Sales increase 24 percent; company raises guidance for year
Diversified manufacturer Parker Hannifin Corporation today reported record results for the fiscal 2011 third quarter ended March 31, 2011. Fiscal 2011 third quarter sales were $3.2 billion, a third quarter record representing an increase of 23.9 percent from $2.6 billion in the same quarter a year ago. Net income was an all-time quarterly record of $281.6 million, an increase of 82.4 percent from $154.4 million in the third quarter of fiscal 2010. Earnings per diluted share for the quarter were also an all-time quarterly record at $1.68, compared with $0.94 in last year's third quarter.
Parker manufactures a number of products ranging from motion and control technologies, hose and accessories such as valves and fittings.
"Our third quarter performance reflects the continued strength that we see across our end markets and regions and our ability to leverage that strength into higher operating margins and record quarterly earnings per share," said Chairman, CEO and President Don Washkewicz. "Customer orders also increased significantly in the quarter. All segments reported a double-digit increase in sales and order levels. Total organic sales increased 21 percent in the quarter with acquisitions contributing 1 percent and currency contributing 2 percent. Margin performance was also a positive as total segment operating margin was a third quarter record of 14.8 percent, led by Industrial North America segment margin of 16.1 percent and Industrial International segment margin of 15.5 percent. Further reflecting our continued strong balance sheet and cash flow, the Board of Directors today approved a 16 percent increase in our quarterly dividend from 32 cents to 37 cents per common share."
In the Industrial North America segment, third quarter sales increased 23.0 percent to $1.2 billion, and operating income was $189.5 million compared with $133.6 million in the same period a year ago.
In the Industrial International segment, third quarter sales increased 29.9 percent to $1.3 billion, and operating income was $199.8 million compared with $109.3 million in the same period a year ago.
In the Aerospace segment, third quarter sales increased 12.1 percent to $503.8 million, and operating income was $69.0 million compared with $49.8 million in the same period a year ago.
In the Climate and Industrial Controls segment, third quarter sales increased 24.9 percent to $264.5 million, and operating income was $22.6 million compared with $16.3 million in the same period a year ago.
The company reported the following orders by operating segment:
• Orders increased 20 percent in the Industrial North America segment, compared with the same quarter a year ago.
• Orders increased 22 percent in the Industrial International segment, compared with the same quarter a year ago.
• Orders increased 44 percent in the Aerospace segment on a rolling 12-month average basis.
• Orders increased 14 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
For fiscal 2011, the company has increased guidance for earnings from continuing operations from the previous range of $5.80 to $6.20 per diluted share to a new range of $6.20 to $6.40 per diluted share.
Washkewicz added, "Our performance year-to-date reflects the ongoing economic recovery and the continued execution of our Win Strategy, now in its tenth year. Parker continues to position itself favorably for continued earnings growth by focusing on premier service to our customers, lean operations and ongoing investments in leading edge innovations across the company. Parker expects to deliver record earnings in fiscal 2011, with a strong order backlog going into fiscal year 2012."
Showing posts with label industrial distribution. Show all posts
Showing posts with label industrial distribution. Show all posts
Wednesday, April 27, 2011
Friday, April 15, 2011
Graco will buy ITW unit for $650 million in cash
ITW unit had sales of $305 million in 2010
Graco, Inc. is buying the operations of the finishing business of Illinois Tool Works for $650 million in cash.
The ITW business makes and distributes equipment for industrial liquid finishing, powder coating and automotive refinishing worldwide.
The ITW business had revenue of $305 million in 2010.
The deal is expected to close sometime in June.
ITW's finishing business has about 40 percent of its sales coming from North America with significant operations in the United States, Switzerland, the United Kingdom, Japan, Brazil and Mexico. Its brands include Binks, Gema, Ransburg, DeVilbiss and BGK Finishing Systems.
Graco, which makes paint sprayers and fluid-handling equipment, said it plans to operate the businesses on a stand-alone basis and not integrate facilities, sales forces or distribution.
Graco's Chief Executive Officer Pat McHale said, "This acquisition is an excellent strategic fit with Graco's Industrial segment. It will advance all of our stated core growth strategies: new products and technology, geographic expansion, and new markets. We gain a leading position in industrial powder paint equipment – a growing global market where we have no offering today. In liquid finishing, the acquired product technologies are complementary to Graco's Industrial offering and also give us a leading position in automotive refinish where we have little presence. The acquired businesses generate two thirds of revenue outside North America, increasing our critical mass in important international and emerging markets. This transaction will bring several widely recognized premium brands to Graco, a strong distribution channel, an installed base and approximately 40 percent of revenue from parts and accessories."
Graco, Inc. is buying the operations of the finishing business of Illinois Tool Works for $650 million in cash.
The ITW business makes and distributes equipment for industrial liquid finishing, powder coating and automotive refinishing worldwide.
The ITW business had revenue of $305 million in 2010.
The deal is expected to close sometime in June.
ITW's finishing business has about 40 percent of its sales coming from North America with significant operations in the United States, Switzerland, the United Kingdom, Japan, Brazil and Mexico. Its brands include Binks, Gema, Ransburg, DeVilbiss and BGK Finishing Systems.
Graco, which makes paint sprayers and fluid-handling equipment, said it plans to operate the businesses on a stand-alone basis and not integrate facilities, sales forces or distribution.
Graco's Chief Executive Officer Pat McHale said, "This acquisition is an excellent strategic fit with Graco's Industrial segment. It will advance all of our stated core growth strategies: new products and technology, geographic expansion, and new markets. We gain a leading position in industrial powder paint equipment – a growing global market where we have no offering today. In liquid finishing, the acquired product technologies are complementary to Graco's Industrial offering and also give us a leading position in automotive refinish where we have little presence. The acquired businesses generate two thirds of revenue outside North America, increasing our critical mass in important international and emerging markets. This transaction will bring several widely recognized premium brands to Graco, a strong distribution channel, an installed base and approximately 40 percent of revenue from parts and accessories."
Thursday, April 14, 2011
Inventories, sales increased in February
Report indicates orders will be rising
Business inventories rose 0.5 percent in February, marking the 14th consecutive monthly increase , according to a report from the U.S. Commerce Department. Sales increased for the eighth consecutive month, indicating that factory orders will be rising in the next few months.
Combined sales by manufacturers, wholesalers and retailers increased 0.2 percent during the month.
The inventories increase means that stockpiles rose to $1.46 trillion in February. It is 10.7 percent higher than the recent low of $1.32 trillion reached in September 2009.
Sales rose at the manufacturing and retail levels, but declined 0.8 percent at the wholesale level.
Business inventories rose 0.5 percent in February, marking the 14th consecutive monthly increase , according to a report from the U.S. Commerce Department. Sales increased for the eighth consecutive month, indicating that factory orders will be rising in the next few months.
Combined sales by manufacturers, wholesalers and retailers increased 0.2 percent during the month.
