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Distribution Industry News Archives:
News from the week of May 9, 2005

Evergreen Marketing Group names leadership
Kennametal completes sale of Full Service Supply
Airgas records increased Q4 sales, earnings
Infor completes acquisition of MAPICS
Machine tool consumption surges in March
Applied wins award from MidTown Cleveland Inc.
Lenox introduces mobile marketing unit for Gold blade

Evergreen Marketing Group names leadership
The Evergreen Marketing Group announced its new board of directors and supplier advisory council during its annual partnership conference in April.

The group’s 2005-2006 board of directors includes:
• Chairman Bobby Williams of United Tool & Fastener, Houston;
• President Shannon Worthington of Dixie Construction Products, Atlanta;
• Vice president and secretary Jordan Bader of Acme Construction Supply, Portland, Ore.;
• Treasurer Jeff DeMoss of Bluegrass Tool Warehouse, Lexington, Ky.;
• Director Rob Culgin of Pro Tool & Supply, Waltham, Mass.;
• Director Joe Hammond of J.J. Hammond Co., Columbus, Ohio;
• Director Steve Kuhlman of Acme Electric Tool, Grand Forks, N.D.

Evergreen’s 2005-2006 supplier advisory council includes:
• Dennis Wiles of ITW Buildex (chairman);
• Kim Reynolds of M.K. Morse Company;
• Michael Sullivan of United Abrasives/SAIT;
• Edward Gericke of Werner Company;
• Lenny Colasuonno of Powers Fasteners;
• John Erwin of Erwin Sales & Associates (Rep liaison).

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Kennametal completes sale of Full Service Supply
Kennametal Inc. has completed the previously reported divestiture of its Full Service Supply business unit to Ferguson Enterprises, Inc.

Ferguson is the U.S.-based subsidiary of Wolseley PLC, a U.K.-based firm with revenues of approximately $19 billion.

The company plans to use the proceeds of the sale for additional investment in its core consumable materials business and for further debt reduction.

The disposition of this unit is in line with the continued execution of Kennametal's strategy to concentrate on its core businesses.

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Airgas records increased Q4 sales, earnings
Airgas Inc. reported fourth quarter net sales of $656.1 million, up from net sales of $522.1 million during the fourth quarter of 2004. The company posted net income of $24.2 million, or 31 cents per share, compared to $21.7 million, or 29 cents per share, in the prior-year period.

For its fiscal year ended March 31, Airgas generated net sales of $2.4 billion, an increase over net sales of $1.9 billion during fiscal 2004. Net income reached $92 million ,or $1.20 per share, compared to net income of $80.2 million, or $1.07 per share, the year before.

"We are very encouraged by our sales momentum, especially the strength is gases, and by the continued trend into April," said Airgas chairman and CEO Peter McCausland. "The price increases initiated in March are gaining traction and helping to offset cost pressures related to the purchase and delivery of our products."

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Infor completes acquisition of MAPICS
Manufacturing and distribution software provider Infor acquired MAPICS, a provider of ERP, CRM, PLM and supply chain management software and services to manufacturers.

With the acquisition, Infor also extends its global reach through MAPICS’ strong affiliate and partner network. The MAPICS network complements Infor’s existing direct and indirect sales channels, enabling Infor to present a broader product offering, additional global distribution, increased implementation capability and expansion opportunities to organizations around the world.

“The acquisition of MAPICS deepens our focus on manufacturing and distribution, and strengthens our ability to provide the world-class solutions and experienced professionals our customers need to remain competitive in a global economy,” said Jim Schaper, Infor’s chairman and CEO. “With the addition of MAPICS we now provide solutions to more than 17,500 customers with implementations in 70 countries."

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Machine tool consumption surges in March
U.S. machine tool consumption totaled $300.6 million in March, up 25.7 percent from February and up 6.6 percent from $281.9 million reported for March 2004, according to the American Machine Tool Distributors' Association (AMTDA) and the Association For Manufacturing Technology (AMT).

With a year-to-date total of $737.2 million, 2005 was up 19.4 percent compared with 2004.

"Despite some unsettling economic news in the last few weeks, capital investment in machine tools is still strong," said Ralph J. Nappi, AMTDA president. "Increased productivity and capacity requirements continue to push U.S. manufacturers to invest to be globally competitive."

U.S. machine tool consumption is also reported on a regional basis for five geographic breakdowns of the United States.

March machine tool consumption in the Northeast region totaled $41 million, up 5 percent from February’s $39.1 million and up 33.6 percent compared with March a year ago. The year-to-date total of $100.6 million was 22.5 percent higher than the comparable figure in 2004.

At $59.2 million, Southern machine tool consumption in March was 79.9 percent higher than the $32.9 million tallied in February and 19.6 percent ahead of the total for March 2004. With a year-to-date total of $128.4 million, 2005 was running 41.4 percent ahead of 2004 at the same time.

Midwestern machine tool consumption in March rose to $110.9 million, up 21.5 percent compared with February's $91.2 million, but down 9.7 percent compared with last March. At $280.8 million, the year-to-date 2005 total was up 9.8 percent compared with 2004 at the same time.

With a total of $58 million, Central region machine tool consumption was up 31.2 percent from February's $44.2 million and up 9.8 percent compared with March a year ago. The year-to-date total of $142.5 million was 25.4 percent higher than the comparable figure for 2004.

Western region machine tool consumption in March totaled $31.5 million, slightly less than February’s $31.8 million, but 20.7 percent higher than the total for March 2004. At $85 million, the year-to-date total was up 12.8 percent compared with 2004 at the same time.

The United States Machine Tool Consumption report, jointly compiled by the two trade associations representing the production and distribution of manufacturing technology, provides regional and national U.S. consumption data of domestic and imported machine tools and related equipment.

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Applied wins award from MidTown Cleveland Inc.
Applied Industrial Technologies received the Toast of MidTown Award from MidTown Cleveland Inc.

Recipients were selected by the MidTown Cleveland Inc. board of trustees for:
• participation in or creation of a community service program;
• philanthropic giving;
• strengthening MidTown's economy;
• consistent volunteer participation at MidTown Cleveland Inc. service events; and,
• other demonstrated community outreach activities.

Specifically, Applied was honored for its tutoring program with the Alfred Benesch School and its successful fundraising that generated more than $40,000 for the 2005 Harvest for Hunger campaign. This is the first year MidTown presented the award.

The award recipients were also presented with commendations from the Cuyahoga County Board of County Commissioners. Other recipients include City Architecture Inc., First United Methodist Church, and Northeast Ohio Regional Sewer District.

"As a company with deep roots in Cleveland and the MidTown community, we recognize the importance of helping our fellow neighbors," said Mike Coticchia, vice president of human resources and administration for Applied. "We strive to make a difference in the way we do business and in the way we treat others."

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Lenox introduces mobile marketing unit for Gold blade
Hand tool, power tool accessory and saw blade manufacturer Lenox introduced its new International Truck and Engine Corp. CXT, a mobile marketing unit designed to look like a Lenox Gold reciprocating blade is cutting it in half.

The cutting image plays off the concept of Team Hackman, a team of seven master cutters who travel the nation demonstrating the strength of Lenox blades by cutting cars in half. The team was responsible for 150 car cuttings in 2004.

Created by commercial trucking industry giant International Truck and Engine to be the world's biggest production pickup truck, the CXT uses the same platform as snowplows and dump trucks and features a standard horsepower rating of 220 horsepower and 540 foot-pounds of torque.

"As the toughest, most original and extreme pick-up truck available, the CXT is the perfect vehicle for driving the premium, innovative Lenox brand image home with professional end-users," said Bob Heisner, