Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Distribution and outsourcing group Bunzl PLC (BNZL.LN) Monday said full-year trading is in line with expectations, enabling it to take advantage of opportunities to develop further.
The company said full-year revenue rose 11% on the year, buoyed by positive currency exchange. At constant exchange rates, underlying revenue in the second half is some 1% below the 2008 figure but this is a slight improvement in the growth rate compared to the first half of 2009.
Bunzl said its operating margin has also improved compared to the first half, largely due to cost cutting and a reduced negative transaction impact from foreign exchange, particularly in the U.K. & Ireland and Australasia. Revenue growth in North America in the second half is slightly stronger than the 2% growth recorded in the first half, due to new customer wins and additional business with existing accounts, but revenue in the U.K. & Ireland continued to be below last year's - hit by the weak economy.
Bunzl, based in London, provides outsourcing solutions and service-oriented distribution, supplying a broad range of non-food consumable products. Its main customer markets include grocery, food service, cleaning and safety, non-food retail and health care.
Bunzl shares closed Friday at 657 pence, giving the company a market valuation of GBP2.16 billion. They've risen 11.4% since the start of the year.
-By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; anita.likus@dowjones.com
Thursday, December 17, 2009
Wednesday, December 16, 2009
WW Grainger Sales Show Further Improvement In November
DOW JONES NEWSWIRES-December 10, 2009: 08:52 AM ET
W.W. Grainger Inc. (GWW) reported a 3% drop in November daily sales in the U.S. as year-over-year comparisons for the industrial-supply company continue to ease. The figure is the best for the company this year, and including acquisitions and other impacts, Grainger's total global sales rose 2%. That compares with a 3% drop in October and double-digit declines earlier in 2009. November had one additional selling day from the prior-year period.
Grainger, considered a bellwether of the U.S. economy because of the breadth of its types of products, also reported a 7% increase in November daily sales in Canada, though they were down 8% excluding currency changes. Sales more than tripled at its other regions, aided by acquisitions in Japan and India. The company, whose products range from lighting to mechanical to janitorial, in October said it expected fourth-quarter comparisons to improve compared with a year earlier, when sales tumbled as the economy worsened.
Shares closed Wednesday at $97.73 and didn't trade premarket.
W.W. Grainger Inc. (GWW) reported a 3% drop in November daily sales in the U.S. as year-over-year comparisons for the industrial-supply company continue to ease. The figure is the best for the company this year, and including acquisitions and other impacts, Grainger's total global sales rose 2%. That compares with a 3% drop in October and double-digit declines earlier in 2009. November had one additional selling day from the prior-year period.
Grainger, considered a bellwether of the U.S. economy because of the breadth of its types of products, also reported a 7% increase in November daily sales in Canada, though they were down 8% excluding currency changes. Sales more than tripled at its other regions, aided by acquisitions in Japan and India. The company, whose products range from lighting to mechanical to janitorial, in October said it expected fourth-quarter comparisons to improve compared with a year earlier, when sales tumbled as the economy worsened.
Shares closed Wednesday at $97.73 and didn't trade premarket.
Tuesday, December 15, 2009
ISA launches Industrial Supply Guide
Online tool helps manufacturers, distributors and end users find MRO products and services quickly and easily
Victoria Fraza Kickham -- Industrial Distribution, 12/11/2009 10:27:50 AM
The Industrial Supply Assn., a trade group representing distributors and manufacturers of maintenance, repair and operations (MRO) products, has launched an online Industrial Supply Guide to help members and others find industrial products and services quickly and easily on the Web.
Located on ISA's Web site, www.isapartners.org, the guide features a wide range of products and services exclusively for the MRO industry and designed to assist ISA members and others in their purchasing decisions.The industry-specific guide allows users to perform keyword- and category-driven searches, ISA said, and also has Request for Information (RFI) functionality. The RFI feature allows users to contact participating suppliers with a click of their mouse.
Participating manufacturers and distributors can purchase a company listing, direct Web site link and email generation capacity, and can also add videos to their listing. ISA partnered with electronic buyer and supplier guide publisher MultiView Inc. to produce the guide.
"For the first time, MRO professionals and customers will have access to specialized products and services through the industry's leading resource," said MultiView president Dan Maitland. "Cutting through the clutter of multiple search engines and finding exactly what you are looking for, all at the same time, is a wonderful benefit to each and every channel member."
Victoria Fraza Kickham -- Industrial Distribution, 12/11/2009 10:27:50 AM
The Industrial Supply Assn., a trade group representing distributors and manufacturers of maintenance, repair and operations (MRO) products, has launched an online Industrial Supply Guide to help members and others find industrial products and services quickly and easily on the Web.
Located on ISA's Web site, www.isapartners.org, the guide features a wide range of products and services exclusively for the MRO industry and designed to assist ISA members and others in their purchasing decisions.The industry-specific guide allows users to perform keyword- and category-driven searches, ISA said, and also has Request for Information (RFI) functionality. The RFI feature allows users to contact participating suppliers with a click of their mouse.
Participating manufacturers and distributors can purchase a company listing, direct Web site link and email generation capacity, and can also add videos to their listing. ISA partnered with electronic buyer and supplier guide publisher MultiView Inc. to produce the guide.
"For the first time, MRO professionals and customers will have access to specialized products and services through the industry's leading resource," said MultiView president Dan Maitland. "Cutting through the clutter of multiple search engines and finding exactly what you are looking for, all at the same time, is a wonderful benefit to each and every channel member."
Friday, December 4, 2009
Grainger rolls out tools to help MRO buyers track stimulus spending
New ordering tools also let buyers track Buy American Act compliance
Susan Avery -- Purchasing, 12/1/2009 11:57:52 AM
Grainger has developed a set of new capabilities to help customers who receive funding through the American Recovery and Reinvestment Act (ARRA) comply with its requirements including those related to provisions of the Buy American Act. Customers who receive the funding may include purchasing professionals at manufacturing companies, construction companies and utilities. With the funding they may source through the distributor maintenance, repair and operations (MRO) products such as safety supplies, material handling equipment, HVAC (heating, ventilation, air conditioning) equipment, lighting and electric motors, among others.
"One of the areas that is top of mind for many of our customers is how to navigate the complexities of tracking their stimulus bill [ARRA] purchases," says Paul Kindzierski, vice president, Grainger Industrial Supply Sales. "We've made it easier to comply with the detailed reporting requirements for purchases across our broad product offering, enabling them to consolidate their MRO purchases with us and focus their resources on their core business."After the ARRA was passed in February, Grainger put together a cross functional team of its employees to determine the impact it would have on MRO buyers, Drew Fichter, customer business issues associate, told Purchasing in an exclusive interview."On the surface, it seems simple, but when you look at the scale at which the stimulus is being implemented, impacting a variety of industries and government agencies, it becomes extremely complex," he says.
According to the website Recovery.gov, the ARRA is intended "to provide a short-term jumpstart to the economy, with many projects funded by the $787 billion in recovery money, especially infrastructure improvements, expected to benefit the economy for many years." These long-term projects include investments in the renewable energy and energy-efficiency industries, government buildings and the nation's infrastructure.The act also created the Recovery.gov website to provide transparency to the American people about how recipients are using funds and to increase accountability helping guard against fraud, waste and abuse. To this end, recipients of the ARRA funds must report on their use including the amount of money received, the money spent, the scope of the project and the number of jobs created on a website that feeds into Recovery.gov. This process began in October.
Grainger's team focused on two issues it determined would impact customers who receive the funds and use them to purchase MRO products through the distributor: (1) transparency and accountability of the ARRA and (2) its requirements related to provisions of the Buy American Act. "These two issues put strict requirements on Grainger and our customers," says Fichter. For instance, he explains that under certain circumstances, customers are required to purchase products that comply with the Buy American Act and track how they spend the money.
To help customers track how they spend the ARRA funds on MRO products they purchase from Grainger, the distributor enhanced its ordering system to electronically flag a order that's purchased with the funds at the time it is placed, by phone, at a branch or online. In each case, the customer must identify the order as an ARRA or stimulus order. "By doing this, we can track a customer's ARRA spending with Grainger and at their request provide a report detailing their purchases which can ultimately help them comply with the quarterly reporting requirements," says Fichter. To comply with the provisions of the Buy American Act, the most important information buyers need is country of origin of the products they are purchasing, which Grainger has been routinely gathering from suppliers for years now, Fichter says.
The distributor makes country of origin information available in several forms: Buyers can obtain it when they let their service representative know they are making a purchase with the ARRA funds. They can also find the information in the product item description on grainger.com. And the supplier includes it in its response to RFQs (request for quotation) it receives from customers."All these measures are really meant to inform the customer and to provide them with critical information they need to make an informed decision based on the ARRA requirements," says Fichter, adding that the distributor is making every effort to inform customers on the Buy American provisions because there are some circumstances under the ARRA requirements where they are waived.
At the same time, Grainger is dedicating resources to training and educating both its employees and its customers on the ARRA. "Because we had a team that's been dedicated to understanding the act we have been able to leverage that knowledge when working with our customers," Fichter says. The company also has created a landing page on grainger.com (www.grainger.com/stimulus) that provides MRO buyers with additional information.
Susan Avery -- Purchasing, 12/1/2009 11:57:52 AM
Grainger has developed a set of new capabilities to help customers who receive funding through the American Recovery and Reinvestment Act (ARRA) comply with its requirements including those related to provisions of the Buy American Act. Customers who receive the funding may include purchasing professionals at manufacturing companies, construction companies and utilities. With the funding they may source through the distributor maintenance, repair and operations (MRO) products such as safety supplies, material handling equipment, HVAC (heating, ventilation, air conditioning) equipment, lighting and electric motors, among others.
"One of the areas that is top of mind for many of our customers is how to navigate the complexities of tracking their stimulus bill [ARRA] purchases," says Paul Kindzierski, vice president, Grainger Industrial Supply Sales. "We've made it easier to comply with the detailed reporting requirements for purchases across our broad product offering, enabling them to consolidate their MRO purchases with us and focus their resources on their core business."After the ARRA was passed in February, Grainger put together a cross functional team of its employees to determine the impact it would have on MRO buyers, Drew Fichter, customer business issues associate, told Purchasing in an exclusive interview."On the surface, it seems simple, but when you look at the scale at which the stimulus is being implemented, impacting a variety of industries and government agencies, it becomes extremely complex," he says.
According to the website Recovery.gov, the ARRA is intended "to provide a short-term jumpstart to the economy, with many projects funded by the $787 billion in recovery money, especially infrastructure improvements, expected to benefit the economy for many years." These long-term projects include investments in the renewable energy and energy-efficiency industries, government buildings and the nation's infrastructure.The act also created the Recovery.gov website to provide transparency to the American people about how recipients are using funds and to increase accountability helping guard against fraud, waste and abuse. To this end, recipients of the ARRA funds must report on their use including the amount of money received, the money spent, the scope of the project and the number of jobs created on a website that feeds into Recovery.gov. This process began in October.
Grainger's team focused on two issues it determined would impact customers who receive the funds and use them to purchase MRO products through the distributor: (1) transparency and accountability of the ARRA and (2) its requirements related to provisions of the Buy American Act. "These two issues put strict requirements on Grainger and our customers," says Fichter. For instance, he explains that under certain circumstances, customers are required to purchase products that comply with the Buy American Act and track how they spend the money.
To help customers track how they spend the ARRA funds on MRO products they purchase from Grainger, the distributor enhanced its ordering system to electronically flag a order that's purchased with the funds at the time it is placed, by phone, at a branch or online. In each case, the customer must identify the order as an ARRA or stimulus order. "By doing this, we can track a customer's ARRA spending with Grainger and at their request provide a report detailing their purchases which can ultimately help them comply with the quarterly reporting requirements," says Fichter. To comply with the provisions of the Buy American Act, the most important information buyers need is country of origin of the products they are purchasing, which Grainger has been routinely gathering from suppliers for years now, Fichter says.
The distributor makes country of origin information available in several forms: Buyers can obtain it when they let their service representative know they are making a purchase with the ARRA funds. They can also find the information in the product item description on grainger.com. And the supplier includes it in its response to RFQs (request for quotation) it receives from customers."All these measures are really meant to inform the customer and to provide them with critical information they need to make an informed decision based on the ARRA requirements," says Fichter, adding that the distributor is making every effort to inform customers on the Buy American provisions because there are some circumstances under the ARRA requirements where they are waived.
At the same time, Grainger is dedicating resources to training and educating both its employees and its customers on the ARRA. "Because we had a team that's been dedicated to understanding the act we have been able to leverage that knowledge when working with our customers," Fichter says. The company also has created a landing page on grainger.com (www.grainger.com/stimulus) that provides MRO buyers with additional information.
Wednesday, December 2, 2009
Airgas acquires Fitch Industrial and Welding Supply
Airgas Acquires Fitch Industrial & Welding Supply Based in Lawton, OK
RADNOR, PA – December 1, 2009 -- Airgas, Inc. (NYSE: ARG) today announced it has completed the acquisition of Fitch Industrial & Welding Supply (“Fitch”), an industrial gas and welding supply distributor with three locations in Oklahoma and one in Wichita Falls, TX. The Lawton, OK-based business employs 39 people and generated more than $10 million in revenue during calendar 2008.
The Oklahoma branches have been integrated into Airgas Mid-South, headquartered in Tulsa, OK, while the Wichita Falls branch has been integrated into Airgas Southwest, headquartered in Houston, TX. Airgas Mid South and Airgas Southwest are among 12 regional companies within Airgas’ distribution business.
“Fitch has a strong reputation in the area, and long-standing relationships with their customers,” said Max Hooper, Airgas western division president. “We are excited to welcome the Fitch employees to Airgas, and to provide our new customers with access to the most complete offering of products and services in the industry.”
Fitch boasts nearly 60 years of operation after its founding in 1950 by Carl Fitch. Carl’s son Fred joined the company in 1970, soon thereafter assuming his current role as president and owner.
“Fred Fitch has been an industry leader for years, not only in running his company but also in holding significant management roles, including past president, in the industry association GAWDA,” said Les Graff, Airgas senior vice president – corporate development. “We are very pleased Fred chose to join forces with Airgas, as we remain committed to strengthening our platform by investing in quality businesses.”