The inventories increase means that stockpiles rose to $1.46 trillion in February. It is 10.7 percent higher than the recent low of $1.32 trillion reached in September 2009.
Sales rose at the manufacturing and retail levels, but declined 0.8 percent at the wholesale level.
Monday, April 11, 2011
Schneider may be interested in Tyco
Deal would allow Schneider to expand beyond electric-grid management
Paris-based Schneider Electric SA is looking at possibly acquiring Tyco International, Bloomberg News is reporting. Bloomberg said Tyco would help Schneider expand beyond electric-grid management by adding ADT, the biggest securities firm owned by Tyco, as well as fire-prevention equipment and services.
Paris-based Schneider Electric SA is looking at possibly acquiring Tyco International, Bloomberg News is reporting. Bloomberg said Tyco would help Schneider expand beyond electric-grid management by adding ADT, the biggest securities firm owned by Tyco, as well as fire-prevention equipment and services.
Thursday, April 7, 2011
Tramec LLC acquires Hill Fastener Corp.
Company will be named Tramec Hill Fastener, LLC
Fastener manufacturer Tramec LLC, has acquired the Hill Fastener Corporation located in Rock Falls, Illinois, This acquisition positions Hill Fastener as an integral part of the Tramec LLC fastener business, Tramec said. The acquisition will solidify the Tramec's presence in the industrial fastener market and creates instant synergies for both Tramec and Hill Fastener businesses, according to company officials.
Gary Sullo, president of Tramec LLC said, "The value proposition for both companies' customers will be immediately enhanced. The strategic acquisition of Hill Fastener adds manufacturing expertise to Tramec and represents a unique transaction where the sum of these two companies exceeds the individual components. We are enthusiastic about this acquisition, which is named Tramec Hill Fastener, LLC."
In a press release, Robert Hill, owner of Hill Fastener added, "I have had nearly 40 years of experience working here and it has always been my business strategy that, at the right time, Hill Fastener would be turned over to a company like Tramec LLC. As promised, our employees will be retained and the business will remain in the community where my father started it in 1957. I am very gratified by what has occurred for Hill Fastener and its employees."
The Tramec LLC product portfolio services the heavy-duty tractor and trailer OEM and aftermarket businesses, as well as the industrial market.
Tramec LLC is a business within the MacLean Investment Partners (MIP) portfolio owned by the MacLean family. This acquisition fits nicely with the long-range investment strategy to diversify manufacturing capabilities and customer base.
Fastener manufacturer Tramec LLC, has acquired the Hill Fastener Corporation located in Rock Falls, Illinois, This acquisition positions Hill Fastener as an integral part of the Tramec LLC fastener business, Tramec said. The acquisition will solidify the Tramec's presence in the industrial fastener market and creates instant synergies for both Tramec and Hill Fastener businesses, according to company officials.
Gary Sullo, president of Tramec LLC said, "The value proposition for both companies' customers will be immediately enhanced. The strategic acquisition of Hill Fastener adds manufacturing expertise to Tramec and represents a unique transaction where the sum of these two companies exceeds the individual components. We are enthusiastic about this acquisition, which is named Tramec Hill Fastener, LLC."
In a press release, Robert Hill, owner of Hill Fastener added, "I have had nearly 40 years of experience working here and it has always been my business strategy that, at the right time, Hill Fastener would be turned over to a company like Tramec LLC. As promised, our employees will be retained and the business will remain in the community where my father started it in 1957. I am very gratified by what has occurred for Hill Fastener and its employees."
The Tramec LLC product portfolio services the heavy-duty tractor and trailer OEM and aftermarket businesses, as well as the industrial market.
Tramec LLC is a business within the MacLean Investment Partners (MIP) portfolio owned by the MacLean family. This acquisition fits nicely with the long-range investment strategy to diversify manufacturing capabilities and customer base.
Wednesday, April 6, 2011
Regal Beloit acquires Virginia firm
This is Regal Beloit's the third acquisition in past four months
Regal Beloit Corporation (NYSE: RBC) today announced that it has acquired Ramu, Inc., a motor and control technology company headquartered in Blacksburg, Virginia, backed by the venture capital firm Khosla Ventures.
Ramu, Inc. is a startup company founded by Krishnan Ramu with a research and development team dedicated to the development of switched reluctance motor
technology.
Switched reluctance technology is a unique motor design that is suitable
for applications requiring improved operating efficiencies, high operating speeds or high ambient temperature conditions. An additional strategic feature of switched reluctanceis that it does not utilize permanent magnet materials to create the operating torque ofthe motor.
Ramu, Inc.’s current management and technical leadership will continue to lead the
research and development efforts at Ramu, Inc., which will remain headquartered in
Blacksburg, Virginia. This team will be focused on expanding Ramu, Inc.’s current
portfolio of multiple patents and patent applications as well as integrating this
technology into Regal Beloit’s broad motor portfolio for commercialization across
multiple Regal Beloit brands.
“We see potential differentiated value for our customers if we are able to successfully integrate this technology into our energy efficiency motor portfolio,” said Henry Knueppel, chairman and chief executive officer of Beloit-Il. based Regal Beloit.
Regal Beloit Corporation is a manufacturer of mechanical and electrical motion control and power generation products serving markets throughout the world. RegalBeloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and servicefacilities throughout the United States, Canada, Mexico, Europe and Asia. RegalBeloit’s common stock is a component of the S&P Mid Cap 400 Index and the Russell2000 Index.
This is the third acquisition announced by Regal-Beloit in the past few months.
Regal Beloit Corporation (NYSE: RBC) today announced that it has acquired Ramu, Inc., a motor and control technology company headquartered in Blacksburg, Virginia, backed by the venture capital firm Khosla Ventures.
Ramu, Inc. is a startup company founded by Krishnan Ramu with a research and development team dedicated to the development of switched reluctance motor
technology.
Switched reluctance technology is a unique motor design that is suitable
for applications requiring improved operating efficiencies, high operating speeds or high ambient temperature conditions. An additional strategic feature of switched reluctanceis that it does not utilize permanent magnet materials to create the operating torque ofthe motor.
Ramu, Inc.’s current management and technical leadership will continue to lead the
research and development efforts at Ramu, Inc., which will remain headquartered in
Blacksburg, Virginia. This team will be focused on expanding Ramu, Inc.’s current
portfolio of multiple patents and patent applications as well as integrating this
technology into Regal Beloit’s broad motor portfolio for commercialization across
multiple Regal Beloit brands.
“We see potential differentiated value for our customers if we are able to successfully integrate this technology into our energy efficiency motor portfolio,” said Henry Knueppel, chairman and chief executive officer of Beloit-Il. based Regal Beloit.
Regal Beloit Corporation is a manufacturer of mechanical and electrical motion control and power generation products serving markets throughout the world. RegalBeloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and servicefacilities throughout the United States, Canada, Mexico, Europe and Asia. RegalBeloit’s common stock is a component of the S&P Mid Cap 400 Index and the Russell2000 Index.
