets. Here is a look at three distributors in different sectors and what they are seeing in the market.
Beacon Roofing ...

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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.

 

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. ...

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than seven years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to ...

About this report: This is the MDM Public Distributor Report, provided on a quarterly basis to subscribers of Modern Distribution Management. The report is available online only.

Click here to download this report in pdf.

Not surprisingly, distributors continue to cut costs and work to improve efficiencies. Some are looking to new markets and expanding their reach to offset weaknesses in their traditional end-markets. In their quarterly earnings calls, distributors in diverse sectors say they have yet to see an increase in underlying demand in many end-markets. Here is a look at three distributors in different sectors and what they are seeing in the market.
Beacon Roofing ...

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