“It has been a true pleasure to build this business over the years, and to serve the outstanding business community in and around Lawton,” commented Fitch. “I wanted to be sure that our Fitch employees and customers had the best future possible, so it made perfect sense to join Airgas, the nation’s premier industrial gas company.”
Kevin Brown - http://www.stardustspillproducts.com/
RADNOR, PA – December 1, 2009 -- Airgas, Inc. (NYSE: ARG) today announced it has completed the acquisition of Fitch Industrial & Welding Supply (“Fitch”), an industrial gas and welding supply distributor with three locations in Oklahoma and one in Wichita Falls, TX. The Lawton, OK-based business employs 39 people and generated more than $10 million in revenue during calendar 2008.
The Oklahoma branches have been integrated into Airgas Mid-South, headquartered in Tulsa, OK, while the Wichita Falls branch has been integrated into Airgas Southwest, headquartered in Houston, TX. Airgas Mid South and Airgas Southwest are among 12 regional companies within Airgas’ distribution business.
“Fitch has a strong reputation in the area, and long-standing relationships with their customers,” said Max Hooper, Airgas western division president. “We are excited to welcome the Fitch employees to Airgas, and to provide our new customers with access to the most complete offering of products and services in the industry.”
Fitch boasts nearly 60 years of operation after its founding in 1950 by Carl Fitch. Carl’s son Fred joined the company in 1970, soon thereafter assuming his current role as president and owner.
“Fred Fitch has been an industry leader for years, not only in running his company but also in holding significant management roles, including past president, in the industry association GAWDA,” said Les Graff, Airgas senior vice president – corporate development. “We are very pleased Fred chose to join forces with Airgas, as we remain committed to strengthening our platform by investing in quality businesses.”
“It has been a true pleasure to build this business over the years, and to serve the outstanding business community in and around Lawton,” commented Fitch. “I wanted to be sure that our Fitch employees and customers had the best future possible, so it made perfect sense to join Airgas, the nation’s premier industrial gas company.”
Kevin Brown - http://www.stardustspillproducts.com/
Acklands-Grainger acquires K&D Pratt Industrial Division
Purchase strengthens distributor's business in Atlantic Canada
Industrial Distribution Staff -- Industrial Distribution, 11/30/2009 9:44:59 AM
Acklands-Grainger, the Canadian division of broad-line MRO distributor W.W. Grainger, acquired the assets of K&D Pratt Industrial Division.
K&D Pratt's industrial division sells industrial and safety products from facilities in Dartmouth, Nova Scotia; St. John's, Newfoundland; and Saint John, New Brunswick. With 2008 sales of C$12 million (approximately US$11.3 million), the division was previously one of six business units owned and operated by K&D Pratt Group Inc. Terms of the deal were not disclosed.
"We are very excited about joining forces with the K&D Pratt Industrial Division and anticipate it will help us enhance our position as our customers' indispensable partner in keeping their facilities safe, efficient and functional," Sean O'Brien, president of Acklands-Grainger, said in a statement announcing the deal. "They are a leading distributor in Atlantic Canada and their solid customer relationships and service excellence will further enhance our strong local presence in this key and growing region."
The acquisition follows two other recent purchases by W.W. Grainger. Earlier this month, Grainger bought lighting service company Alliance Energy Solutions; in October, the distributor bought Green Bay, Wis.-based Imperial Supplies, which sells maintenance products and aftermarket components for the vehicle and fleet industry.
Industrial Distribution Staff -- Industrial Distribution, 11/30/2009 9:44:59 AM
Acklands-Grainger, the Canadian division of broad-line MRO distributor W.W. Grainger, acquired the assets of K&D Pratt Industrial Division.
K&D Pratt's industrial division sells industrial and safety products from facilities in Dartmouth, Nova Scotia; St. John's, Newfoundland; and Saint John, New Brunswick. With 2008 sales of C$12 million (approximately US$11.3 million), the division was previously one of six business units owned and operated by K&D Pratt Group Inc. Terms of the deal were not disclosed.
"We are very excited about joining forces with the K&D Pratt Industrial Division and anticipate it will help us enhance our position as our customers' indispensable partner in keeping their facilities safe, efficient and functional," Sean O'Brien, president of Acklands-Grainger, said in a statement announcing the deal. "They are a leading distributor in Atlantic Canada and their solid customer relationships and service excellence will further enhance our strong local presence in this key and growing region."
The acquisition follows two other recent purchases by W.W. Grainger. Earlier this month, Grainger bought lighting service company Alliance Energy Solutions; in October, the distributor bought Green Bay, Wis.-based Imperial Supplies, which sells maintenance products and aftermarket components for the vehicle and fleet industry.
Wednesday, November 18, 2009
Sarah Palin to address STAFDA Conference in November 2010
Sarah Palin to headline 2010 STAFDA convention
Former Alaska Governor and 2008 Republican Vice Presidential nominee will deliver the keynote address at STAFDA's 34th Annual Convention & Trade Show in Phoenix
Industrial Distribution Staff -- Industrial Distribution, 11/17/2009 4:17:05 PM
Sarah Palin will deliver the keynote address at the Specialty Tools & Fasteners Distributors Assn.'s 34th Annual Convention & Trade Show, Nov. 8-10, 2010, in Phoenix.
STAFDA wrapped up its 33rd annual convention and trade show, which drew a crowd of more than 3,500, in Atlanta last week.
Palin will address STAFDA members during the group's General Session on Monday, Nov. 8, 2010. According to STAFDA officials, she will speak about her vision for energy independence, health care, fiscal responsibility, small government and national security.
"She encourages her audiences to look to the future, and challenges leaders to do more to support our military, rein in spending and shrink government while creating fiscally responsible health care that benefits all Americans," STAFDA said in a press release announcing the event.
Palin's appearance on the STAFDA stage will come one week after the November 2010 elections. And she is not the first major political figure to address STAFDA members. Former Secretary of State Colin Powell delivered the keynote address in 2005, and former U.S. Senator and 1996 Republican Presidential candidate Bob Dole addressed the crowd in 1999.
Former Alaska Governor and 2008 Republican Vice Presidential nominee will deliver the keynote address at STAFDA's 34th Annual Convention & Trade Show in Phoenix
Industrial Distribution Staff -- Industrial Distribution, 11/17/2009 4:17:05 PM
Sarah Palin will deliver the keynote address at the Specialty Tools & Fasteners Distributors Assn.'s 34th Annual Convention & Trade Show, Nov. 8-10, 2010, in Phoenix.
STAFDA wrapped up its 33rd annual convention and trade show, which drew a crowd of more than 3,500, in Atlanta last week.
Palin will address STAFDA members during the group's General Session on Monday, Nov. 8, 2010. According to STAFDA officials, she will speak about her vision for energy independence, health care, fiscal responsibility, small government and national security.
"She encourages her audiences to look to the future, and challenges leaders to do more to support our military, rein in spending and shrink government while creating fiscally responsible health care that benefits all Americans," STAFDA said in a press release announcing the event.
Palin's appearance on the STAFDA stage will come one week after the November 2010 elections. And she is not the first major political figure to address STAFDA members. Former Secretary of State Colin Powell delivered the keynote address in 2005, and former U.S. Senator and 1996 Republican Presidential candidate Bob Dole addressed the crowd in 1999.
Grainger acquires Alliance Energy Solutions
MRO distributor makes its first service-based acquisition, focused on energy-efficient lighting retrofits
Victoria Fraza Kickham -- Industrial Distribution, 11/18/2009 1:10:52 PM
Broad-line MRO distributor W.W. Grainger said it signed and closed an all-cash acquisition of Alliance Energy Solutions, a service company that provides turn-key energy-efficient lighting retrofits.
Grainger said it expects the transaction to be accretive to earnings in 2010 by approximately one cent to two cents per share. Other terms of the deal were not disclosed.
"This transaction is the first service-based acquisition we're adding to our U.S. customer offering and we anticipate it will help us accelerate our strategy to become our customers' indispensable partner in helping them keep their facilities safe, efficient and functional," Grainger's chairman, president and CEO Jim Ryan said in a statement announcing the deal.
"Our customers told us they had a need for a service to complement our deep product line around lighting products and we listened," said Mike Pulick, president of Grainger's U.S. business. "The Alliance Energy Solutions team is dedicated to helping customers through offering value-added services that help them drive energy efficiency and productivity, with particular expertise in the area of lighting retrofits. We are delighted to have them join the U.S. team."
Alliance Energy Solutions is based in Oxford, Conn., and had sales of $20 million in 2008.
Victoria Fraza Kickham -- Industrial Distribution, 11/18/2009 1:10:52 PM
Broad-line MRO distributor W.W. Grainger said it signed and closed an all-cash acquisition of Alliance Energy Solutions, a service company that provides turn-key energy-efficient lighting retrofits.
Grainger said it expects the transaction to be accretive to earnings in 2010 by approximately one cent to two cents per share. Other terms of the deal were not disclosed.
"This transaction is the first service-based acquisition we're adding to our U.S. customer offering and we anticipate it will help us accelerate our strategy to become our customers' indispensable partner in helping them keep their facilities safe, efficient and functional," Grainger's chairman, president and CEO Jim Ryan said in a statement announcing the deal.
"Our customers told us they had a need for a service to complement our deep product line around lighting products and we listened," said Mike Pulick, president of Grainger's U.S. business. "The Alliance Energy Solutions team is dedicated to helping customers through offering value-added services that help them drive energy efficiency and productivity, with particular expertise in the area of lighting retrofits. We are delighted to have them join the U.S. team."
Alliance Energy Solutions is based in Oxford, Conn., and had sales of $20 million in 2008.
Thursday, October 22, 2009
MSC's Q4 sales fall 21%
Full-year results are down 16%, but distributor says it sees encouraging signs ahead
Victoria Fraza Kickham -- Industrial Distribution, 10/21/2009 10:18:18 AM
MRO distributor MSC Industrial Direct posted lower sales and earnings for the fourth quarter and fiscal year ended August 29, but says it sees encouraging signs in the marketplace as fiscal 2010 gets underway.
In its fiscal fourth quarter, MSC's sales fell 21 percent to $354.1 million, compared with $448.6 million in the prior-year period. Net income fell 49 percent to $26 million.
For the full year, sales fell 16 percent to $1.49 billion, compared with $1.78 billion in fiscal 2008. Net income for the year fell 36 percent to $125.1 million.
MSC's president and CEO David Sandler said the company ended 2009 with a solid performance in the fourth quarter and pointed to the opportunities ahead as the economy improves.
"While our visibility remains limited, we are seeing some encouraging signs in the marketplace," he said in statement announcing the results. "We look at the eventual economic recovery as a significant opportunity for MSC and will continue to focus our investment program on the opportunities that we believe will produce the greatest returns. As in the past, we will prudently balance our level of investment spending to maintain what we believe to be the right mix between short-term profitability and achieving our long-term growth objectives. Overall, we view this time as an extraordinary opportunity to gain market share, and we intend to take advantage of it."
Kevin Brown http://www.stardustspillproducts.com/
Victoria Fraza Kickham -- Industrial Distribution, 10/21/2009 10:18:18 AM
MRO distributor MSC Industrial Direct posted lower sales and earnings for the fourth quarter and fiscal year ended August 29, but says it sees encouraging signs in the marketplace as fiscal 2010 gets underway.
In its fiscal fourth quarter, MSC's sales fell 21 percent to $354.1 million, compared with $448.6 million in the prior-year period. Net income fell 49 percent to $26 million.
For the full year, sales fell 16 percent to $1.49 billion, compared with $1.78 billion in fiscal 2008. Net income for the year fell 36 percent to $125.1 million.
MSC's president and CEO David Sandler said the company ended 2009 with a solid performance in the fourth quarter and pointed to the opportunities ahead as the economy improves.
"While our visibility remains limited, we are seeing some encouraging signs in the marketplace," he said in statement announcing the results. "We look at the eventual economic recovery as a significant opportunity for MSC and will continue to focus our investment program on the opportunities that we believe will produce the greatest returns. As in the past, we will prudently balance our level of investment spending to maintain what we believe to be the right mix between short-term profitability and achieving our long-term growth objectives. Overall, we view this time as an extraordinary opportunity to gain market share, and we intend to take advantage of it."
Kevin Brown http://www.stardustspillproducts.com/
Sales fall 16% at The Stanley Works
Manufacturer cites record gross margin rate and strong free cash flow performance
Industrial Distribution Staff -- Industrial Distribution, 10/21/2009 1:18:21 PM
Tool maker The Stanley Works reported lower sales and earnings for the third quarter of 2009 but pointed to gross margin and free cash flow improvements as key positives in a continued tough economy.
Sales in the quarter fell 16 percent to $936 million; the company posted a $60.4 million profit during the quarter compared to $163 million in profit in same period a year ago.
Sales in the company's industrial segment fell 31 percent compared to the third quarter of 2008 while sales in its construction and do-it-yourself category fell 23 percent compared to the year-ago period. Security segment sales increased 3 percent.
Gross margins improved to a record rate of 41.3 percent, the company said, due to continued execution of productivity projects, price carryover and improved mix due to relatively stable performance in the company's security segment.
In addition, the company generated free cash flow of $158 million in the third quarter, up 53 percent versus the 2008 third quarter.
"We are encouraged by the second consecutive quarter of record gross margins despite the market-driven volume headwinds we experienced through September," chairman and CEO John F. Lundgren said in a statement announcing the results. "Our ongoing success in tailoring our product and service offerings to best fit our customers' needs is producing market share gains within a majority of our businesses while positioning us to take full advantage of the mild stabilization we are experiencing in select end markets."
Industrial Distribution Staff -- Industrial Distribution, 10/21/2009 1:18:21 PM
Tool maker The Stanley Works reported lower sales and earnings for the third quarter of 2009 but pointed to gross margin and free cash flow improvements as key positives in a continued tough economy.
Sales in the quarter fell 16 percent to $936 million; the company posted a $60.4 million profit during the quarter compared to $163 million in profit in same period a year ago.
Sales in the company's industrial segment fell 31 percent compared to the third quarter of 2008 while sales in its construction and do-it-yourself category fell 23 percent compared to the year-ago period. Security segment sales increased 3 percent.
Gross margins improved to a record rate of 41.3 percent, the company said, due to continued execution of productivity projects, price carryover and improved mix due to relatively stable performance in the company's security segment.
In addition, the company generated free cash flow of $158 million in the third quarter, up 53 percent versus the 2008 third quarter.
"We are encouraged by the second consecutive quarter of record gross margins despite the market-driven volume headwinds we experienced through September," chairman and CEO John F. Lundgren said in a statement announcing the results. "Our ongoing success in tailoring our product and service offerings to best fit our customers' needs is producing market share gains within a majority of our businesses while positioning us to take full advantage of the mild stabilization we are experiencing in select end markets."
Thursday, October 15, 2009
Grainger's sales drop 14 percent for 3rd quarter
Jack Keough -- Industrial Distribution, 10/14/2009 9:25:35 AM
Grainger today reported third quarter sales of $1.6 billion, which were down 14 percent versus third quarter 2008. Net earnings for the quarter increased 3 percent to $145 million versus $140 million in 2008. The 2009 third quarter included a one-time $47 million pre-tax or $0.37 per share gain from the step-up of its investment in MonotaRO Co. Ltd., after Grainger became a majority owner in September.
"Despite the effects of the sluggish economy, we are pleased with our results," said Grainger Chairman and CEO James T. Ryan in a statement. . "Our execution has been solid. In particular, our relentless focus on providing exceptional customer service is paying off. We continue to see evidence that we are capturing market share. Now more than ever, our customers are depending on Grainger's product breadth, unmatched local availability and customer service to help them cost effectively maintain their facilities."
Ryan added, "While daily sales remain stable, we are not yet seeing a catalyst for a sustained economic turnaround in any of our major end markets. We expect comparisons to improve as sales fell in the fourth quarter last year. We will continue to focus on what we can control. With the investments we have made, we remain in a great position as the economy recovers."
Sales for the company decreased 14 percent for the quarter; down 14 percent in July, down 13 percent in August and down 13 percent in September. Price contributed a positive 4 percent while volume was down 17 percent. Sales were negatively affected by 1 percent related to foreign exchange. There were 64 selling days in the quarter, the same as the 2008 third quarter.
Operating earnings for the company were down 19 percent. The operating earnings decrease was the result of expenses decreasing at a slower rate than sales, partially offset by a higher gross profit margin.
Effective with the first quarter of 2009, the company has two reportable business segments, the United States and Canada, which represent approximately 98 percent of company sales. This new reporting reflects the integration of Lab Safety Supply with Grainger's U.S. branch-based business.
The remaining operating units (Mexico, India, Puerto Rico, China, and Panama) are included in other businesses and are not considered a segment. The company acquired Asia Pacific Brands India Private Limited in June 2009 resulting in the inclusion of the India operations in other businesses in the third quarter. The company obtained a majority ownership of MonotaRO in September, consolidated its balance sheet as of the end of the third quarter and will consolidate its income statement beginning in the fourth quarter.
Sales for the United States segment decreased 14 percent in the 2009 third quarter. Sales declined by 14 percent in July, August and September.
As a result of integrating Lab Safety Supply with the Grainger Industrial Supply business starting late in 2008, the company had said that it expected to deliver $70-$100 million in incremental revenue and $20-$30 million in cost savings. To date, the project has generated $24 million of the additional revenue and $15 million of the savings, with the company on track to deliver within the range of the projected sales and cost benefits by mid-2010.
Sales declined in all customer end-markets in the United States. Grainger continues to add more products to its offering that will result in having almost 300,000 products in the 2010 catalog. Product line expansion contributed $251 million in sales for the third quarter versus $196 million in the third quarter 2008.
Operating earnings for the quarter were down 15 percent in the United States. The operating earnings decrease was the result of operating expenses decreasing at a slower rate than sales, partially offset by a higher gross profit margin. Payroll-related expenses were down due to lower headcount, reduced commissions and no bonus accruals.
Around one third of the decrease in operating expenses is expected to be permanent. Gross profit margins were up due to sales price increases exceeding product cost inflation and a $10 million reduction in the LIFO inventory reserve due to lower inflation on inventory purchases and lower inventory levels than previously estimated.
Sales for the Acklands-Grainger business in Canada for the quarter were down 13 percent versus the 2008 third quarter. In local currency, sales were down 8 percent. Sales in local currency declined 10 percent in July, 5 percent in August and 9 percent in September. T
The Canadian economy remained weak, particularly the forestry and natural gas industries. Growth in the oil and utilities sectors remained favorable in the quarter.Operating earnings decreased 41 percent for the 2009 third quarter (38 percent in local currency), primarily due to the sales decline and a 260 basis point decline in gross margin.
The decline in gross margin was primarily the result of higher product costs due to unfavorable foreign exchange rates and an increase in the mix of lower margin business, particularly large customers.
Sales for the other businesses, which include Mexico, India, Puerto Rico, China, and Panama, were up 11 percent versus prior year. The sales increase was due primarily to the acquisition of the business in India in June 2009, along with contributions from China and Panama. Mexico represents approximately 50 percent of sales within this group.
Sales in Mexico were down 21 percent in the quarter versus the same period in 2008 due to unfavorable foreign exchange. In local currency, sales in Mexico increased 2 percent for the quarter. Operating losses for other businesses were $2 million for the quarter compared to $3 million a year ago.
Grainger today reported third quarter sales of $1.6 billion, which were down 14 percent versus third quarter 2008. Net earnings for the quarter increased 3 percent to $145 million versus $140 million in 2008. The 2009 third quarter included a one-time $47 million pre-tax or $0.37 per share gain from the step-up of its investment in MonotaRO Co. Ltd., after Grainger became a majority owner in September.
"Despite the effects of the sluggish economy, we are pleased with our results," said Grainger Chairman and CEO James T. Ryan in a statement. . "Our execution has been solid. In particular, our relentless focus on providing exceptional customer service is paying off. We continue to see evidence that we are capturing market share. Now more than ever, our customers are depending on Grainger's product breadth, unmatched local availability and customer service to help them cost effectively maintain their facilities."
Ryan added, "While daily sales remain stable, we are not yet seeing a catalyst for a sustained economic turnaround in any of our major end markets. We expect comparisons to improve as sales fell in the fourth quarter last year. We will continue to focus on what we can control. With the investments we have made, we remain in a great position as the economy recovers."
Sales for the company decreased 14 percent for the quarter; down 14 percent in July, down 13 percent in August and down 13 percent in September. Price contributed a positive 4 percent while volume was down 17 percent. Sales were negatively affected by 1 percent related to foreign exchange. There were 64 selling days in the quarter, the same as the 2008 third quarter.
Operating earnings for the company were down 19 percent. The operating earnings decrease was the result of expenses decreasing at a slower rate than sales, partially offset by a higher gross profit margin.
Effective with the first quarter of 2009, the company has two reportable business segments, the United States and Canada, which represent approximately 98 percent of company sales. This new reporting reflects the integration of Lab Safety Supply with Grainger's U.S. branch-based business.
The remaining operating units (Mexico, India, Puerto Rico, China, and Panama) are included in other businesses and are not considered a segment. The company acquired Asia Pacific Brands India Private Limited in June 2009 resulting in the inclusion of the India operations in other businesses in the third quarter. The company obtained a majority ownership of MonotaRO in September, consolidated its balance sheet as of the end of the third quarter and will consolidate its income statement beginning in the fourth quarter.
Sales for the United States segment decreased 14 percent in the 2009 third quarter. Sales declined by 14 percent in July, August and September.
As a result of integrating Lab Safety Supply with the Grainger Industrial Supply business starting late in 2008, the company had said that it expected to deliver $70-$100 million in incremental revenue and $20-$30 million in cost savings. To date, the project has generated $24 million of the additional revenue and $15 million of the savings, with the company on track to deliver within the range of the projected sales and cost benefits by mid-2010.
Sales declined in all customer end-markets in the United States. Grainger continues to add more products to its offering that will result in having almost 300,000 products in the 2010 catalog. Product line expansion contributed $251 million in sales for the third quarter versus $196 million in the third quarter 2008.
Operating earnings for the quarter were down 15 percent in the United States. The operating earnings decrease was the result of operating expenses decreasing at a slower rate than sales, partially offset by a higher gross profit margin. Payroll-related expenses were down due to lower headcount, reduced commissions and no bonus accruals.
Around one third of the decrease in operating expenses is expected to be permanent. Gross profit margins were up due to sales price increases exceeding product cost inflation and a $10 million reduction in the LIFO inventory reserve due to lower inflation on inventory purchases and lower inventory levels than previously estimated.
Sales for the Acklands-Grainger business in Canada for the quarter were down 13 percent versus the 2008 third quarter. In local currency, sales were down 8 percent. Sales in local currency declined 10 percent in July, 5 percent in August and 9 percent in September. T
The Canadian economy remained weak, particularly the forestry and natural gas industries. Growth in the oil and utilities sectors remained favorable in the quarter.Operating earnings decreased 41 percent for the 2009 third quarter (38 percent in local currency), primarily due to the sales decline and a 260 basis point decline in gross margin.
The decline in gross margin was primarily the result of higher product costs due to unfavorable foreign exchange rates and an increase in the mix of lower margin business, particularly large customers.
Sales for the other businesses, which include Mexico, India, Puerto Rico, China, and Panama, were up 11 percent versus prior year. The sales increase was due primarily to the acquisition of the business in India in June 2009, along with contributions from China and Panama. Mexico represents approximately 50 percent of sales within this group.
Sales in Mexico were down 21 percent in the quarter versus the same period in 2008 due to unfavorable foreign exchange. In local currency, sales in Mexico increased 2 percent for the quarter. Operating losses for other businesses were $2 million for the quarter compared to $3 million a year ago.
Grainger acquires Imperial Supplies
Jack Keough -- Industrial Distribution, 10/14/2009 8:44:48 AM
Grainger, a leading broad line distributor of facilities maintenance products, today announced it has signed and closed an all cash acquisition of Imperial Supplies, LLC from American Capital, Ltd. No other terms of the agreement were disclosed. Grainger anticipates the transaction should be accretive to earnings by $.03-$.05 a share in 2010 including product and transportation cost savings.
Imperial, headquartered in Green Bay, Wisc., is a national distributor of maintenance products and aftermarket components for the vehicle and fleet industry. The company has built its reputation by offering customers highly efficient methods to order and monitor their purchases, serving the fleet market since 1958. In 2008, Imperial had sales of $67 million.
"Imperial Supplies is a leading player in the $4 billion fleet maintenance industry and we are excited to begin working together," said Mike Pulick, President of Grainger's U.S. Businesses. "In addition to the financial benefits for our shareholders, we anticipate cross selling opportunities by offering Imperial customers access to Grainger's broad product offering and national distribution scale and Grainger customers access to the 20,000 fleet maintenance products Imperial carries."
The business will continue to operate as Imperial Supplies, LLC under Grainger's Specialty Brands business and will be led by Rob Gilson, Imperial's CEO. Gilson will report to Ralph Howard, Vice President, Specialty Brands, and together they will leverage Grainger's expertise and resources to profitably grow market share.
"We share common values that focus on serving customers with the utmost integrity," said Gilson. "Going forward, this is a big win for Imperial customers because they have our ongoing commitment to superior service combined with the scale of Grainger's industry leading network."
Grainger, a leading broad line distributor of facilities maintenance products, today announced it has signed and closed an all cash acquisition of Imperial Supplies, LLC from American Capital, Ltd. No other terms of the agreement were disclosed. Grainger anticipates the transaction should be accretive to earnings by $.03-$.05 a share in 2010 including product and transportation cost savings.
Imperial, headquartered in Green Bay, Wisc., is a national distributor of maintenance products and aftermarket components for the vehicle and fleet industry. The company has built its reputation by offering customers highly efficient methods to order and monitor their purchases, serving the fleet market since 1958. In 2008, Imperial had sales of $67 million.
"Imperial Supplies is a leading player in the $4 billion fleet maintenance industry and we are excited to begin working together," said Mike Pulick, President of Grainger's U.S. Businesses. "In addition to the financial benefits for our shareholders, we anticipate cross selling opportunities by offering Imperial customers access to Grainger's broad product offering and national distribution scale and Grainger customers access to the 20,000 fleet maintenance products Imperial carries."
The business will continue to operate as Imperial Supplies, LLC under Grainger's Specialty Brands business and will be led by Rob Gilson, Imperial's CEO. Gilson will report to Ralph Howard, Vice President, Specialty Brands, and together they will leverage Grainger's expertise and resources to profitably grow market share.
"We share common values that focus on serving customers with the utmost integrity," said Gilson. "Going forward, this is a big win for Imperial customers because they have our ongoing commitment to superior service combined with the scale of Grainger's industry leading network."
Wednesday, September 16, 2009
Grainger's August sales drop 13 percent-Company sees weak demand across all customer segments
Jack Keough -- Industrial Distribution, 9/14/2009 7:48:44 AM EDT
W.W. Grainger says its August sales dropped 13 percent in August versus August, 2008 primarily the result of weak demand across all customer end-markets and geographies. Foreign exchange negatively affected sales by approximately 1 percentage point. There were the same number of selling days in August 2009 and August 2008 (21). The 2009 third quarter will have the same number of selling days (64) as the 2008 third quarter.
In the United States, sales decreased 14 percent while sales dropped eight percent in Canada. Grainger's other business grew 16 percent.
W.W. Grainger says its August sales dropped 13 percent in August versus August, 2008 primarily the result of weak demand across all customer end-markets and geographies. Foreign exchange negatively affected sales by approximately 1 percentage point. There were the same number of selling days in August 2009 and August 2008 (21). The 2009 third quarter will have the same number of selling days (64) as the 2008 third quarter.
In the United States, sales decreased 14 percent while sales dropped eight percent in Canada. Grainger's other business grew 16 percent.
Tuesday, August 25, 2009
Grainger's Revamped Web Site
Lindsay Young Konzak
David Gordon and Allen Ray recently posted on their blog that Grainger will be launching its revamped Web site soon. (See blog at http://www.electricaltrends.com/.) They say that the site relaunch is focused on improved searching capabilities, new features to "enhance productivity," enhanced account information and easier catalog access.