This is the third acquisition announced by Regal-Beloit in the past few months.
Tuesday, April 5, 2011
Zep sales increase 15% in Q2
Industrial marets helped drive sales
Zep, Inc. a producer of cleaning and maintenance solutions,reported today that revenue for the second quarter of fiscal 2011 increased approximately 15% to $146.8 million, compared with $127.4 million in the same period of the prior year. Earnings before interest, income tax, depreciation, and amortization expenses and excluding restructuring, special items, and acquisition-related expenses (adjusted EBITDA) totaled $9.9 million, an increase of $4.3 million or 76% from the second quarter of fiscal 2010.
John K. Morgan, Chairman, President and Chief Executive Officer, said in a press release: "We are encouraged by the quarter's top-line results as we begin to see improving trends throughout our business. The business delivered significant top- and bottom-line expansion due to continued strong performance from our acquired platforms as well as growth in our legacy operations. Revenue from a number of the end markets we serve - specifically industrial, food and transportation - showed noteworthy improvement when compared to the year-earlier period. We are particularly pleased to be seeing a return to organic growth as a number of key initiatives are beginning to bear fruit. Adjusted EPS improvement of more than 60% illustrates the dedication of our associates' to focus on top-line growth initiatives while controlling cost during a prolonged economic recovery."
Mr. Morgan continued, "We made significant progress preparing our operations to further integrate the Waterbury business. We completed, four months ahead of schedule, a new, three-year collective bargaining agreement for the Atlanta manufacturing and distribution locations. This milestone and other operational improvements prepare the business for anticipated increased demand and clear the way for the final steps of integrating the Waterbury production into our existing facilities."
Zep, Inc. a producer of cleaning and maintenance solutions,reported today that revenue for the second quarter of fiscal 2011 increased approximately 15% to $146.8 million, compared with $127.4 million in the same period of the prior year. Earnings before interest, income tax, depreciation, and amortization expenses and excluding restructuring, special items, and acquisition-related expenses (adjusted EBITDA) totaled $9.9 million, an increase of $4.3 million or 76% from the second quarter of fiscal 2010.
John K. Morgan, Chairman, President and Chief Executive Officer, said in a press release: "We are encouraged by the quarter's top-line results as we begin to see improving trends throughout our business. The business delivered significant top- and bottom-line expansion due to continued strong performance from our acquired platforms as well as growth in our legacy operations. Revenue from a number of the end markets we serve - specifically industrial, food and transportation - showed noteworthy improvement when compared to the year-earlier period. We are particularly pleased to be seeing a return to organic growth as a number of key initiatives are beginning to bear fruit. Adjusted EPS improvement of more than 60% illustrates the dedication of our associates' to focus on top-line growth initiatives while controlling cost during a prolonged economic recovery."
Mr. Morgan continued, "We made significant progress preparing our operations to further integrate the Waterbury business. We completed, four months ahead of schedule, a new, three-year collective bargaining agreement for the Atlanta manufacturing and distribution locations. This milestone and other operational improvements prepare the business for anticipated increased demand and clear the way for the final steps of integrating the Waterbury production into our existing facilities."
Monday, April 4, 2011
Apax Partners acquires Activant and Epicor Solutions
The combined company will have 30,000 customers; $825 million in revenue
Activant Solutions Inc., a provider of ERP and point-of-sale software serving mid-market retailers and distributors, today announced that it has entered into a definitive agreement to be acquired by Apax Partners, a private equity firm with a history of technology investment. Activant is currently owned by investment funds affiliated with Hellman & Friedman LLC, Thoma Bravo, LLC and JMI Equity, and by management.
Apax also announced today that it is has entered into a definitive agreement under which funds advised by Apax will acquire Epicor Software Corporation (NASDAQ: EPIC), a provider of enterprise business software solutions for the mid-market and the divisions of global 1000 companies. Apax intends to combine Activant with Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors. Following completion of the merger, the combined company will be called Epicor Software Corporation.
"This transaction is extremely positive for Activant’s customers, employees and investors alike," said Pervez Qureshi, Activant president and CEO. “Our market leadership and expertise in distribution perfectly complements Epicor’s expertise in the manufacturing and services sectors. Together, Activant and Epicor’s retail business solutions can now cover the full spectrum of retailing − from small hardlines retailers, to national specialty softgoods and apparel chains, to global general merchandise department stores. Additionally, with Epicor’s worldwide infrastructure, we will have the opportunity to service and support Activant products internationally, which is very important as our customers compete in an increasingly global business environment.”
“With Apax, we are partnering with one of the premier investment firms in the world and one that is very much focused on growth and delivering value to the customers of its portfolio companies,” continued Qureshi. “The combined company will have over 30,000 customers, $825 million in annual revenues, and the most visionary business application software and vertical industry expertise in the market today. Apax is committed to growing the businesses in which they invest and has an excellent track record of working as a strategic partner with management to build high-growth companies.”
Under the terms of the agreement, all of Activant’s outstanding shares and stock options will be acquired for cash. Upon completion of the transaction all of
Activant’s outstanding 9-1/2% Senior Subordinated Notes will be redeemed and Activant’s senior secured indebtedness will be repaid. Apax has received debt commitment letters from Bank of America, N.A. and Royal Bank of Canada to provide the debt necessary to close the acquisitions. The acquisition of Activant is conditioned upon the concurrent closing of Apax’s acquisition of Epicor, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Activant expects that the acquisitions will close by the end of the second calendar quarter of this year.
"We are extremely excited to be bringing together two of the premier enterprise software companies to create a global market leader,” said Jason Wright, a partner at Apax Partners. “Activant and Epicor are both true innovators and extremely well positioned in the enterprise applications software space. Both Epicor and Activant customers will benefit from the combined entity’s increased scale, solutions portfolio and expanded service offerings. Epicor will gain access to significant additional domain expertise, particularly in hardlines retail, automotive and wholesale distribution, while Activant will benefit from an accelerated roadmap to international operations and additional supply chain and manufacturing functionality.”
“In addition to the immediate product and service portfolio enhancements,” Wright continued, “both companies’ customers will further benefit from the strong financial backing of Apax Partners and our commitment to building the new Epicor into the global leader for enterprise business applications in manufacturing, distribution, retail and services. We look forward to partnering with the management team and to providing the resources and support that can accelerate the growth and expansion of the business and the value it creates globally.”
Activant Solutions Inc., a provider of ERP and point-of-sale software serving mid-market retailers and distributors, today announced that it has entered into a definitive agreement to be acquired by Apax Partners, a private equity firm with a history of technology investment. Activant is currently owned by investment funds affiliated with Hellman & Friedman LLC, Thoma Bravo, LLC and JMI Equity, and by management.
Apax also announced today that it is has entered into a definitive agreement under which funds advised by Apax will acquire Epicor Software Corporation (NASDAQ: EPIC), a provider of enterprise business software solutions for the mid-market and the divisions of global 1000 companies. Apax intends to combine Activant with Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors. Following completion of the merger, the combined company will be called Epicor Software Corporation.
