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."
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