The investment is a good one for Grainger given that the distributor's e-commerce channel is growing at twice the company's growth rate, according to its 2009 Fact Book posted at its Web site. The distributor presents these numbers:
E-commerce sales rose by 13% to $1.5 billion (in 2008). Sales in the e-commerce channel represented 24% of overall sales for Grainger's U.S. business, 7% for the Canadian business and 9% for Grainger's other businesses.
David Gordon and Allen Ray recently posted on their blog that Grainger will be launching its revamped Web site soon. (See blog at http://www.electricaltrends.com/.) They say that the site relaunch is focused on improved searching capabilities, new features to "enhance productivity," enhanced account information and easier catalog access.
The investment is a good one for Grainger given that the distributor's e-commerce channel is growing at twice the company's growth rate, according to its 2009 Fact Book posted at its Web site. The distributor presents these numbers:
E-commerce sales rose by 13% to $1.5 billion (in 2008). Sales in the e-commerce channel represented 24% of overall sales for Grainger's U.S. business, 7% for the Canadian business and 9% for Grainger's other businesses.
Wednesday, August 12, 2009
Wolseleys New Industrial Catalog
Jack Keough -- Industrial Distribution, 8/11/2009 1:19:37 PM EDT
Wolseley's Canadian Industrial Business Group has released its new industrial products catalog.
The 2009-10 catalog features more than 850 pages with products from more than 200 manufacturers. It also includes nearly 200 pages of fastener-related products.
"The catalog also includes an enhanced 41-page technical section that includes fastener specifications, safety PPE respiratory selection charts and adhesive bonding guides," said Doug Collins, Director of Sourcing and Marketing. "With each edition we continue to expand our offering featuring more up-to-date products from our preferred vendor partners. Also, the charts and specifications make this catalogue an important reference guide for our customers."
This 2009-10 catalog includes product lines for OEM/MRO including:
• Health & safety
• Hand tools
• Power tools
• Facility maintenance
• Material handling
• Cutting tools, tooling components and precision measuring
• Abrasives
• Welding
• Fasteners
To browse the catalog online, visit the Wolseley Industrial Products Group website. The French version of the catalog will be available shortly.
Wolseley Canada is a distributor of plumbing, heating, ventilation, air conditioning and refrigeration, engineered pipe, waterworks, fire protection, pipes, valves and fittings and industrial supplies products. Headquartered in Burlington, Ontario, the company operates approximately 250 branches across Canada.
Wolseley's Canadian Industrial Business Group has released its new industrial products catalog.
The 2009-10 catalog features more than 850 pages with products from more than 200 manufacturers. It also includes nearly 200 pages of fastener-related products.
"The catalog also includes an enhanced 41-page technical section that includes fastener specifications, safety PPE respiratory selection charts and adhesive bonding guides," said Doug Collins, Director of Sourcing and Marketing. "With each edition we continue to expand our offering featuring more up-to-date products from our preferred vendor partners. Also, the charts and specifications make this catalogue an important reference guide for our customers."
This 2009-10 catalog includes product lines for OEM/MRO including:
• Health & safety
• Hand tools
• Power tools
• Facility maintenance
• Material handling
• Cutting tools, tooling components and precision measuring
• Abrasives
• Welding
• Fasteners
To browse the catalog online, visit the Wolseley Industrial Products Group website. The French version of the catalog will be available shortly.
Wolseley Canada is a distributor of plumbing, heating, ventilation, air conditioning and refrigeration, engineered pipe, waterworks, fire protection, pipes, valves and fittings and industrial supplies products. Headquartered in Burlington, Ontario, the company operates approximately 250 branches across Canada.
UPDATE-Grainger sales decline deepens in July
Wed Aug 12, 2009 11:33am EDT
NEW YORK, Aug 12 (Reuters) - WW Grainger Inc (GWW.N), a supplier of building maintenance products, said on Wednesday its sales declined at a faster pace in July than in either May or June, citing weak demand across its markets.
July sales were down 14 percent from a year earlier, compared to the 13 percent sales decline Grainger reported in June and 10 percent in June.
Sales for August are trending about the same as July, the company said.
Sales of seasonal products were weak because of mild weather in much of the United States. Sales to governments fell by mid-single digits, reflecting states' budget crises, while sales to the retail and manufacturing sectors were down by double-digits, Grainger said on a monthly podcast posted on its website.
About a quarter of company sales are to the manufacturing sector -- a smaller exposure to the sector than rivals like MSC Industrial Direct Co Inc (MSM.N) and WESCO International Inc (WCC.N).
Analysts have noted a high degree of correlation between Grainger's monthly sales performance and data on U.S. non-farm payrolls and industrial production, but improvement in those metrics has not been reflected in Grainger's results.
Last week's jobs report showed a much smaller than expected decline in U.S. payrolls, while this Friday's industrial production data are expected to show an increase.
The company also competes with industrial distributors Fastenal Co (FAST.O) and Applied Industrial Technologies Inc (AIT.N).
Grainger shares were down 47 cents to $88.25 in late morning trading on the New York Stock Exchange. Fastenal and Applied Industrial were both higher. (Reporting by Nick Zieminski, editing by Gerald E. McCormick)
NEW YORK, Aug 12 (Reuters) - WW Grainger Inc (GWW.N), a supplier of building maintenance products, said on Wednesday its sales declined at a faster pace in July than in either May or June, citing weak demand across its markets.
July sales were down 14 percent from a year earlier, compared to the 13 percent sales decline Grainger reported in June and 10 percent in June.
Sales for August are trending about the same as July, the company said.
Sales of seasonal products were weak because of mild weather in much of the United States. Sales to governments fell by mid-single digits, reflecting states' budget crises, while sales to the retail and manufacturing sectors were down by double-digits, Grainger said on a monthly podcast posted on its website.
About a quarter of company sales are to the manufacturing sector -- a smaller exposure to the sector than rivals like MSC Industrial Direct Co Inc (MSM.N) and WESCO International Inc (WCC.N).
Analysts have noted a high degree of correlation between Grainger's monthly sales performance and data on U.S. non-farm payrolls and industrial production, but improvement in those metrics has not been reflected in Grainger's results.
Last week's jobs report showed a much smaller than expected decline in U.S. payrolls, while this Friday's industrial production data are expected to show an increase.
The company also competes with industrial distributors Fastenal Co (FAST.O) and Applied Industrial Technologies Inc (AIT.N).
Grainger shares were down 47 cents to $88.25 in late morning trading on the New York Stock Exchange. Fastenal and Applied Industrial were both higher. (Reporting by Nick Zieminski, editing by Gerald E. McCormick)
Monday, July 20, 2009
WW Grainger 2Q Earnings Fall 18% On Lower Volumes
W.W. Grainger Inc.'s (GWW) second-quarter earnings fell 18% as the industrial-supplies company continued to see weak sales, but results topped analysts' expectations.
Last quarter, Chairman and Chief Executive Jim Ryan said the company hadn't seen a bottom to the sales decline. He echoed the thought Wednesday, saying the company hadn't seen an indication of an economic turnaround, but added its results indicate Grainger is gaining market share during the recession. Ryan added that although the economy remains a challenge, the company was pleased with the quarter's results and was investing for growth.
The company posted income of $92.5 million, or $1.21 a share, down from $113.2 million, or $1.42 a share, a year earlier. Revenue decreased 13% to $1.53 billion. Analysts polled by Thomson Reuters expected earnings of $1.14 and revenue of $1.52 billion. Gross margin rose to 40.8% from 40.2% despite volume falling 19%. Ryan said, "We continue to focus on the things we can control." Grainger, which sells an array of products including lighting, motors and cleaning materials, is seen as a bellwether for the U.S. economy because of its breadth of products.
Shares closed Tuesday at $82.58 and haven't traded premarket.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; kerry.benn@dowjones.com
Last quarter, Chairman and Chief Executive Jim Ryan said the company hadn't seen a bottom to the sales decline. He echoed the thought Wednesday, saying the company hadn't seen an indication of an economic turnaround, but added its results indicate Grainger is gaining market share during the recession. Ryan added that although the economy remains a challenge, the company was pleased with the quarter's results and was investing for growth.
The company posted income of $92.5 million, or $1.21 a share, down from $113.2 million, or $1.42 a share, a year earlier. Revenue decreased 13% to $1.53 billion. Analysts polled by Thomson Reuters expected earnings of $1.14 and revenue of $1.52 billion. Gross margin rose to 40.8% from 40.2% despite volume falling 19%. Ryan said, "We continue to focus on the things we can control." Grainger, which sells an array of products including lighting, motors and cleaning materials, is seen as a bellwether for the U.S. economy because of its breadth of products.
Shares closed Tuesday at $82.58 and haven't traded premarket.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; kerry.benn@dowjones.com
Vulcan Materials presents supplier award
Susan Avery -- Purchasing, 7/15/2009 12:58:05 PM EDT
Vulcan Materials Co. has presented its Platinum Alliance supplier award to Applied Industrial Technologies for excellent service in 2008. The award is the highest that Vulcan presents to a supplier for meeting performance expectations.
Vulcan's procurement operation determines the recipient through an annual survey of its internal customers, the company's plant managers. More than 135 plant managers and leaders from Vulcan's nine divisions rate suppliers on key operations criteria that include product quality, customer service, technical support, ease of doing business and overall value added.
"Our success is dependent on relationships with quality vendors, such as Applied, and we sincerely value their dedicated service," said Pete Roberts, director of procurement at Vulcan in Birmingham, Ala.
Good customer service is one of the more important traits buyers seek in a distributor supplier, say purchasing professionals responding to a recent Purchasing survey.
Applied achieved Gold Alliance supplier award status in 2007 and 2006. In total, Applied has received a Bronze, Silver, Gold or Platinum Alliance award from Vulcan every year since 2000
Vulcan Materials Co. has presented its Platinum Alliance supplier award to Applied Industrial Technologies for excellent service in 2008. The award is the highest that Vulcan presents to a supplier for meeting performance expectations.
Vulcan's procurement operation determines the recipient through an annual survey of its internal customers, the company's plant managers. More than 135 plant managers and leaders from Vulcan's nine divisions rate suppliers on key operations criteria that include product quality, customer service, technical support, ease of doing business and overall value added.
"Our success is dependent on relationships with quality vendors, such as Applied, and we sincerely value their dedicated service," said Pete Roberts, director of procurement at Vulcan in Birmingham, Ala.
Good customer service is one of the more important traits buyers seek in a distributor supplier, say purchasing professionals responding to a recent Purchasing survey.
Applied achieved Gold Alliance supplier award status in 2007 and 2006. In total, Applied has received a Bronze, Silver, Gold or Platinum Alliance award from Vulcan every year since 2000
Tuesday, July 14, 2009
HD Supply expands mid-Atlantic service
Distributor's Facilities Maintenance group opens distribution center in Hanover, Maryland
Industrial Distribution Staff -- Industrial Distribution, 7/9/2009 3:47:28 PM EDT
HD Supply Facilities Maintenance announced Thursday the opening of a new distribution center in Hanover, Maryland.
The new facility expands next-day inventory availability for the mid-Atlantic region and offers a greater variety of the 20,000 MRO products featured in the current HD Supply Facilities Maintenance catalog, according to a company statement.
The Baltimore-area distribution center follows the recent opening of the company's Phoenix, Arizona, distribution center.
Industrial Distribution Staff -- Industrial Distribution, 7/9/2009 3:47:28 PM EDT
HD Supply Facilities Maintenance announced Thursday the opening of a new distribution center in Hanover, Maryland.
The new facility expands next-day inventory availability for the mid-Atlantic region and offers a greater variety of the 20,000 MRO products featured in the current HD Supply Facilities Maintenance catalog, according to a company statement.
The Baltimore-area distribution center follows the recent opening of the company's Phoenix, Arizona, distribution center.
Fastenal's Q2 sales drop 21 percent
Fastener distributor cites continued weakness in its industrial production and non-residential construction businesses
Victoria Fraza Kickham -- Industrial Distribution, 7/14/2009 11:18:16 AM EDT
Winona, Minn.-based fastener and general-line MRO distributor Fastenal posted a 21.4 percent drop in sales and a nearly 43 percent drop in earnings in the second quarter ended June 30. The distributor said the ongoing weak economy continues to negatively affect sales, particularly in its industrial production business and, more recently, in its non-residential construction business.
Fastenal's sales for the quarter were $474.9 million compared with $604.2 million in the second quarter of 2008. Net earnings were $43.5 million compared with $76.2 million in the second quarter of 2008.
Sales for the six months ended June 30 were down 17.6 percent to $964.2 million compared with $1.2 billion in the first six months of 2008. Net earnings fell 36 percent to $92.2 million compared with $144.3 million in the first half of 2008.
The distributor said its manufacturing business continues to suffer, though more so on the industrial production side-in which Fastenal sells products that become part of a customer's finished product-than on the maintenance side. Its manufacturing business contracted 28 percent in the second quarter while its non-residential construction business declined roughly 23 percent. Fastenal's remaining business-to resellers, government and its store-based retail business-is producing better results, the company said.
Fastenal opened 42 new stores in the first six months of this year, a nearly 2 percent increase since the end of 2008. The distributor slowed its new-store opening rate to 2 percent to 5 percent for 2009, but expects to resume its normal 7 percent to 10 percent store opening rate starting in January. The company has also stopped adding personnel, except for new store openings and for stores that our growing. In all, Fastenal says it has 8.5 percent fewer employees than it did at the end of December and 4.6 percent fewer employees than it did a year ago.
Victoria Fraza Kickham -- Industrial Distribution, 7/14/2009 11:18:16 AM EDT
Winona, Minn.-based fastener and general-line MRO distributor Fastenal posted a 21.4 percent drop in sales and a nearly 43 percent drop in earnings in the second quarter ended June 30. The distributor said the ongoing weak economy continues to negatively affect sales, particularly in its industrial production business and, more recently, in its non-residential construction business.
Fastenal's sales for the quarter were $474.9 million compared with $604.2 million in the second quarter of 2008. Net earnings were $43.5 million compared with $76.2 million in the second quarter of 2008.
