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.

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.

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&copyid=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.

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.

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.

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.

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

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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.

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'.

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.

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/.

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

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