"This transaction is extremely positive for Activant’s customers, employees and investors alike," said Pervez Qureshi, Activant president and CEO. “Our market leadership and expertise in distribution perfectly complements Epicor’s expertise in the manufacturing and services sectors. Together, Activant and Epicor’s retail business solutions can now cover the full spectrum of retailing − from small hardlines retailers, to national specialty softgoods and apparel chains, to global general merchandise department stores. Additionally, with Epicor’s worldwide infrastructure, we will have the opportunity to service and support Activant products internationally, which is very important as our customers compete in an increasingly global business environment.”
“With Apax, we are partnering with one of the premier investment firms in the world and one that is very much focused on growth and delivering value to the customers of its portfolio companies,” continued Qureshi. “The combined company will have over 30,000 customers, $825 million in annual revenues, and the most visionary business application software and vertical industry expertise in the market today. Apax is committed to growing the businesses in which they invest and has an excellent track record of working as a strategic partner with management to build high-growth companies.”
Under the terms of the agreement, all of Activant’s outstanding shares and stock options will be acquired for cash. Upon completion of the transaction all of
Activant’s outstanding 9-1/2% Senior Subordinated Notes will be redeemed and Activant’s senior secured indebtedness will be repaid. Apax has received debt commitment letters from Bank of America, N.A. and Royal Bank of Canada to provide the debt necessary to close the acquisitions. The acquisition of Activant is conditioned upon the concurrent closing of Apax’s acquisition of Epicor, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Activant expects that the acquisitions will close by the end of the second calendar quarter of this year.
"We are extremely excited to be bringing together two of the premier enterprise software companies to create a global market leader,” said Jason Wright, a partner at Apax Partners. “Activant and Epicor are both true innovators and extremely well positioned in the enterprise applications software space. Both Epicor and Activant customers will benefit from the combined entity’s increased scale, solutions portfolio and expanded service offerings. Epicor will gain access to significant additional domain expertise, particularly in hardlines retail, automotive and wholesale distribution, while Activant will benefit from an accelerated roadmap to international operations and additional supply chain and manufacturing functionality.”
“In addition to the immediate product and service portfolio enhancements,” Wright continued, “both companies’ customers will further benefit from the strong financial backing of Apax Partners and our commitment to building the new Epicor into the global leader for enterprise business applications in manufacturing, distribution, retail and services. We look forward to partnering with the management team and to providing the resources and support that can accelerate the growth and expansion of the business and the value it creates globally.”
Tuesday, March 29, 2011
Oracle may bid for Lawson Software
Report says other bidders may also emerge
A news report by www.bloomberg.com today said that the Oracle Corp. may make a bid for Lawson Software, outbidding Infor and Golden Gate Capital’s offer of $1.8 billion.
Lawson Software, which counts billionaire investor Carl Icahn as one of its biggest shareholders, has risen 4.4 percent above the offer of $11.25 a share from Infor and Golden Gate Capital disclosed March 11, according to data compiled by Bloomberg.
Oracle, the second-biggest seller of business applications software, may buy Lawson, whose clients include Safeway Inc. and Volvo AB, Soleil Securities Corp.
Oracle stands to profit from Lawson Software’s medical records and supply-chain management businesses, which analysts estimate will help push the St. Paul, Minnesota-based company’s earnings to a record this year, Bloomberg said. A bidding contest would also increase Icahn’s windfall from his 10.9 percent stake in Lawson Software, which currently represents a 51 percent gain, data compiled by Bloomberg show.
A news report by www.bloomberg.com today said that the Oracle Corp. may make a bid for Lawson Software, outbidding Infor and Golden Gate Capital’s offer of $1.8 billion.
Lawson Software, which counts billionaire investor Carl Icahn as one of its biggest shareholders, has risen 4.4 percent above the offer of $11.25 a share from Infor and Golden Gate Capital disclosed March 11, according to data compiled by Bloomberg.
Oracle, the second-biggest seller of business applications software, may buy Lawson, whose clients include Safeway Inc. and Volvo AB, Soleil Securities Corp.
Oracle stands to profit from Lawson Software’s medical records and supply-chain management businesses, which analysts estimate will help push the St. Paul, Minnesota-based company’s earnings to a record this year, Bloomberg said. A bidding contest would also increase Icahn’s windfall from his 10.9 percent stake in Lawson Software, which currently represents a 51 percent gain, data compiled by Bloomberg show.
Friday, March 25, 2011
H.B. Fuller sales rise 9.7% in Q1
Gross profit margins affected by increased raw material costs
H.B. Fuller, a provider of adhesives, sealants, paints and other specialty chemical products, today reported Q1 revenue of 339.5 million, up 9.7 percent versus the first quarter of 2010.
Net income for the first quarter of 2011 was $14.4 million, or $0.29 per diluted share, versus $19.0 million, or $0.38 per diluted share, in last year's first quarter.
Higher average selling prices, higher volume and acquisitions positively impacted net revenue growth by 6.8, 2.2 and 1.7 percentage points, respectively, the company said. Foreign currency translation reduced net revenue growth by 1.0 percentage point. Organic revenue grew by 9.0 percent year-over-year. On a sequential basis, net revenue dropped approximately 6 percent relative to the fourth quarter of 2010, in-line with typical seasonal patterns.
Gross profit margin was down approximately 300 basis points versus the first quarter of 2010, primarily due to the cumulative effect of escalating raw material costs over the past year. Gross profit margin improved by 20 basis points versus the previous quarter as a combination of product reformulation and pricing actions offset ongoing raw material cost increases.
"We are pleased with the results of the first quarter," said Jim Owens, H. B. Fuller president and chief executive officer. "We continued our growth momentum with organic revenue up 9 percent from last year. While raw material costs continued to rise in the quarter, our gross margin improved sequentially due to a combination of pricing actions, reformulation and product substitution that were executed efficiently by the entire organization. We have bumped up our full-year revenue guidance to between 10 percent and 12 percent above last year primarily to reflect additional price increases required to recover material costs. We met our expectations for profitability in the first quarter and, as a result, we are reaffirming the full-year earnings per share guidance that we provided at the beginning of the fiscal year."
H.B. Fuller, a provider of adhesives, sealants, paints and other specialty chemical products, today reported Q1 revenue of 339.5 million, up 9.7 percent versus the first quarter of 2010.
Net income for the first quarter of 2011 was $14.4 million, or $0.29 per diluted share, versus $19.0 million, or $0.38 per diluted share, in last year's first quarter.
Higher average selling prices, higher volume and acquisitions positively impacted net revenue growth by 6.8, 2.2 and 1.7 percentage points, respectively, the company said. Foreign currency translation reduced net revenue growth by 1.0 percentage point. Organic revenue grew by 9.0 percent year-over-year. On a sequential basis, net revenue dropped approximately 6 percent relative to the fourth quarter of 2010, in-line with typical seasonal patterns.