Sales for the six months ended June 30 were down 17.6 percent to $964.2 million compared with $1.2 billion in the first six months of 2008. Net earnings fell 36 percent to $92.2 million compared with $144.3 million in the first half of 2008.
The distributor said its manufacturing business continues to suffer, though more so on the industrial production side-in which Fastenal sells products that become part of a customer's finished product-than on the maintenance side. Its manufacturing business contracted 28 percent in the second quarter while its non-residential construction business declined roughly 23 percent. Fastenal's remaining business-to resellers, government and its store-based retail business-is producing better results, the company said.
Fastenal opened 42 new stores in the first six months of this year, a nearly 2 percent increase since the end of 2008. The distributor slowed its new-store opening rate to 2 percent to 5 percent for 2009, but expects to resume its normal 7 percent to 10 percent store opening rate starting in January. The company has also stopped adding personnel, except for new store openings and for stores that our growing. In all, Fastenal says it has 8.5 percent fewer employees than it did at the end of December and 4.6 percent fewer employees than it did a year ago.
Monday, June 15, 2009
Applied Industrial Technologies partners with ORS Nasco
MRO distributor extends scope to industrial supplies
By Susan Avery -- Purchasing, 6/10/2009 9:02:00 AM
Applied Industrial Technologies has entered into a new strategic partnership with ORS Nasco, a wholesaler of tools, safety products, general industrial items and welding supplies. ORS Nasco, a single-source wholesaler, sells exclusively to distributors of safety, welding, construction, oilfield/pipeline and industrial supplies.The partnership expands Applied’s offering of maintenance supplies in areas such as tools and safety with such brands as Rubbermaid, CM Hoists, UnionTool and Maglite. The offering also extends into new product areas such as welding and oilfield/pipeline supplies. In all, the partnership adds more than 80,000 items to Applied’s product basket.In addition, the partnership provides Applied with one-day and two-day delivery on 99% of ORS Nasco inventory. Coordinating efficiencies of ORS Nasco’s eight strategically located U.S. distribution centers with Applied’s logistical infrastructure makes possible these quick delivery times.In an effort to consolidate spending with suppliers and keep costs in line, MRO buyers continue to look to industrial distributors to provide an increasing number of goods and services. Results of a recent Purchasing survey, in fact, show 35% of respondents buying more through distribution today than five years ago. MRO stands for maintenance, repair and operations.“ORS Nasco gives us immediate access to the types of products that many customers have been requesting—general industrial items that round out our product offering and make Applied truly a one-stop shop for industrial purchasing,” says Jeff Ramras, vice president—supply chain management, at Applied in Cleveland, Ohio.With $2.1 billion in annual sales, Applied Industrial Technologies places in the 10th spot on Industrial Distribution magazine’s Big 50 list of industrial distributors for 2009.
Friday, June 12, 2009
Grainger acquires Asia Pacific Brands
Broad-line distributor W.W. Grainger today announced it has signed a definitive agreement to acquire full ownership of Asia Pacific Brands
Jack Keough -- Industrial Distribution, 6/5/2009 1:09:52 PM
Broad-line distributor W.W. Grainger today announced it has signed a definitive agreement to acquire full ownership of its joint venture in India, Asia Pacific Brands India Private Limited, one of India's leading industrial and electrical wholesale distributors.
"We are excited about growing our business in India," said Grainger's chairman and chief executive officer Jim Ryan. "As that economy gets more competitive, Indian companies want efficient and reliable ways to get the quality products they need to keep their facilities running and their employees safe. With annual revenues of approximately $30 million, Asia Pacific will provide us a starting position in a large, high-potential MRO market."
Grainger will contribute an estimated $1.2 million to gain full ownership. Late last year, the company wrote down its investment due to the bankruptcy filing of Asia Pacific's largest supplier.
"Over the past six months, we have helped streamline Asia Pacific's operations, strengthen its management and enhance its supplier base. We will continue to make prudent investments in the business to deepen our presence in India's growing economy," said Bonnie McIntyre, vice president for Grainger's International Market Development. With more than 20 locations and more than 4,000 dealer relationships across India, Asia Pacific Brands plans to go to market under the Grainger brand.
Jack Keough -- Industrial Distribution, 6/5/2009 1:09:52 PM
Broad-line distributor W.W. Grainger today announced it has signed a definitive agreement to acquire full ownership of its joint venture in India, Asia Pacific Brands India Private Limited, one of India's leading industrial and electrical wholesale distributors.
"We are excited about growing our business in India," said Grainger's chairman and chief executive officer Jim Ryan. "As that economy gets more competitive, Indian companies want efficient and reliable ways to get the quality products they need to keep their facilities running and their employees safe. With annual revenues of approximately $30 million, Asia Pacific will provide us a starting position in a large, high-potential MRO market."
Grainger will contribute an estimated $1.2 million to gain full ownership. Late last year, the company wrote down its investment due to the bankruptcy filing of Asia Pacific's largest supplier.
"Over the past six months, we have helped streamline Asia Pacific's operations, strengthen its management and enhance its supplier base. We will continue to make prudent investments in the business to deepen our presence in India's growing economy," said Bonnie McIntyre, vice president for Grainger's International Market Development. With more than 20 locations and more than 4,000 dealer relationships across India, Asia Pacific Brands plans to go to market under the Grainger brand.
Grainger sales drop 10 percent in May
Grainger's May 2009 sales dropped 10 percent versus May 2008
Victoria Fraza Kickham -- Industrial Distribution, 6/8/2009 1:14:01 PM
Grainger reported today that its May 2009 sales for the United States versus last May dropped 10 percent, largely due to weak demand across all customer end-markets and geographies. Foreign exchange negatively affected sales by about two percentage points.
Sales from pandemic related products as a result of the H1N1 virus outbreak positively affected sales by one percentage point.
Sales in Canada during May dropped 14 percent compared to May 2008. One percent of that drop was reflected in local currency. Grainger's other businesses dropped 17 percent.
Victoria Fraza Kickham -- Industrial Distribution, 6/8/2009 1:14:01 PM
Grainger reported today that its May 2009 sales for the United States versus last May dropped 10 percent, largely due to weak demand across all customer end-markets and geographies. Foreign exchange negatively affected sales by about two percentage points.
Sales from pandemic related products as a result of the H1N1 virus outbreak positively affected sales by one percentage point.
Sales in Canada during May dropped 14 percent compared to May 2008. One percent of that drop was reflected in local currency. Grainger's other businesses dropped 17 percent.
The DoAll company gains metalworking customer base
Jack Keough -- Industrial Distribution, 6/10/2009 2:49:26 PM
DGI Supply, a DoAll company, has signed an affiliation agreement with Tool Crib Supply, Bensenville, Ill., allowing DGI to hire all of Tool Crib's employees and take over its metalworking customer base.
DGI Supply plans to combine its inventory with Tool Crib Supply's, while moving all order fulfillment to its Wheeling, Ill. location.
"The combined inventory will improve service levels and with DGI's automated warehousing systems improve efficiency while reducing errors," said Bill Henricks, COO of DoAll.
With 55 locations, DGI Supply ranked 26th on Industrial Distribution's 2009 Big 50 distributors list.
DGI Supply, a DoAll company, has signed an affiliation agreement with Tool Crib Supply, Bensenville, Ill., allowing DGI to hire all of Tool Crib's employees and take over its metalworking customer base.
DGI Supply plans to combine its inventory with Tool Crib Supply's, while moving all order fulfillment to its Wheeling, Ill. location.
"The combined inventory will improve service levels and with DGI's automated warehousing systems improve efficiency while reducing errors," said Bill Henricks, COO of DoAll.
With 55 locations, DGI Supply ranked 26th on Industrial Distribution's 2009 Big 50 distributors list.
Monday, June 1, 2009
Industrial Distribution Magazines Top 50 Distributors
Jack Keough and Industrial Distributions Mag hits it again with their great update on the Top 50 distributors. Check out Keoughs Korner as well.
Wednesday, May 27, 2009
Grainger 2009 Fact Book for Investors Now Posted Online
The 2009 Fact Book is now available online at http://www.grainger.com/investor. This "book" has been published for a number of years and is produced annually to share key facts and highlights; it provides a greater understanding of Grainger's business and investment profile.
Friday, May 22, 2009
Airgas raises quarterly dividend by 13 percent
RADNOR, Pa. - Industrial gas maker Airgas Inc. on Tuesday said it raised its quarterly cash dividend by 13 percent to 18 cents per share from 16 cents per share.
The dividend is payable June 30 to shareholders of record as of June 15.
"This dividend increase is a way to reward our shareholders in a tough environment," Chairman and Chief Executive Peter McCausland said in a statement.
Shares rose 41 cents to close at $43.06.
The dividend is payable June 30 to shareholders of record as of June 15.
"This dividend increase is a way to reward our shareholders in a tough environment," Chairman and Chief Executive Peter McCausland said in a statement.
Shares rose 41 cents to close at $43.06.
Wednesday, May 20, 2009
Motion Industries Acquires General Tool and Supply
Motion Industries has acquired General Tool and Supply, a regional industrial supplies distributor, headquartered in Portland, Oregon and its subsidiary Industrial Tool and Supply headquartered in Tucson, Arizona.
Jack Keough -- Industrial Distribution, 5/7/2009 2:31:33 PM
Motion Industries has acquired General Tool and Supply, a regional industrial supplies distributor, headquartered in Portland, Oregon and its subsidiary Industrial Tool and Supply headquartered in Tucson, Arizona. General Tool and Supply Company has four locations in Oregon, Washington, and Idaho; and Industrial Tool and Supply has two locations in Arizona.
Bill Derville, President; Jim Miller, Executive Vice President Sales and Marketing; and Rick Parlett, President Industrial Tool and Supply will remain as the leadership team and continue to manage the business as General Tool and Supply and Industrial Tool and Supply.
General Tool stocks in excess of 35,000 items of hand tools, power tools, precision tools, cutting tools, electronics tools and supplies, construction tools, abrasives, hoists, safety supplies, chemicals, and janitorial supplies. General Tool and Supply was recognized as one of the 5,000 fastest growing companies in America by Inc. Magazine in 2008. They distribute products from over 500 manufacturers.
General Tool and Supply's customers include aerospace, pulp and paper mills, general manufacturing plants, machine shops, foundries, electronic manufacturers, steel mills, construction companies, and government agencies. Industrial Tool and Supply customers include copper mines, general manufacturing, machine shops, contractors, and electronic manufacturers.
With 2008 sales of $3.5 billion, Motion Industries is a leading industrial parts distributor of bearings, mechanical power transmission, electrical automation, hydraulic and industrial hose, hydraulic and pneumatic components, industrial supplies, and material handling. Motion Industries has more than 500 operations including eight distribution centers throughout North America and serves more than 100,000 customers from the chemical, food and beverage, wood and lumber, iron and steel, pulp and paper, mining and aggregate, petrochemical, automotive and pharmaceutical industries.
Motion Industries is a wholly owned subsidiary of Genuine Parts Company (NYSE:GPC)..
Jack Keough -- Industrial Distribution, 5/7/2009 2:31:33 PM
Motion Industries has acquired General Tool and Supply, a regional industrial supplies distributor, headquartered in Portland, Oregon and its subsidiary Industrial Tool and Supply headquartered in Tucson, Arizona. General Tool and Supply Company has four locations in Oregon, Washington, and Idaho; and Industrial Tool and Supply has two locations in Arizona.
Bill Derville, President; Jim Miller, Executive Vice President Sales and Marketing; and Rick Parlett, President Industrial Tool and Supply will remain as the leadership team and continue to manage the business as General Tool and Supply and Industrial Tool and Supply.
General Tool stocks in excess of 35,000 items of hand tools, power tools, precision tools, cutting tools, electronics tools and supplies, construction tools, abrasives, hoists, safety supplies, chemicals, and janitorial supplies. General Tool and Supply was recognized as one of the 5,000 fastest growing companies in America by Inc. Magazine in 2008. They distribute products from over 500 manufacturers.
General Tool and Supply's customers include aerospace, pulp and paper mills, general manufacturing plants, machine shops, foundries, electronic manufacturers, steel mills, construction companies, and government agencies. Industrial Tool and Supply customers include copper mines, general manufacturing, machine shops, contractors, and electronic manufacturers.
With 2008 sales of $3.5 billion, Motion Industries is a leading industrial parts distributor of bearings, mechanical power transmission, electrical automation, hydraulic and industrial hose, hydraulic and pneumatic components, industrial supplies, and material handling. Motion Industries has more than 500 operations including eight distribution centers throughout North America and serves more than 100,000 customers from the chemical, food and beverage, wood and lumber, iron and steel, pulp and paper, mining and aggregate, petrochemical, automotive and pharmaceutical industries.
Motion Industries is a wholly owned subsidiary of Genuine Parts Company (NYSE:GPC)..
HD Supply White Cap acquires Orco Construction Supply
Deal expands HD Supply's presence in California, Arizona and Nevada
Victoria Fraza Kickham -- Industrial Distribution, 5/20/2009 2:06:18 PM
HD Supply White Cap said Wednesday it purchased the assets of Livermore, Calif.-based Orco Construction Supply. The deal expands HD Supply's coverage in California, Arizona and Nevada.
Orco, a construction supplies distributor with 11 distribution centers and two rebar facilities, filed for Chapter 11 bankruptcy protection earlier this year. In April, the distributor announced plans to sell to ACSP LLC, an entity run by White Cap founder and former executive Greg Grosch. White Cap was sold to The Home Depot in 2004 and became part of its HD Supply business, which was spun off in 2007.
The deal was contingent upon ACSP obtaining final financing and subject to an overbid process as part of the bankruptcy proceedings. Subsequently, HD Supply bid on and purchased Orco, according to an HD Supply spokesperson.
"The acquisition of ORCO's assets provides HD Supply White Cap with an increased ability to provide world-class service to our existing and prospective customers," said Tom Lazzaro, president, HD Supply White Cap. "It further strengthens our leading position in an important region with strong growth potential."
ORCO Construction Supply will be fully integrated into the HD Supply White Cap business and will begin operating under the HD Supply White Cap brand following the closing of the transaction.
