The 2020 Mid-Year Economic Update_long

News Digest 3610

Strategic Distribution Inc., Bristol, PA, reported its revenues for the three months ended March 31, 2006, increased $7.7 million, or 26.5 percent, to $36.7 million from $29 million in the same period last year. The company recorded a net loss of $1.096 million, compared with a net loss of $1.601 million for the same period in 2005. Revenues from existing customers increased by $6.9 million in the first quarter, due to an increase in volume of product sales compared with the same period in 2005. These increases were offset by a $0.3 million reduction in revenues for a closed site. New customers accounted for $1.1 million in revenue. More …

Graybar Electric, St. Louis, MO, recently reported sales of $1.12 billion for the first quarter ended March 31, 2006. That’s an increase of 16 percent over the same period in 2005, when the distributor recorded $967 million in sales. The electrical distributor reported $10 million in profit for the first quarter 2006, compared with a net loss of $1.9 million in the first quarter of 2005. More …

MRO product distributor Interline Brands Inc. reported sales increased 14.3 percent to $224.7 million in the first quarter 2006, compared with the same period in 2005. Average daily sales increased 16.1 percent. The company’s professional contractor business had organic revenue growth of more than 15 percent. Net income was $8.4 million compared with $1.4 million in the first quarter 2005.

Enterprise software provider Infor has agreed to acquire SSA Global, Chicago, IL, a provider of extended enterprise solutions and services. The acquisition will make Infor a $1.6 billion company. Under the terms of the agreement, Infor has agreed to pay $19.50 per share in cash to SSA Global’s shareholders. The parties anticipate closing the transaction in the third calendar quarter of 2006. More …

Steel pipe and fittings distributor Edgen Corporation, Baton Rouge, LA, reported sales were $89.7 million for the three months ended March 31, 2006, compared with sales of $64.8 million for the same period in 2005. Net income for the first quarter 2006 was $2.3 million compared with a net loss of $1.5 million in the fourth quarter 2005. This compares with a net loss of $6.5 million for the first quarter 2005. More …

Building materials dealer Lanoga Corporation, Redmond, WA, has purchased Michigan-based Delta Truss, which will become part of Lanoga’s Timber Roots Truss Division. The acquisition adds $25 million in annual sales. Lanoga businesses include United Building Centers, Spenard Builders Supply, Lumbermen’s, Home Lumber, Dixieline Lumber Co., and F.E. Wheaton. Sales in 2005 were $3.1 billion. In February, Lanoga was acquired by an affiliate of Fidelity Investments and joined with Strober Organization to comprise Pro-Build Inc., with combined sales of $5 billion and 400 locations.

Non-residential construction investment hit a record high in 2005 in Canada for the fifth year in a row, according to a recent study by Statistics Canada. Non-residential investment (commercial, industrial and institutional projects) hit $31.5 billion last year, up 8.7 percent from 2004. The $1.4 billion gain in office tower investment accounted more than one-half of the total increase in non-residential construction last year. Investment in warehouses jumped 14.6 percent to $2 billion.

Rexel Inc., Dallas, TX, has acquired Capitol Light and Supply Company, Hartford, CN, a distributor in the New England electrical distribution market and the national retail lighting market. Capitol Light and Supply Company had sales of $234 million in 2005. With 415 employees at 22 branch locations in five states (Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island), CLS, the electrical wholesaling business, enjoys a 15 percent market share in the region. Capitol Light, the company’s national retail lighting business, operates in 36 states and Canada, with distribution centers located in New Haven, Connecticut, and Fort Worth, Texas. More …

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. 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. See article on p. 3 of this section. More …

The Home Depot Supply reported $2.1 billion in first quarter 2006 sales, compared with $657 million in the same period in 2005, thanks to a series of acquisitions. Home Depot, Atlanta, GA, reported overall first quarter revenues of $21.5 billion, a 13.1 percent increase from the first quarter 2005. Home Depot reported net income of $1.4 billion in first quarter 2006, a 19 percent increase over the same period last year. During the first quarter, Home Depot acquired Hughes Supply for $3.4 billion. The results of Hughes Supply are included in the company’s consolidated results beginning Mar. 30, 2006. More …

Grainger President James T. Ryan told analysts of the Electrical Products Group, New York, NY, he expects the company’s recent product line expansion to contribute about 1 percentage point to sales growth in 2006. With 39,000 new products, Grainger’s 2006 catalog features 115,000 products, compared with 82,400 last year. Ryan said daily revenue growth for May is forecast at 9-10 percent versus May 2005. Businesses and institutions are trying to reduce the cost of procuring tools, safety equipment, lighting and other products by reducing the number of suppliers they use, Ryan said in describing trends in that market.

Former Sonepar chief Richard Worthy’s U.S. Electrical Services, LLC (USESI) has agreed to purchase Electrical Wholesalers Inc., Hartford, CN, effective June 29, 2006. According to Electrical Wholesaling magazine, Electrical Wholesalers had revenues of more than $100 million in 2003. Electrical Wholesalers has 22 locations and more than 375 employees. USESI has also agreed to buy Monarch Electric, a two-location electrical wholesaler in New Jersey that employs 70 people. It serves contractor, commercial and industrial markets. The purchase is effective May 31, 2006. Both companies will retain their names and management.

Industrial Supply Corp., Richmond, VA, has acquired C. Arthur Weaver Company, Inc. C. Arthur Weaver Company, also in Richmond with branches in Chesapeake and Roanoke, VA, is a wholesale distributor of branded power transmission and fluid power products and services to industrial customers throughout Virginia. Industrial Supply Corp., in business for 73 years, focuses on MRO product lines and has branches in Virginia and North Carolina. More

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