Gross profit margin was down approximately 300 basis points versus the first quarter of 2010, primarily due to the cumulative effect of escalating raw material costs over the past year. Gross profit margin improved by 20 basis points versus the previous quarter as a combination of product reformulation and pricing actions offset ongoing raw material cost increases.
"We are pleased with the results of the first quarter," said Jim Owens, H. B. Fuller president and chief executive officer. "We continued our growth momentum with organic revenue up 9 percent from last year. While raw material costs continued to rise in the quarter, our gross margin improved sequentially due to a combination of pricing actions, reformulation and product substitution that were executed efficiently by the entire organization. We have bumped up our full-year revenue guidance to between 10 percent and 12 percent above last year primarily to reflect additional price increases required to recover material costs. We met our expectations for profitability in the first quarter and, as a result, we are reaffirming the full-year earnings per share guidance that we provided at the beginning of the fiscal year."
Thursday, March 24, 2011
Durable goods orders drop 0.9 percent
Machinery orders fall 4.2 percent
Lower orders for machinery and defense related products helped lead to a 0.9 percent drop in durable goods in February, the biggest decrease in four months, the U.S. Commerce Department said today.
Machinery orders fell 4.2% to $26.6 billion. Orders for major defense items dropped 24.8% to $8.3 billion.
January durable goods orders were revised up to a 3.6% increase. The government originally reported that total orders rose 3.2% in January.
Inventories of durable goods climbed 0.9% last month, the 14th consecutive increase.
Lower orders for machinery and defense related products helped lead to a 0.9 percent drop in durable goods in February, the biggest decrease in four months, the U.S. Commerce Department said today.
Machinery orders fell 4.2% to $26.6 billion. Orders for major defense items dropped 24.8% to $8.3 billion.
January durable goods orders were revised up to a 3.6% increase. The government originally reported that total orders rose 3.2% in January.
Inventories of durable goods climbed 0.9% last month, the 14th consecutive increase.
Wednesday, March 16, 2011
Housing starts plunged in February
Starts drop off sharply from January numbers
Construction of new houses and apartments dropped 22.5 percent in February to 479,000annualized units, the Commerce Department reported today. The decline from January was the biggest one-month drop in starts since March 1984.
Starts are at their lowest level since the record low of 477,000 recorded in April 2009.
The report comes after starts increased 18.4% in January, primarily due to multi-family starts. Starts of new single-family homes fell by 11.8% to 375,000 in February, while starts of large apartment units fell 46.1% to 104,000. Building permits fell 8.2% to a seasonally adjusted annual rate of 517,000. This is the lowest level of permits on record.
Construction of new houses and apartments dropped 22.5 percent in February to 479,000annualized units, the Commerce Department reported today. The decline from January was the biggest one-month drop in starts since March 1984.
Starts are at their lowest level since the record low of 477,000 recorded in April 2009.
The report comes after starts increased 18.4% in January, primarily due to multi-family starts. Starts of new single-family homes fell by 11.8% to 375,000 in February, while starts of large apartment units fell 46.1% to 104,000. Building permits fell 8.2% to a seasonally adjusted annual rate of 517,000. This is the lowest level of permits on record.
Monday, March 14, 2011
Business executives optimistic about economy
Two-thirds of respondents expect economy to improve in next six months
U.S. business leaders are the most optimistic they have been since before the recession, according to Grant Thornton LLP’s most recent Business Optimism Index, a quarterly survey of U.S. business leaders.
Nearly two-thirds (64%) believe the U.S. economy will improve in the next six months, compared with 47% in November. Half of the business leaders (49%) report that their company plans to increase staff in the next six months (up from 43%), while only 10% plan to decrease staff (down from 15%) The Index itself is up 6.7 points to 69.7, the highest it has been since 2004.
Nearly nine in 10 of the business leaders (87%) are also optimistic about their own businesses, with only 13% reporting that they are pessimistic about their companies’ growth over the next six months.
U.S. business leaders are the most optimistic they have been since before the recession, according to Grant Thornton LLP’s most recent Business Optimism Index, a quarterly survey of U.S. business leaders.
Nearly two-thirds (64%) believe the U.S. economy will improve in the next six months, compared with 47% in November. Half of the business leaders (49%) report that their company plans to increase staff in the next six months (up from 43%), while only 10% plan to decrease staff (down from 15%) The Index itself is up 6.7 points to 69.7, the highest it has been since 2004.
Nearly nine in 10 of the business leaders (87%) are also optimistic about their own businesses, with only 13% reporting that they are pessimistic about their companies’ growth over the next six months.
Lawson Software receives buyout offer
Software provider Infor and Golden Gate Capital reportedly offering #1.8 billion in unsolicited offer
Lawson Software has received an unsolicited $1.8 billion proposal to be bought by Infor and Golden Gate Capital, the Minneapols-St. Paul Business Journal is reporting.
The offer was for $11.25 per share in cash, which translates into about $1.8 billion.
St. Paul-based Lawson said it's discussing the unsolicited proposal with the potential buyers, the news site said.
If a deal is completed, Lawson would be the second software company acquired by Infor in recent years. Infor bought Minneapolis-based SoftBrands in 2009.
Lawson Software has received an unsolicited $1.8 billion proposal to be bought by Infor and Golden Gate Capital, the Minneapols-St. Paul Business Journal is reporting.
The offer was for $11.25 per share in cash, which translates into about $1.8 billion.
St. Paul-based Lawson said it's discussing the unsolicited proposal with the potential buyers, the news site said.
If a deal is completed, Lawson would be the second software company acquired by Infor in recent years. Infor bought Minneapolis-based SoftBrands in 2009.
Berkshire Hathaway buys Lubrizol
The transaction for the specialty chemical company is valued at $9.7 billion
Berkshire Hathaway Inc. and The Lubrizol Corporation today announced a definitive agreement for Berkshire Hathaway to acquire 100% of outstanding Lubrizol shares for $135 per share in an all-cash transaction. The transaction, which was unanimously approved by the board of directors of each company, is valued at approximately $9.7 billion, including approximately $0.7 billion in net debt, making it one of the largest acquisitions in Berkshire Hathaway history.
This price represents a 28 percent premium over Lubrizol's closing price on Friday, March 11, 2011, and is also 18 percent higher than Lubrizol's all-time high share closing price.
"Lubrizol is exactly the sort of company with which we love to partner - the global leader in several market applications run by a talented CEO, James Hambrick," said Warren Buffett, Berkshire Hathaway chief executive officer. "Our only instruction to James - just keep doing for us what you have done so successfully for your shareholders."
James Hambrick, Lubrizol chairman, president and chief executive officer, said, "This transaction provides compelling value to our shareholders and is a clear endorsement of the growth and diversification success Lubrizol has achieved. We are very excited to have the opportunity to become part of the Berkshire Hathaway family. We believe its philosophy of supporting long-term global investments in technology, assets and employees will enhance execution of our growth strategies. Such a long-term commitment is more important than ever in today's global economy to deliver true market-leading products and services for our customers."