Victoria Fraza Kickham -- Industrial Distribution, 5/20/2009 2:06:18 PM
HD Supply White Cap said Wednesday it purchased the assets of Livermore, Calif.-based Orco Construction Supply. The deal expands HD Supply's coverage in California, Arizona and Nevada.
Orco, a construction supplies distributor with 11 distribution centers and two rebar facilities, filed for Chapter 11 bankruptcy protection earlier this year. In April, the distributor announced plans to sell to ACSP LLC, an entity run by White Cap founder and former executive Greg Grosch. White Cap was sold to The Home Depot in 2004 and became part of its HD Supply business, which was spun off in 2007.
The deal was contingent upon ACSP obtaining final financing and subject to an overbid process as part of the bankruptcy proceedings. Subsequently, HD Supply bid on and purchased Orco, according to an HD Supply spokesperson.
"The acquisition of ORCO's assets provides HD Supply White Cap with an increased ability to provide world-class service to our existing and prospective customers," said Tom Lazzaro, president, HD Supply White Cap. "It further strengthens our leading position in an important region with strong growth potential."
ORCO Construction Supply will be fully integrated into the HD Supply White Cap business and will begin operating under the HD Supply White Cap brand following the closing of the transaction.
Monday, May 11, 2009
More on George Hayward
The article/posting below this one tells a great history of my friend and colleague George Hayward. The word icon probably doesn't really tell the story on Georgie. George was bigger than life. It doesn't matter if you loved George and hung on his every word or you disagreed with George - George was George and you knew where he stood. Always respectful, always confident and never short on words. Many people are found to not be short on words but also not have much of value to say. Not George, when he spoke he most likely had an idea, a thought, a suggestion etc that was going to be of value to you. If not today, sometime down the road it would come back to you.
Dave Johnsons description and history of George in the posting below is a great one. Other trade publications have published similar info but Dave did a great job in describing our friend and colleague. My experience with George goes back to the late 1980's. I was working for Zee Medical here in Irvine as a National Manager and George and I met at the Industrial Hygiene show.
In those days I didn't really understand the role of an Independent Rep but George was certainly willing to help me understand. Little did I know that in 1993 I would strike out on my own and start my own rep agency. Early on I had George and his experience, thoughts, opinions and relationships to help mentor me whenever I asked. George always knew "the guy to talk to" and was always willing to share and support. George knew the strengths and weaknesses of a company and the ins and outs of representing them in the market. You could always count on George.
Over the years every time I had a question I knew I could count on George and I was fortunate to get to know his two boys Tom (Tommy to me) and Todd as well. Over time I got to consider Tommy and Todd as friends along with their dad George. In 2003 when I left the rep biz and joined Tim McDuffie at STARDUST Spill Products I started to interview rep agencies. Guess who I called first? You bet-George and United Sales Associates.
I will never forget the first NSC show that Tim and I did. We were so focused on demo'ing our products to end users that when George, Todd, Tommy, Mark, Paul.......... stopped by our booth the Icon George couldn't figure out why the 6'8' Tim didn't have time for him and kept swirling that damn broom. Tim was selling and George was selling-they just were selling different things and to different people but in the same space and time. Somewhere we needed a buyer. Georgie stormed off! A year later or so our company hired (or maybe they agreed to pioneer our new line of products) George and the team and and I have enjoyed watching Tim and George reminisce that moment at the NSC show with guttural laughs a number of times.
As Tommy and Todd along with Mark and Paul have driven the business ahead I have enjoyed watching George slow down a bit and do his writing, his travel and pontificate on the state of the state. George and I have had many a conversation about contracts, product profiles, markets, channels, etc etc etc. As our business has grown over the past few years and I became a family man I havent had the same opportunity to take advantage of the sage advice of George as often as I'd like. Of course it wasnt always easy to find the jetsetter either-London, Dusseldorf, Napa, Florida.......!
I will miss George, I will miss knowing he is there for a question here and there. I will miss George holding up his numbered plaques during the USA Invitaional telling me how many minutes left in my presentation. I will miss George holding court at a lunch table at the back of the NSC or IH show. I will miss reading his writings. What I am happy for is the time that I did get to share with George and I am happy that I continue to work with his sons and his team.
I know that hundreds and hundreds of people have shared their love and thoughts with Mo, Tom and Todd in the past few weeks and I hope that soon their tears will turn to smiles when they remember the lives and careers that George touched-mine included!
Dave Johnsons description and history of George in the posting below is a great one. Other trade publications have published similar info but Dave did a great job in describing our friend and colleague. My experience with George goes back to the late 1980's. I was working for Zee Medical here in Irvine as a National Manager and George and I met at the Industrial Hygiene show.
In those days I didn't really understand the role of an Independent Rep but George was certainly willing to help me understand. Little did I know that in 1993 I would strike out on my own and start my own rep agency. Early on I had George and his experience, thoughts, opinions and relationships to help mentor me whenever I asked. George always knew "the guy to talk to" and was always willing to share and support. George knew the strengths and weaknesses of a company and the ins and outs of representing them in the market. You could always count on George.
Over the years every time I had a question I knew I could count on George and I was fortunate to get to know his two boys Tom (Tommy to me) and Todd as well. Over time I got to consider Tommy and Todd as friends along with their dad George. In 2003 when I left the rep biz and joined Tim McDuffie at STARDUST Spill Products I started to interview rep agencies. Guess who I called first? You bet-George and United Sales Associates.
I will never forget the first NSC show that Tim and I did. We were so focused on demo'ing our products to end users that when George, Todd, Tommy, Mark, Paul.......... stopped by our booth the Icon George couldn't figure out why the 6'8' Tim didn't have time for him and kept swirling that damn broom. Tim was selling and George was selling-they just were selling different things and to different people but in the same space and time. Somewhere we needed a buyer. Georgie stormed off! A year later or so our company hired (or maybe they agreed to pioneer our new line of products) George and the team and and I have enjoyed watching Tim and George reminisce that moment at the NSC show with guttural laughs a number of times.
As Tommy and Todd along with Mark and Paul have driven the business ahead I have enjoyed watching George slow down a bit and do his writing, his travel and pontificate on the state of the state. George and I have had many a conversation about contracts, product profiles, markets, channels, etc etc etc. As our business has grown over the past few years and I became a family man I havent had the same opportunity to take advantage of the sage advice of George as often as I'd like. Of course it wasnt always easy to find the jetsetter either-London, Dusseldorf, Napa, Florida.......!
I will miss George, I will miss knowing he is there for a question here and there. I will miss George holding up his numbered plaques during the USA Invitaional telling me how many minutes left in my presentation. I will miss George holding court at a lunch table at the back of the NSC or IH show. I will miss reading his writings. What I am happy for is the time that I did get to share with George and I am happy that I continue to work with his sons and his team.
I know that hundreds and hundreds of people have shared their love and thoughts with Mo, Tom and Todd in the past few weeks and I hope that soon their tears will turn to smiles when they remember the lives and careers that George touched-mine included!
Everyone’s “Partner in Safety,” George Hayward, dies at 67
May 4, 2009
George J. Hayward, 67, an icon in the tight-knit U.S. safety products industry, passed away on May 1, 2009, after a brief illness. George’s stature and influence extended far beyond the eight states served by the safety products manufacturers representatives of his company, United Sales Associates, founded by George in 1982 and based in Cincinnati. Beginning in March, 1997, George wrote a regular column (67 in total) for ISHN’s “For Distributors Only” supplement, prodding the safety products industry to see and seize the positive contributions it could deliver by being a holistic, integrated partnership of manufacturers, distributors, manufacturers’ reps, workplace safety and health professionals, regulators, and professional and trade associations. George had other “pet passions”: to think globally, to think beyond compliance selling, to make the business case for safety, and to think of new ways of servicing and educating safety and health professionals who purchase his industry’s products. In his first column for ISHN, George wrote: “In safety the heroes are not the doctors who repair those who have been injured but those who prevent the injuries in the first place! Those "Partners in Prevention" that Rick (Fulwiler) speaks to, those industrial hygienists, safety engineers, and the safety sales professionals - these are the heroes who prevent injuries and are truly the "Partners in Prevention." Here's to you all! - the real heroes!” In 1996, George was appointed to serve on the SEDA (Safety Equipment Distributors Association.), ISEA (International Safety Equipment Association.) and SEMAA Joint Committee on Education, a coalition responsible for creating and marketing the “Qualified Safety Sales Professional” (QSSP) program. QSSP is a week-long safety and health technical and regulatory fundamentals course, held twice each year, for sales and marketing professionals involved in the manufacture and distribution of safety equipment. The QSSP faculty, headed until his recent retirement as course director, by Dr. Rick Fulwiler, former director of Procter & Gamble Worldwide Safety and Health, has taught more than 700 graduates, increasing their knowledge base and raising their service capabilities to the benefit of thousands of worksite safety and health pros. QSSP classes have grown steadily in popularity, now selling out regularly. Thousands of safety and health professionals in the U.S. have benefited from George’s work and passion for safety without ever knowing who he was. George was a power-broker; a thought-provoking, humorous, extremely well-connected large man, almost larger-than-life to those who knew him. For most safety and health professionals, George’s work and contributions occurred behind the scenes, without their direct knowledge. More than an entrepreneur, George was one of the most visible and active leaders of the safety products community of manufacturers, distributors, purchasers and users; a tireless networker and alliance builder; a committed educator; a proponent of harmonized global safety and health regulations and closer working relationships between global safety and health associations; and a staunch advocate for protecting workers on the job. At trade shows such as the National Safety Congress, the American Industrial Hygiene Conference and Expo, and the American Society of Safety Engineers’ annual conference, George strolled the aisle joking, back-slapping, and conversing with his many friends as a sort of unofficial mayor of the expo floor. George was also a regular presence at industry meetings sponsored by the International Safety Equipment Association, the Safety Equipment Distributors Association, and the International Glove Association. George’s career in safety began in 1972 as a territory manager for Edmont-Wilson glove company, now Ansell Protective Products. In 1986, George was one of the founders and charter members of the Safety Equipment Manufacturers’ Agents Association (SEMAA), and served as its executive director and first president. In 1988, George was elected chairman of the National Industrial Glove Distributors Association (NIGDA) and served on its Hall of Fame Committee for 11 years. He was the first “rep” to be elected to the NIGDA Board, serving 8 years. In 1999, George was appointed MANA (Manufacturers’ Agents National Association) Manager of International Development to help guide MANA’s transition to a more global organization. MANA has a membership of approximately 4,000 rep agencies and 1,500 manufacturers in more than 25 countries. In 2001 George became the first non-European to be elected to the Board of IUCAB (International Union of Commercial Agents and Brokers). He served three terms ending in 2008. In 2005 he was elected to the MANA Board of Directors. In 2007, George was elected to serve on the MANA Board of Directors, Executive Committee. In 2008, he was also elected chairman of the MANA Board of Directors, Executive Committee. Founded by George in 1982, United Sales Associates, through its 13 field and inside sales reps, represents familiar product manufacturers such as Capital Safety fall protection, Haws emergency eyewash showers and fountains, Jackson Safety PPE, Lakeland Industries protective clothing, MAPA Professional gloves, Wells Lamont Industry Group gloves, and Justrite flammable storage containers. As manufacturers’ representatives, United Sales Associates operates as an independent sales and marketing contractor for the product lines of its principals (manufacturers), selling to distributors of safety products and making joint presentations with distributors to end-users of products (often worksite safety and health professionals). George is survived by his wife Ramona “Mo” Hayward (Steger), and his two sons Todd A. Hayward and Thomas J. Hayward, both employed at United Sales Associates.
George J. Hayward, 67, an icon in the tight-knit U.S. safety products industry, passed away on May 1, 2009, after a brief illness. George’s stature and influence extended far beyond the eight states served by the safety products manufacturers representatives of his company, United Sales Associates, founded by George in 1982 and based in Cincinnati. Beginning in March, 1997, George wrote a regular column (67 in total) for ISHN’s “For Distributors Only” supplement, prodding the safety products industry to see and seize the positive contributions it could deliver by being a holistic, integrated partnership of manufacturers, distributors, manufacturers’ reps, workplace safety and health professionals, regulators, and professional and trade associations. George had other “pet passions”: to think globally, to think beyond compliance selling, to make the business case for safety, and to think of new ways of servicing and educating safety and health professionals who purchase his industry’s products. In his first column for ISHN, George wrote: “In safety the heroes are not the doctors who repair those who have been injured but those who prevent the injuries in the first place! Those "Partners in Prevention" that Rick (Fulwiler) speaks to, those industrial hygienists, safety engineers, and the safety sales professionals - these are the heroes who prevent injuries and are truly the "Partners in Prevention." Here's to you all! - the real heroes!” In 1996, George was appointed to serve on the SEDA (Safety Equipment Distributors Association.), ISEA (International Safety Equipment Association.) and SEMAA Joint Committee on Education, a coalition responsible for creating and marketing the “Qualified Safety Sales Professional” (QSSP) program. QSSP is a week-long safety and health technical and regulatory fundamentals course, held twice each year, for sales and marketing professionals involved in the manufacture and distribution of safety equipment. The QSSP faculty, headed until his recent retirement as course director, by Dr. Rick Fulwiler, former director of Procter & Gamble Worldwide Safety and Health, has taught more than 700 graduates, increasing their knowledge base and raising their service capabilities to the benefit of thousands of worksite safety and health pros. QSSP classes have grown steadily in popularity, now selling out regularly. Thousands of safety and health professionals in the U.S. have benefited from George’s work and passion for safety without ever knowing who he was. George was a power-broker; a thought-provoking, humorous, extremely well-connected large man, almost larger-than-life to those who knew him. For most safety and health professionals, George’s work and contributions occurred behind the scenes, without their direct knowledge. More than an entrepreneur, George was one of the most visible and active leaders of the safety products community of manufacturers, distributors, purchasers and users; a tireless networker and alliance builder; a committed educator; a proponent of harmonized global safety and health regulations and closer working relationships between global safety and health associations; and a staunch advocate for protecting workers on the job. At trade shows such as the National Safety Congress, the American Industrial Hygiene Conference and Expo, and the American Society of Safety Engineers’ annual conference, George strolled the aisle joking, back-slapping, and conversing with his many friends as a sort of unofficial mayor of the expo floor. George was also a regular presence at industry meetings sponsored by the International Safety Equipment Association, the Safety Equipment Distributors Association, and the International Glove Association. George’s career in safety began in 1972 as a territory manager for Edmont-Wilson glove company, now Ansell Protective Products. In 1986, George was one of the founders and charter members of the Safety Equipment Manufacturers’ Agents Association (SEMAA), and served as its executive director and first president. In 1988, George was elected chairman of the National Industrial Glove Distributors Association (NIGDA) and served on its Hall of Fame Committee for 11 years. He was the first “rep” to be elected to the NIGDA Board, serving 8 years. In 1999, George was appointed MANA (Manufacturers’ Agents National Association) Manager of International Development to help guide MANA’s transition to a more global organization. MANA has a membership of approximately 4,000 rep agencies and 1,500 manufacturers in more than 25 countries. In 2001 George became the first non-European to be elected to the Board of IUCAB (International Union of Commercial Agents and Brokers). He served three terms ending in 2008. In 2005 he was elected to the MANA Board of Directors. In 2007, George was elected to serve on the MANA Board of Directors, Executive Committee. In 2008, he was also elected chairman of the MANA Board of Directors, Executive Committee. Founded by George in 1982, United Sales Associates, through its 13 field and inside sales reps, represents familiar product manufacturers such as Capital Safety fall protection, Haws emergency eyewash showers and fountains, Jackson Safety PPE, Lakeland Industries protective clothing, MAPA Professional gloves, Wells Lamont Industry Group gloves, and Justrite flammable storage containers. As manufacturers’ representatives, United Sales Associates operates as an independent sales and marketing contractor for the product lines of its principals (manufacturers), selling to distributors of safety products and making joint presentations with distributors to end-users of products (often worksite safety and health professionals). George is survived by his wife Ramona “Mo” Hayward (Steger), and his two sons Todd A. Hayward and Thomas J. Hayward, both employed at United Sales Associates.
