The 2020 Mid-Year Economic Update_long

News Digest 3609

acquire aviation parts distributor Aviall, Inc., Dallas, TX, in an all cash merger for $1.7 billion. Boeing will also assume about $350 million of net debt as part of the transaction. Aviall’s 2005 revenue was $1.3 billion, with more than 25 percent growth expected in 2006. More …


Buoyed by acquisitions, Beacon Roofing Supply Inc., Peabody, MA, fiscal 2006 second quarter sales were up 87.3 percent to $322.4 million from $172.1 million in the same period last year. The strong numbers reflect organic growth of 24.1 percent, with strong sales in all three major product lines: residential roofing, non-residential roofing and complementary building products. Year-to-date sales increased 78.4 percent to $662.3 million in 2006 from $371.3 million in 2005, reflecting internal growth of 19.1 percent. Beacon had second quarter net income of $4.8 million in 2006 compared to net income of $2.4 million in the same period in 2005, an increase of 97.5 percent. More …


Emerson, St. Louis, MO, reported sales increased 15 percent to $4.9 billion for the second quarter 2006. For the six months ended March 31, 2006, sales were $9.4 billion, a 15 percent increased from the same period last year. The company experienced sales growth in all five business segments and double-digit increases from four of the five.


Building materials distributor BlueLinx Holdings Inc., Atlanta, GA, reported revenues for the first quarter 2006 rose 1.8 percent to $1.38 billion from $1.35 billion for the first quarter 2005. The increase reflects a 15.7 percent increase in specialty product sales, partially offset by a 5.6 percent decline in structural product sales. More …


Metals service center Ryerson Inc., Chicago, IL, reported its first quarter 2006 sales of $1.4 billion decreased 6 percent from the first quarter 2050 and increased 11 percent from the fourth quarter 2005. For the first quarter of 2006, tons shipped declined 3.8 percent while the average selling price was down 2.2 percent, year-over-year. The average selling price per ton increased 6.2 percent from the fourth quarter 2005. More …


>Oldcastle Building Products Inc., the North American operation of building products producer and distributor CRH plc, has agreed to acquire Houston-based MMI Products Inc., Houston TX. MMI’s parent company is Merchants Metals Holding Company. CRH had 2005 sales of over $17 billion. MMI will become the foundation of a fifth product group for CRH’s Americas Products & Distribution Division. Oldcastle’s distribution arm is Allied Building Products. More …


>Berkshire Hathaway Inc., Omaha, NE, has agreed to acquire 80 percent of Iscar Ltd., a global metal cutting tools manufacturer based in Tefen, Israel, for nearly $4 billion. The transaction values Iscar as a $5 billion company. The Wertheimer family, IMC’s current shareholders, will own the remaining 20 percent. The Iscar Metalworking Companies is a privately held group in the metal cutting tools business through its Iscar, TaeguTec, Ingersoll and other IMC group companies. More …


>Williams Bros. Lumber, a business of Home Depot Supply, has agreed to acquire Cox Lumber, Florida’s largest independently owned lumber and building materials dealer with $396 million in 2005 sales. The acquisition will significantly increase the size of Williams Bros., based in Suwannee, GA, and extend its reach into key growth markets in Florida and the Southeast. The acquisition of Cox Lumber is part of The Home Depot’s strategy to grow in the $410 billion professional supply market. HD has also agreed to acquire EnerBank USA from CMS Energy. EnerBank provides home improvement loans that remodeling and trade contractors can offer their customers. More …

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Regal-Beloit Corporation, Beloit, WI, ($1.4 billion in 2005 sales) has sold its Regal Cutting Tools business to YG1 Co., Ltd., Incheon City, Korea. ‘As we moved aggressively into motion control systems, electric motors and power generation over the past several years, the cutting tools business was no longer a strategic focus for us,” said Henry W. Knueppel, chairman and CEO of Regal-Beloit. The sale of the business will reduce Regal-Beloit’s sales by approximately $17 million on an annual basis and will be neutral to earnings. More …


 


>Stock Building Supply, Raleigh, NC, a $4.1 billion supplier of building materials and construction services to professionals in the U.S., has acquired Efficient Electric, United Electric, United Plumbing, and DSI Inc., four companies under the common ownership of Steve Menzies. The four companies recorded combined sales of $94.1 million in 2005. More …


Airgas, Inc., Radnor, PA, reported its fiscal 2006 earnings were up 20 percent to $2.8 billion. For the full fiscal year 2006, net income was $124 million. In fiscal 2006, Airgas acquired 13 companies for a total of $128 million those companies had combined annual sales of $141 million. The company also reported fourth quarter sales were up 16 percent to $747 million reflecting same-store sales growth as well as growth through acquisition. The distributor reported same-store sales growth was up 12 percent, gas and rent up 10 percent and hardgoods up 13 percent. Fourth quarter net income grew 39 percent to $33 million. More …


>Industrial Distribution Group, Inc., Atlanta, reported its first quarter revenues for the period ended March 31, 2006, were $140.3 million compared with $137.9 million in the comparable quarter in 2005. Revenue for the three months ended March 31, 2005, includes $2.3 million associated with the company’s Cardinal Machinery business unit, which was sold during the third quarter 2005. The company’s net income for the first quarter of 2006 increased 25.8 percent to $1.5 million compared to net income of $1.2 million for the comparable period of the prior year. More …


>The Boeing Company, Chicago, IL, has agreed to

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