The transaction is subject to the approval of Lubrizol's shareholders and the satisfaction of customary closing conditions, including the expiration of waiting periods and the receipt of approvals under the Hart-Scott-Rodino Antitrust Improvements Act and applicable non-U.S. merger control regulations. Berkshire Hathaway and Lubrizol expect the transaction to be completed during the third quarter of 2011.
After the close of the transaction, Lubrizol will operate as a subsidiary of Berkshire Hathaway and will continue to provide innovative technology, outstanding service and superior global supply chain support to its customers. Lubrizol will remain located at its Wickliffe, Ohio, headquarters and will continue to be led by its current management team.
Citi and Evercore Partners are acting as financial advisors to Lubrizol, and Lubrizol's legal counsel is Jones Day. Berkshire Hathaway's transaction counsel is Munger, Tolles & Olson LLP.
The Lubrizol Corporation is a specialty chemical company that produces and supplies technologies to customers in the global transportation, industrial and consumer markets. These technologies include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals; specialty materials, including plastics technology; and performance coatings in the form of specialty resins and additives.
With headquarters in Wickliffe, Ohio, The Lubrizol Corporation owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,900 employees worldwide. Revenues for 2010 were $5.4 billion.
Berkshire Hathaway Inc. and The Lubrizol Corporation today announced a definitive agreement for Berkshire Hathaway to acquire 100% of outstanding Lubrizol shares for $135 per share in an all-cash transaction. The transaction, which was unanimously approved by the board of directors of each company, is valued at approximately $9.7 billion, including approximately $0.7 billion in net debt, making it one of the largest acquisitions in Berkshire Hathaway history.
This price represents a 28 percent premium over Lubrizol's closing price on Friday, March 11, 2011, and is also 18 percent higher than Lubrizol's all-time high share closing price.
"Lubrizol is exactly the sort of company with which we love to partner - the global leader in several market applications run by a talented CEO, James Hambrick," said Warren Buffett, Berkshire Hathaway chief executive officer. "Our only instruction to James - just keep doing for us what you have done so successfully for your shareholders."
James Hambrick, Lubrizol chairman, president and chief executive officer, said, "This transaction provides compelling value to our shareholders and is a clear endorsement of the growth and diversification success Lubrizol has achieved. We are very excited to have the opportunity to become part of the Berkshire Hathaway family. We believe its philosophy of supporting long-term global investments in technology, assets and employees will enhance execution of our growth strategies. Such a long-term commitment is more important than ever in today's global economy to deliver true market-leading products and services for our customers."
The transaction is subject to the approval of Lubrizol's shareholders and the satisfaction of customary closing conditions, including the expiration of waiting periods and the receipt of approvals under the Hart-Scott-Rodino Antitrust Improvements Act and applicable non-U.S. merger control regulations. Berkshire Hathaway and Lubrizol expect the transaction to be completed during the third quarter of 2011.
After the close of the transaction, Lubrizol will operate as a subsidiary of Berkshire Hathaway and will continue to provide innovative technology, outstanding service and superior global supply chain support to its customers. Lubrizol will remain located at its Wickliffe, Ohio, headquarters and will continue to be led by its current management team.
Citi and Evercore Partners are acting as financial advisors to Lubrizol, and Lubrizol's legal counsel is Jones Day. Berkshire Hathaway's transaction counsel is Munger, Tolles & Olson LLP.
The Lubrizol Corporation is a specialty chemical company that produces and supplies technologies to customers in the global transportation, industrial and consumer markets. These technologies include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals; specialty materials, including plastics technology; and performance coatings in the form of specialty resins and additives.
With headquarters in Wickliffe, Ohio, The Lubrizol Corporation owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,900 employees worldwide. Revenues for 2010 were $5.4 billion.
Thursday, October 7, 2010
BlackHawk buys Duncan Industrial Solutions
It is the first of many expected acquisitions for BlackHawk Industrial Distribution
BlackHawk Industrial Distribution of Tulsa and Brazos Private Equity Partners of Dallas have purchased Oklahoma-based Duncan Industrial Solutions.
BlackHawk is a new company formed by Bill Scheller former CEO of ORS Nasco. Duncan Industrial, a distributor of industrial supplies and equipment, is the company's first acquisition
"Duncan has demonstrated strong performance since it was founded in 1948 and will continue to operate its business in the same fashion going forward,” Scheller said. "Our commitment to Duncan's strategic plan, customers, suppliers, employees and business model will continue to be the foundation upon which we grow our business.”
Duncan has about 160 employees in seven states. The headquarters will remain in Oklahoma City.
"I want to build a national player,” Scheller said. "Duncan is an industrial distributor with deep relationships with its customers.”
Blackhawk will be looking to acquire other companies.
The acquisition of Duncan Industrial by BlackHawk will mean an acceleration of the strategic plan developed by the management team. The focus will be to rapidly grow the business into new market segments, new product categories and new geographical areas.
Blackhawk and Duncan have reportedly identified a pipeline of additional opportunities for growth through acquisitions.
Brazos Private Equity Partners is a middle-market private equity group based in Dallas, TX who partners with individuals, such as Bill Scheller, to invest in companies like BlackHawk and Duncan.
Scheller, the CEO of BlackHawk Industrial, has almost 30 years of experience in the distribution sector, including serving as president and CEO of ORS Nasco.
BlackHawk Industrial Distribution of Tulsa and Brazos Private Equity Partners of Dallas have purchased Oklahoma-based Duncan Industrial Solutions.
BlackHawk is a new company formed by Bill Scheller former CEO of ORS Nasco. Duncan Industrial, a distributor of industrial supplies and equipment, is the company's first acquisition
"Duncan has demonstrated strong performance since it was founded in 1948 and will continue to operate its business in the same fashion going forward,” Scheller said. "Our commitment to Duncan's strategic plan, customers, suppliers, employees and business model will continue to be the foundation upon which we grow our business.”
Duncan has about 160 employees in seven states. The headquarters will remain in Oklahoma City.
"I want to build a national player,” Scheller said. "Duncan is an industrial distributor with deep relationships with its customers.”
Blackhawk will be looking to acquire other companies.
The acquisition of Duncan Industrial by BlackHawk will mean an acceleration of the strategic plan developed by the management team. The focus will be to rapidly grow the business into new market segments, new product categories and new geographical areas.
Blackhawk and Duncan have reportedly identified a pipeline of additional opportunities for growth through acquisitions.
Brazos Private Equity Partners is a middle-market private equity group based in Dallas, TX who partners with individuals, such as Bill Scheller, to invest in companies like BlackHawk and Duncan.
Scheller, the CEO of BlackHawk Industrial, has almost 30 years of experience in the distribution sector, including serving as president and CEO of ORS Nasco.
Tuesday, October 5, 2010
Avnet acquires two companies
Avnet distributes electronic components, connectors, semiconductors, technology solutions, computer products and embedded technology.