Wednesday, April 29, 2009
Grainger names Ryan chairman of the board
W.W. Grainger's CEO and president James T. Ryan is promoted to chairman of the board, replacing Richard L. Keyser, who was named chairman emeritus
Victoria Fraza Kickham -- Industrial Distribution, 4/29/2009 1:44:53 PM
W. W. Grainger, Inc. announced Tuesday that CEO and president James T. Ryan will add the title and responsibilities of chairman of the board, effective immediately. He is succeeding Richard L. Keyser, who was named chairman emeritus and remains a member of the company's board of directors. Both men are standing for election to Grainger's board of directors Wednesday, April 29, 2009."Jim becomes chairman at a time that Grainger is poised to deliver even greater returns for its shareholders. He brings energy, discipline and passion to a company dedicated to providing great customer service. Jim's depth of industry experience and tenure with the company position him to lead Grainger into the future," Keyser said in a news release.Ryan was named CEO in June of 2008 and named chief operating officer and appointed to the board of directors in February 2007. He became president of Grainger in 2006.
Victoria Fraza Kickham -- Industrial Distribution, 4/29/2009 1:44:53 PM
W. W. Grainger, Inc. announced Tuesday that CEO and president James T. Ryan will add the title and responsibilities of chairman of the board, effective immediately. He is succeeding Richard L. Keyser, who was named chairman emeritus and remains a member of the company's board of directors. Both men are standing for election to Grainger's board of directors Wednesday, April 29, 2009."Jim becomes chairman at a time that Grainger is poised to deliver even greater returns for its shareholders. He brings energy, discipline and passion to a company dedicated to providing great customer service. Jim's depth of industry experience and tenure with the company position him to lead Grainger into the future," Keyser said in a news release.Ryan was named CEO in June of 2008 and named chief operating officer and appointed to the board of directors in February 2007. He became president of Grainger in 2006.
Thermo Fisher’s Q1 profit down 35%
Thermo Fisher’s Q1 profit down 35%
Boston Business Journal - by Julie M. Donnelly
Thursday, April 23, 2009
Thermo Fisher Scientific’s first quarter net income is off 35 percent, down to $148.9 million from $229.7 million during the same period last year. The Waltham, Mass.-based scientific instrument company is reporting its revenue for the first quarter was down 12 percent to $2.26 billion from $2.55 billion during the same period last year.
Thermo Fisher Scientific (NYSE: TMO) blamed the negative impact of currency exchange rates for 5 percent of the revenue loss, and said the rest was due to customers delaying purchasing of scientific equipment during the economic downturn.
The company has lowered its overall revenue guidance to between $9.6 and $9.9 billion, down $400 million from its previous forecast. Company officials said Thermo Fisher is focused on a combination of cost-cutting and strategic investment to improve its balance sheet.
Thermo Fisher’s stock sunk over 8 percent on the news, trading at $32.25 in mid-afternoon trading on Thursday, down from $35.19 at the previous day’s close.
Boston Business Journal - by Julie M. Donnelly
Thursday, April 23, 2009
Thermo Fisher Scientific’s first quarter net income is off 35 percent, down to $148.9 million from $229.7 million during the same period last year. The Waltham, Mass.-based scientific instrument company is reporting its revenue for the first quarter was down 12 percent to $2.26 billion from $2.55 billion during the same period last year.
Thermo Fisher Scientific (NYSE: TMO) blamed the negative impact of currency exchange rates for 5 percent of the revenue loss, and said the rest was due to customers delaying purchasing of scientific equipment during the economic downturn.
The company has lowered its overall revenue guidance to between $9.6 and $9.9 billion, down $400 million from its previous forecast. Company officials said Thermo Fisher is focused on a combination of cost-cutting and strategic investment to improve its balance sheet.
Thermo Fisher’s stock sunk over 8 percent on the news, trading at $32.25 in mid-afternoon trading on Thursday, down from $35.19 at the previous day’s close.
Applied Industrial fiscal third-quarter profit exceeds expectations
NAW SmartBrief 04/29/2009
Applied Industrial Technologies posted a profit of $11.6 million for the fiscal third quarter compared with $23.6 million for the third quarter of last year. The industrial-parts distributor's earnings per share of 27 cents exceeded analysts' expectations of 24 cents a share. "Sales generation and margin management will continue to be our greatest challenges for the near term as our customers respond to significant consumer withdrawal," CEO David Pugh said. Reuters (04/23) Plain Dealer (Cleveland), The (04/23)
http://www.smartbrief.com/news/naw/storyDetails.jsp?issueid=0BCA0F88-F165-42BB-8619-91DE99FC609B©id=441D239D-890C-429B-9FE9-11B86A46E78B
Applied Industrial Technologies posted a profit of $11.6 million for the fiscal third quarter compared with $23.6 million for the third quarter of last year. The industrial-parts distributor's earnings per share of 27 cents exceeded analysts' expectations of 24 cents a share. "Sales generation and margin management will continue to be our greatest challenges for the near term as our customers respond to significant consumer withdrawal," CEO David Pugh said. Reuters (04/23) Plain Dealer (Cleveland), The (04/23)
http://www.smartbrief.com/news/naw/storyDetails.jsp?issueid=0BCA0F88-F165-42BB-8619-91DE99FC609B©id=441D239D-890C-429B-9FE9-11B86A46E78B
Thursday, April 23, 2009
Danaher to lay off 2,300; close 16 facilities
Sales for diversified manufacturer Danaher Corp. drop 13 percent in first quarter; will accelerate cost reductions
Jack Keough -- Industrial Distribution, 4/23/2009 8:09:13 PM
The Danaher Corp. says revenues for the first quarter decreased roughly 13 percent year-over-year to $2.6 billion, with core revenues down 10 percent. The impact of currency reduced revenues by 5.5 percent, offset by acquisitions which contributed 2.5 percent to sales growth. Revenues also benefited from four extra days in the first quarter. The corresponding offset of days will be realized in the second and fourth quarters of this year.
"Given the (economic) environment, we are accelerating our cost reduction and restructuring activities, which now total $150 million to $170 million this year," Larry Culp, Danaher president and CEO told financial analysts in a conference call, according to a transcript provided by www.seekingalpha.com "These initiatives will result in the elimination of 2,300 positions and 16 facilities and provide annual cost savings of approximately $140 million. This is in addition to the more than $100 million of savings we discussed with you during our year-end call."
During the quarter, Danaher completed the acquisition of three companies, comprising about $50 million of annualized revenue to strengthen its environmental, test and measurement and sensors and controls businesses.
"We believe the acquisition environment is becoming more attractive and that we are well positioned to capitalize on strategic acquisition opportunities," Culp said.
Year-over-year gross margin for the first quarter increased approximately 110 basis points to 47.9 percent. Excluding the impact of prior-year Tektronix charges, gross margins were up slightly despite the revenue decline. This was primarily due to the impact of recent restructuring activities and lower raw material costs.
Mechanics hand tool core revenues declined 14 percent in the quarter, primarily due to lower sales to both the consumer and professional channels. Sales of Danaher's domestic China tool brand were also soft, although it saw sequential improvements through the quarter.
In March, Danaher was awarded a new multi-million dollar contract from the U.S. Marine Corps to supply tool kits, which it will begin shipping in the second quarter of this year.
"Our expectation is for the second quarter core revenues to be slightly worse than the first. And for the full year, we are forecasting core revenue declines approximately in line with our first-quarter decline of 10 percent," Culp said.
The $100 million to $120 million of additional restructuring charges are expected to reduce EPS by approximately $0.08 per share in the second quarter and $0.25 per share for the full year.
Jack Keough -- Industrial Distribution, 4/23/2009 8:09:13 PM
The Danaher Corp. says revenues for the first quarter decreased roughly 13 percent year-over-year to $2.6 billion, with core revenues down 10 percent. The impact of currency reduced revenues by 5.5 percent, offset by acquisitions which contributed 2.5 percent to sales growth. Revenues also benefited from four extra days in the first quarter. The corresponding offset of days will be realized in the second and fourth quarters of this year.
"Given the (economic) environment, we are accelerating our cost reduction and restructuring activities, which now total $150 million to $170 million this year," Larry Culp, Danaher president and CEO told financial analysts in a conference call, according to a transcript provided by www.seekingalpha.com "These initiatives will result in the elimination of 2,300 positions and 16 facilities and provide annual cost savings of approximately $140 million. This is in addition to the more than $100 million of savings we discussed with you during our year-end call."
During the quarter, Danaher completed the acquisition of three companies, comprising about $50 million of annualized revenue to strengthen its environmental, test and measurement and sensors and controls businesses.
"We believe the acquisition environment is becoming more attractive and that we are well positioned to capitalize on strategic acquisition opportunities," Culp said.
Year-over-year gross margin for the first quarter increased approximately 110 basis points to 47.9 percent. Excluding the impact of prior-year Tektronix charges, gross margins were up slightly despite the revenue decline. This was primarily due to the impact of recent restructuring activities and lower raw material costs.
Mechanics hand tool core revenues declined 14 percent in the quarter, primarily due to lower sales to both the consumer and professional channels. Sales of Danaher's domestic China tool brand were also soft, although it saw sequential improvements through the quarter.
In March, Danaher was awarded a new multi-million dollar contract from the U.S. Marine Corps to supply tool kits, which it will begin shipping in the second quarter of this year.
"Our expectation is for the second quarter core revenues to be slightly worse than the first. And for the full year, we are forecasting core revenue declines approximately in line with our first-quarter decline of 10 percent," Culp said.
The $100 million to $120 million of additional restructuring charges are expected to reduce EPS by approximately $0.08 per share in the second quarter and $0.25 per share for the full year.
Applied's Q3 sales drop 15 percent
Bearings and power transmission distributor expects no relief in 2009
Victoria Fraza Kickham -- Industrial Distribution, 4/23/2009 3:25:49 PM
In keeping with the tough economic climate, Applied Industrial Technologies announced a drop in sales and earnings for its fiscal third quarter on Wednesday.
The bearings and power transmission products distributor's sales dropped 14.8 percent, to $451.6 million, and earnings declined 51 percent, to $11.6 million, compared to the same period in 2008.
For the nine months ended March 31, 2009, Applied's sales were $1.5 billion, down 4 percent compared to the same period in 2008; net income for the period was down 29 percent and earnings per share declined nearly 28 percent to $1.17.
Applied's chairman and CEO David L. Pugh said the results were no surprise and pointed to sales generation and margin management as the company's greatest challenges in the current environment.
"In light of this, we have made prudent moves to reduce costs in line with demand, with a strong focus on asset management. As a result, our cash generation continues to be strong, which puts us in a solid strategic position going forward," Pugh said in a statement announcing the results. "The future remains difficult to forecast as the economic turmoil continues. At this time, we see no relief in this calendar year. ..."
Pugh re-affirmed the company's full-year earnings guidance of $1.30 to $1.70 per share and said sales should be at, or close to, the low end of its guidance of $1.95 billion to $2.1 billion.
Victoria Fraza Kickham -- Industrial Distribution, 4/23/2009 3:25:49 PM
In keeping with the tough economic climate, Applied Industrial Technologies announced a drop in sales and earnings for its fiscal third quarter on Wednesday.
The bearings and power transmission products distributor's sales dropped 14.8 percent, to $451.6 million, and earnings declined 51 percent, to $11.6 million, compared to the same period in 2008.
For the nine months ended March 31, 2009, Applied's sales were $1.5 billion, down 4 percent compared to the same period in 2008; net income for the period was down 29 percent and earnings per share declined nearly 28 percent to $1.17.
Applied's chairman and CEO David L. Pugh said the results were no surprise and pointed to sales generation and margin management as the company's greatest challenges in the current environment.
"In light of this, we have made prudent moves to reduce costs in line with demand, with a strong focus on asset management. As a result, our cash generation continues to be strong, which puts us in a solid strategic position going forward," Pugh said in a statement announcing the results. "The future remains difficult to forecast as the economic turmoil continues. At this time, we see no relief in this calendar year. ..."
Pugh re-affirmed the company's full-year earnings guidance of $1.30 to $1.70 per share and said sales should be at, or close to, the low end of its guidance of $1.95 billion to $2.1 billion.
Praxair Distribution acquires packaged gas companies
Alabama, Texas operations are added to southern region
Industrial Distribution Staff -- Industrial Distribution, 4/21/2009 1:41:27 PM
Praxair Distribution Inc., a subsidiary of Praxair, Inc., has acquired Alabama Welding Supply of Dolomite, Ala. Fowler Brothers of Birmingham, Ala., and Service Gas Supply of Midlothian, Texas. Terms of the agreement were not disclosed.
The operations will be integrated into Praxair Distribution's southern region. The division supplies industrial, specialty and medical gases and related equipment from 500 locations in the U.S. and Canada.
"We continue to execute our strategy of acquiring high quality distribution businesses that fit our portfolio while maintaining our strict return criteria," said George Ristevski, president of Praxair Distribution, in a company press release.
Industrial Distribution Staff -- Industrial Distribution, 4/21/2009 1:41:27 PM
Praxair Distribution Inc., a subsidiary of Praxair, Inc., has acquired Alabama Welding Supply of Dolomite, Ala. Fowler Brothers of Birmingham, Ala., and Service Gas Supply of Midlothian, Texas. Terms of the agreement were not disclosed.
The operations will be integrated into Praxair Distribution's southern region. The division supplies industrial, specialty and medical gases and related equipment from 500 locations in the U.S. and Canada.
"We continue to execute our strategy of acquiring high quality distribution businesses that fit our portfolio while maintaining our strict return criteria," said George Ristevski, president of Praxair Distribution, in a company press release.
Sunday, April 19, 2009
Grainger to host "green" seminars in 25 markets
MRO distributor also launches green catalog featuring more than 3,000 products
Victoria Fraza Kickham -- Industrial Distribution, 4/17/2009 4:26:35 PM
In honor of Earth Day, April 22, MRO distributor W.W. Grainger will host "green" educational events for customers in 25 U.S. markets. The company also launched a new green online catalog featuring more than 3,000 environmentally responsible products.
The educational events are designed to help customers learn about green products and environmental sustainability, according to Grainger. They will be held in late April and early May. The green online catalog features products from Green Seal, EcoLogo, NEMA Premium and Energy Star as well as items that can be used to earn credits toward LEED (Leadership in Energy and Environmental Design) certification.
Grainger said its green efforts reflect the company's internal commitment to environmental sustainability as well. The distributor opened its first two LEED certified branches last year, in New Iberia and Gonzales, La., and has said it will build new facilities to the LEED standard.
Victoria Fraza Kickham -- Industrial Distribution, 4/17/2009 4:26:35 PM
In honor of Earth Day, April 22, MRO distributor W.W. Grainger will host "green" educational events for customers in 25 U.S. markets. The company also launched a new green online catalog featuring more than 3,000 environmentally responsible products.
The educational events are designed to help customers learn about green products and environmental sustainability, according to Grainger. They will be held in late April and early May. The green online catalog features products from Green Seal, EcoLogo, NEMA Premium and Energy Star as well as items that can be used to earn credits toward LEED (Leadership in Energy and Environmental Design) certification.
Grainger said its green efforts reflect the company's internal commitment to environmental sustainability as well. The distributor opened its first two LEED certified branches last year, in New Iberia and Gonzales, La., and has said it will build new facilities to the LEED standard.
Wednesday, April 15, 2009
Fastenal sales drop 13.6 percent for first quarter
Company will slow down its store openings
Jack Keough -- Industrial Distribution, 4/14/2009 2:06:06 PM
Jack Keough -- Industrial Distribution, 4/14/2009 2:06:06 PM
___________________________________________________
The Fastenal Company reported today that net sales for the three-month period ended March 31, 2009 totaled $489,347, a decrease of 13.6% from net sales of $566,210 in the first quarter of 2008. Net earnings decreased from $68,094 in the first quarter of 2008 to $48,695 in the first quarter of 2009, a decrease of 28.5%.
During the first quarter of 2009, Fastenal opened 33 new stores (Fastenal opened 53 new stores in the first quarter of 2008). These 33 new stores represent an increase of 1.4% since December 31, 2008. (Fastenal had 2,311 stores on December 31, 2008.) There were 12,736 total employees as of March 31, 2008, a decrease of 6.6% from December 31, 2008 and an increase of 1.6% from March 31, 2008.
The economic downturn is having its effect in Fastenal. In a press release the company said: "These impacts have negatively affected our sales, particularly related to our industrial production business (business where we supply products that become part of the finished goods produced by others). We remain practical optimists and we always attempt to balance long-term opportunities for growth with the necessary short-term reactions to our current reality. In this regard, we have temporarily slowed our store openings to a range of 2% to 5% new stores per year and we have stopped adding any headcount except for store openings and for stores that are growing. Over the last several years, our 'pathway to profit' initiative has slowly altered our cost structure in that a greater portion is now variable versus fixed. This has helped us today as we navigate through the current economic environment."
Tuesday, April 14, 2009
Grainger sales drop 12 percent for first quarter compared to ‘08
Grainger reduces headcount; further sales decline expected
Jack Keough -- Industrial Distribution, 4/14/2009 2:01:07 PM
W.W. Grainger reported today first quarter sales of $1.5 billion, down 12 percent versus first quarter 2008. Net earnings for the quarter decreased 16 percent to $96 million versus $114 million in 2008. The company said earnings per share declined by 11 percent to $1.25 versus $1.41 for first quarter 2008.
"Businesses and institutions have responded to the recession by buying less and looking for ways to improve productivity. We are in a great position to help our customers become more efficient by consolidating their supplier base using our expanded product line especially in these challenging times," said Grainger's president and CEO Jim Ryan in a press release. "We are keeping service levels high as other competitors are pulling back, as we have the ability to selectively invest in the business in order to gain more market share."
Ryan added, "We do not believe that we've seen the bottom to the sales decline and expect increased pricing pressure throughout the remainder of the year. Given our financial strength, we see an opportunity to gain more share. We expect to incur some reductions to our margins by expanding our sales force and implementing additional customer incentives in the second quarter. We expect these actions to cost $25-50 million this year. We'll calibrate our level of investment in the back half of the year based on our success."
Daily sales for Grainger decreased 9 percent in January, 10 percent in February and 12 percent in March. For the quarter, sales were negatively affected by foreign exchange, which contributed approximately 2 percentage points to the decline. Price contributed a positive 6 percent while volume was down 14 percent. There were 63 selling days in the quarter, one less than in 2008 first quarter.
Effective with the first quarter, the company has two reportable business segments, the United States and Canada, which represent approximately 99 percent of company sales. This new reporting reflects the integration of Lab Safety Supply with Grainger's U.S. branch-based business. The remaining operating units (Mexico, China, Panama and Puerto Rico) are included in other businesses and are not considered a segment.
Jack Keough -- Industrial Distribution, 4/14/2009 2:01:07 PM
W.W. Grainger reported today first quarter sales of $1.5 billion, down 12 percent versus first quarter 2008. Net earnings for the quarter decreased 16 percent to $96 million versus $114 million in 2008. The company said earnings per share declined by 11 percent to $1.25 versus $1.41 for first quarter 2008.
"Businesses and institutions have responded to the recession by buying less and looking for ways to improve productivity. We are in a great position to help our customers become more efficient by consolidating their supplier base using our expanded product line especially in these challenging times," said Grainger's president and CEO Jim Ryan in a press release. "We are keeping service levels high as other competitors are pulling back, as we have the ability to selectively invest in the business in order to gain more market share."
Ryan added, "We do not believe that we've seen the bottom to the sales decline and expect increased pricing pressure throughout the remainder of the year. Given our financial strength, we see an opportunity to gain more share. We expect to incur some reductions to our margins by expanding our sales force and implementing additional customer incentives in the second quarter. We expect these actions to cost $25-50 million this year. We'll calibrate our level of investment in the back half of the year based on our success."
Daily sales for Grainger decreased 9 percent in January, 10 percent in February and 12 percent in March. For the quarter, sales were negatively affected by foreign exchange, which contributed approximately 2 percentage points to the decline. Price contributed a positive 6 percent while volume was down 14 percent. There were 63 selling days in the quarter, one less than in 2008 first quarter.
Effective with the first quarter, the company has two reportable business segments, the United States and Canada, which represent approximately 99 percent of company sales. This new reporting reflects the integration of Lab Safety Supply with Grainger's U.S. branch-based business. The remaining operating units (Mexico, China, Panama and Puerto Rico) are included in other businesses and are not considered a segment.
How Sales Managers can survive price warfare
http://indusperfgrp.com/nsltr48.htm Industrial Performance Group-Helping Manufacturers And Distributors Improve Sales Performance And Profitability
Robert Nadeau gives some good examples of Price vs. Value and Quality selling. While at the end of this article there is a place for you to contact them for their training services the article is thought provoking in how we go to market! Take a look-there are some good points on selling "value" in financial terms vs 'just value'.
Robert Nadeau gives some good examples of Price vs. Value and Quality selling. While at the end of this article there is a place for you to contact them for their training services the article is thought provoking in how we go to market! Take a look-there are some good points on selling "value" in financial terms vs 'just value'.
Friday, April 10, 2009
When will it end! Another distributor shuts location and lays off staff!
Industrial distributor announces further cost-cutting measures, reducing headcount by 11 percent and closing its Dallas distribution center
Victoria Fraza Kickham -- Industrial Distribution, 4/7/2009 3:04:34 PM
In an effort to further reduce costs, Des Plaines, Ill.-based distributor Lawson Products will cut 150 employees, or 11 percent of its workforce, and close its Dallas distribution center by the end of the second quarter.
The news follows the previously announced closing of Lawson's Charlotte, N.C., distribution facility.
The cuts will cost between $5.5 and $7 million and are expected to generate $10 million to $12 million in annual savings, according to statements filed with the Securities and Exchange Commission in late March.
Victoria Fraza Kickham -- Industrial Distribution, 4/7/2009 3:04:34 PM
In an effort to further reduce costs, Des Plaines, Ill.-based distributor Lawson Products will cut 150 employees, or 11 percent of its workforce, and close its Dallas distribution center by the end of the second quarter.
The news follows the previously announced closing of Lawson's Charlotte, N.C., distribution facility.
The cuts will cost between $5.5 and $7 million and are expected to generate $10 million to $12 million in annual savings, according to statements filed with the Securities and Exchange Commission in late March.
HD Supply Launches New Catalog
Distributor's Facilities Maintenance group adds 2,800 products to 1,600-page MRO catalog
Victoria Fraza Kickham -- Industrial Distribution, 4/7/2009 3:36:52 PM
HD Supply Facilities Maintenance released its 2009 catalog containing 20,000 MRO products. The annual catalog features more than 1,600 pages of products, value-added services, trade tips and technical information for customers in the multifamily housing and hospitality industries.
The 2009 catalog contains 2,800 new products and focuses on providing solutions to customers' maintenance and renovation needs, according to company leaders.
"Now more than ever in these tough economic times, our customers are looking to us to provide them with choices," said Anesa Chaibi, president of HD Supply Facilities Maintenance. "We are committed to offering our customers good, better and best product alternatives, exceptional customer service and next-day delivery."
The catalog is available at http://www.hdsupplysolutions.com/.
Victoria Fraza Kickham -- Industrial Distribution, 4/7/2009 3:36:52 PM
HD Supply Facilities Maintenance released its 2009 catalog containing 20,000 MRO products. The annual catalog features more than 1,600 pages of products, value-added services, trade tips and technical information for customers in the multifamily housing and hospitality industries.
The 2009 catalog contains 2,800 new products and focuses on providing solutions to customers' maintenance and renovation needs, according to company leaders.
"Now more than ever in these tough economic times, our customers are looking to us to provide them with choices," said Anesa Chaibi, president of HD Supply Facilities Maintenance. "We are committed to offering our customers good, better and best product alternatives, exceptional customer service and next-day delivery."
The catalog is available at http://www.hdsupplysolutions.com/.
Could the Fed Stimulus Plan help Distributors?
Consultant: Stimulus plan may provide $200 billion boost to distributorsThe economic stimulus package could provide more than $200 billion for distributors, according to Pembroke Consulting President and NAW Institute for Distribution Excellence Fellow Adam J. Fein, Ph.D. "The requirement is that the use of all the funds is transparent to the public, and the public benefits of these funds are reported clearly, accurately and in a timely manner," Fein said during a recent Webcast. The deadline for obligating the stimulus funds is March 5. Modern Distribution Management
Why the new BLOG
We developed this blog to post info relating to the spill containment, spill control and spill cleanup product arena. STARDUST Spill Products manufacturers a complete family of products relating to storing, dispensing, controlling and cleaning up after spills. Whether one works on a super tanker, at a chemical plant, a fire department or just wants to be able to take care of spills and stains at home we have the products needed.
STARDUST Spill Products is a 15 yr old company based in Santa Ana California. Starting with our flagship product STARDUST Super Absorbent(tm) we have developed into a company with over 100 different and unique solutions. Our products are featured for sale through some of the worlds premiere distributors of such products to include W.W. Grainger, Fastenal, Ace Hardware, True Value Hardware and many many others.
Keep track of this blog by subscribing or just checking back when you like to see info on products, industry updates, distribution trends, regulatory updates and whatever other topics pop up.
You can also see our products at http://www.stardustspillproducts.com/ or follow us at www.twitter.com/stardust4spills
Kevin L. Brown - Vice President/Partner
kbrown@stardustspillproducts.com
STARDUST Spill Products is a 15 yr old company based in Santa Ana California. Starting with our flagship product STARDUST Super Absorbent(tm) we have developed into a company with over 100 different and unique solutions. Our products are featured for sale through some of the worlds premiere distributors of such products to include W.W. Grainger, Fastenal, Ace Hardware, True Value Hardware and many many others.
Keep track of this blog by subscribing or just checking back when you like to see info on products, industry updates, distribution trends, regulatory updates and whatever other topics pop up.
You can also see our products at http://www.stardustspillproducts.com/ or follow us at www.twitter.com/stardust4spills
Kevin L. Brown - Vice President/Partner
kbrown@stardustspillproducts.com
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