Avnet Inc. yestgerday announced it had made two acquisitions: certain assets of Eurotone Electric Ltd., a distributor of inverters for wind and solar power applications in China, and Broadband Integrated Resources Ltd., a U.S. company specializing in the repair of broadband and cable TV equipment for support of cable operators and manufacturers.
Broadband, with facilities in Columbus and Dallas, has 50 employees and revenue of $9.5 million, according to Phoenix-based Avnet. Founded in 2001, it will become part of Avnet Logistics Services, which provides value added supply chain and logistics services to the global technology industry.
"This acquisition demonstrates our commitment to expand into adjacent services opportunities and provides an entry into the reverse logistics business as well as a new customer base in North America," stated Steve Church, Senior Vice President; Chief Business Development and Process Officer. "With management, systems and processes that have built a successful reverse logistics business, Avnet Logistics Services will gain a proven platform upon which we can expand our service offerings."
Avnet Inc. yestgerday announced it had made two acquisitions: certain assets of Eurotone Electric Ltd., a distributor of inverters for wind and solar power applications in China, and Broadband Integrated Resources Ltd., a U.S. company specializing in the repair of broadband and cable TV equipment for support of cable operators and manufacturers.
Broadband, with facilities in Columbus and Dallas, has 50 employees and revenue of $9.5 million, according to Phoenix-based Avnet. Founded in 2001, it will become part of Avnet Logistics Services, which provides value added supply chain and logistics services to the global technology industry.
"This acquisition demonstrates our commitment to expand into adjacent services opportunities and provides an entry into the reverse logistics business as well as a new customer base in North America," stated Steve Church, Senior Vice President; Chief Business Development and Process Officer. "With management, systems and processes that have built a successful reverse logistics business, Avnet Logistics Services will gain a proven platform upon which we can expand our service offerings."
Friday, September 24, 2010
PT/motion control sales drop in July
Power transmission sales are still up year to year in U.S. and Canada
Sales of power transmission/motion control (PT/MC) products by U.S. manufacturers dropped in July by 1.3 percent compared to June and Canadian manufacturers’ sales dropped by 12.3 percent according to July 2010 sales data released by the Power Transmission Distributors Association (PTDA) in its Market Outlook Report.
Although sales dropped in July, sales year-to-date are still ahead of the same period in 2009. In the U.S., year-to-date sales are up 7.6 percent over the same period in 2009. In Canada, sales are 10.3 percent ahead of 2009.
For the third consecutive month, confidence in the market by U.S. manufacturers holds a neutral position of 5.0, while Canadian manufacturers’ confidence dropped from 5.2 back to 4.9 from 5.1 on a scale of 1 (very pessimistic) to 10 (outstanding).
Month-to-month sales for product categories between June 2010 and July 2010 for U.S. and Canadian manufacturers are reported below.
The Market Outlook Report is published monthly by the Power Transmission Distributors Association. The full report includes U.S. and Canadian manufacturer data for sales and order trends for mounted bearings, unmounted bearings, standard industrial motors (U.S. only), variable speed drives, positioning systems/linear motion products, gear products, clutches and brakes, shaft couplings and mechanical drive systems and other PT products.
Sales of power transmission/motion control (PT/MC) products by U.S. manufacturers dropped in July by 1.3 percent compared to June and Canadian manufacturers’ sales dropped by 12.3 percent according to July 2010 sales data released by the Power Transmission Distributors Association (PTDA) in its Market Outlook Report.
Although sales dropped in July, sales year-to-date are still ahead of the same period in 2009. In the U.S., year-to-date sales are up 7.6 percent over the same period in 2009. In Canada, sales are 10.3 percent ahead of 2009.
For the third consecutive month, confidence in the market by U.S. manufacturers holds a neutral position of 5.0, while Canadian manufacturers’ confidence dropped from 5.2 back to 4.9 from 5.1 on a scale of 1 (very pessimistic) to 10 (outstanding).
Month-to-month sales for product categories between June 2010 and July 2010 for U.S. and Canadian manufacturers are reported below.
The Market Outlook Report is published monthly by the Power Transmission Distributors Association. The full report includes U.S. and Canadian manufacturer data for sales and order trends for mounted bearings, unmounted bearings, standard industrial motors (U.S. only), variable speed drives, positioning systems/linear motion products, gear products, clutches and brakes, shaft couplings and mechanical drive systems and other PT products.
Monday, September 20, 2010
A new web portal for small business
The site will help small businesses become suppliers to large companies
A consortium of large businesses in a variety of industry sectors is establishing a new web portal making it easier for small businesses to compete with greater ease to sell goods and services to global companies.
AT&T , Bank of America,, Citigroup, IBM, Pfizer,, and UPS have agreed to standardize and simplify the application process required for qualified small- and mid-sized U.S. suppliers to undergo, as they compete for nearly $150 billion in contracts collectively awarded by those companies every year
To facilitate this, the participating companies will establish a free, public website, created and maintained by IBM through a grant of more than $10 million from the IBM International Foundation. The site, to be named "Supplier Connection" (www.supplier-connection.net), will provide visitors with a single, streamlined electronic application form. Small vendors need only complete the application form once to potentially become suppliers to the participating companies. They will be able to more easily connect for opportunities to sell services, marketing, food, human resources, and construction, among others.
Currently, it can be challenging for small businesses to apply as potential suppliers to large companies, as the process can require significant investments of time, money and expertise. The application forms, formats and requirements of each company can vary, making it difficult for smaller suppliers to pursue business with a single large company, let alone multiple global companies. The Supplier Connection Web site aims to accelerate and streamline the application process leading to increased contracting with small- and medium-sized firms.
In a recent study, NY-based Center for an Urban Future documented that small businesses often experience a dramatic increase in revenues and significantly increase their workforce after becoming a supplier to a large corporation, according to a press release from supplier connection.
The Supplier Connection Web site, which is expected to launch in the first quarter of 2011, will enable access by qualified firms to connect for opportunities where the participating companies conduct business. Consequently, qualified firms will more easily have the opportunity to reach not only the U.S. markets, but potentially nearly 200 countries -- the number of places worldwide where the participating companies operate.
As the program advances, it is expected that many large businesses will sign up and many small companies will benefit. The Web site will enable small suppliers to learn from, collaborate with, and sell to each other so that they can become more competitive and successful. It will offer the participating companies a mechanism for sharing valuable business information with these prospective small- and mid-sized suppliers. Large companies will also have easier access to small, innovative companies that generate new products and services.
In fact, small businesses are the heart of the U.S. economy. Between 1993 and 2008, small businesses created at least 65 percent of new private sector jobs, according to the U.S. Small Business Administration. Meanwhile, the U.S. Commerce Department says that small firms in the United States comprise 99.7 percent of all employer firms, provide jobs to fully half of all private sector employees and pay 44 percent of the private sector payroll.
"Everyone says that small business is the engine for economic growth. We believe opening up new markets for goods and services, in the billions of dollars spent by large companies can be the fuel that will allow those small businesses to grow," said Stanley S. Litow, IBM Vice President of Corporate Citizenship & Corporate Affairs, and President of IBM's Foundation. "I liken the mechanism we're unveiling to a Universal College Application, which simplified the way in which students could spend less time filling out redundant forms, and focus more on academic excellence.
"That's what we're trying to do here -- let small businesses do what they do best, grow their businesses and not get bogged down in red tape."
The Web site will enable small suppliers to learn from, collaborate with, and sell to each other so that they can become more competitive and successful. It will offer the participating companies a mechanism for sharing valuable business information with these prospective small- and mid-sized suppliers. Large companies will also have easier access to small, innovative companies that generate new products and services, according to a recent article about the site in the Wall Street Journal.
A consortium of large businesses in a variety of industry sectors is establishing a new web portal making it easier for small businesses to compete with greater ease to sell goods and services to global companies.
AT&T , Bank of America,, Citigroup, IBM, Pfizer,, and UPS have agreed to standardize and simplify the application process required for qualified small- and mid-sized U.S. suppliers to undergo, as they compete for nearly $150 billion in contracts collectively awarded by those companies every year
To facilitate this, the participating companies will establish a free, public website, created and maintained by IBM through a grant of more than $10 million from the IBM International Foundation. The site, to be named "Supplier Connection" (www.supplier-connection.net), will provide visitors with a single, streamlined electronic application form. Small vendors need only complete the application form once to potentially become suppliers to the participating companies. They will be able to more easily connect for opportunities to sell services, marketing, food, human resources, and construction, among others.
Currently, it can be challenging for small businesses to apply as potential suppliers to large companies, as the process can require significant investments of time, money and expertise. The application forms, formats and requirements of each company can vary, making it difficult for smaller suppliers to pursue business with a single large company, let alone multiple global companies. The Supplier Connection Web site aims to accelerate and streamline the application process leading to increased contracting with small- and medium-sized firms.
In a recent study, NY-based Center for an Urban Future documented that small businesses often experience a dramatic increase in revenues and significantly increase their workforce after becoming a supplier to a large corporation, according to a press release from supplier connection.
The Supplier Connection Web site, which is expected to launch in the first quarter of 2011, will enable access by qualified firms to connect for opportunities where the participating companies conduct business. Consequently, qualified firms will more easily have the opportunity to reach not only the U.S. markets, but potentially nearly 200 countries -- the number of places worldwide where the participating companies operate.
As the program advances, it is expected that many large businesses will sign up and many small companies will benefit. The Web site will enable small suppliers to learn from, collaborate with, and sell to each other so that they can become more competitive and successful. It will offer the participating companies a mechanism for sharing valuable business information with these prospective small- and mid-sized suppliers. Large companies will also have easier access to small, innovative companies that generate new products and services.
In fact, small businesses are the heart of the U.S. economy. Between 1993 and 2008, small businesses created at least 65 percent of new private sector jobs, according to the U.S. Small Business Administration. Meanwhile, the U.S. Commerce Department says that small firms in the United States comprise 99.7 percent of all employer firms, provide jobs to fully half of all private sector employees and pay 44 percent of the private sector payroll.
"Everyone says that small business is the engine for economic growth. We believe opening up new markets for goods and services, in the billions of dollars spent by large companies can be the fuel that will allow those small businesses to grow," said Stanley S. Litow, IBM Vice President of Corporate Citizenship & Corporate Affairs, and President of IBM's Foundation. "I liken the mechanism we're unveiling to a Universal College Application, which simplified the way in which students could spend less time filling out redundant forms, and focus more on academic excellence.
"That's what we're trying to do here -- let small businesses do what they do best, grow their businesses and not get bogged down in red tape."
The Web site will enable small suppliers to learn from, collaborate with, and sell to each other so that they can become more competitive and successful. It will offer the participating companies a mechanism for sharing valuable business information with these prospective small- and mid-sized suppliers. Large companies will also have easier access to small, innovative companies that generate new products and services, according to a recent article about the site in the Wall Street Journal.
Wednesday, August 11, 2010
Avnet reports record sales in Q4
Sales surge 38.5 percent for electronics distributor; sales grew 18 percent for fiscal year
Electronics distributor Avnet today reported that sales surged 38.5 percent to a record $5.21 billion for the fourth quarter ended July 3.Adjusted operating income increased 154.6 percent, four times faster than revenue growth to $217.1 million, up 190 basis points year over year.
Sales for the full year ended July 3, 2010 increased 18.1% year over year to $19.16 billion and increased 17.5% year over year adjusted for the impact of changes in foreign currency exchange rates; pro forma revenue was up 15.5% year over year.
Roy Vallee, Chairman and Chief Executive Officer, commented, “The ‘V’shaped cyclical recovery in the technology markets we serve continued this quarter with strong top line performance across both groups and all regions, resulting in 38.5% year-over-year growth and record revenue. The combination of record revenue, gross profit margin expansion and productivity gains drove operating income margin up sequentially and year over year at both operating groups with the EMEA region delivering the most significant improvement. Our value-based management discipline, which connects margins with working capital velocity throughout our business, resulted in return on working capital (ROWC) and return on capital employed (ROCE) above our stated financial targets. We enter fiscal 2011 prepared to build on our performance in fiscal 2010 as we begin to integrate the three acquisitions completed in July that we expect will produce at least a 12.5% return on capital employed and create shareholder value.”
Avnet, Inc. (NYSE:AVT) is one of the largest distributors of electronic components, computer products and embedded technology serving customers in more than 70 countries worldwide
Electronics distributor Avnet today reported that sales surged 38.5 percent to a record $5.21 billion for the fourth quarter ended July 3.Adjusted operating income increased 154.6 percent, four times faster than revenue growth to $217.1 million, up 190 basis points year over year.
Sales for the full year ended July 3, 2010 increased 18.1% year over year to $19.16 billion and increased 17.5% year over year adjusted for the impact of changes in foreign currency exchange rates; pro forma revenue was up 15.5% year over year.
Roy Vallee, Chairman and Chief Executive Officer, commented, “The ‘V’shaped cyclical recovery in the technology markets we serve continued this quarter with strong top line performance across both groups and all regions, resulting in 38.5% year-over-year growth and record revenue. The combination of record revenue, gross profit margin expansion and productivity gains drove operating income margin up sequentially and year over year at both operating groups with the EMEA region delivering the most significant improvement. Our value-based management discipline, which connects margins with working capital velocity throughout our business, resulted in return on working capital (ROWC) and return on capital employed (ROCE) above our stated financial targets. We enter fiscal 2011 prepared to build on our performance in fiscal 2010 as we begin to integrate the three acquisitions completed in July that we expect will produce at least a 12.5% return on capital employed and create shareholder value.”
Avnet, Inc. (NYSE:AVT) is one of the largest distributors of electronic components, computer products and embedded technology serving customers in more than 70 countries worldwide
Subscribe to:
Posts (Atom)
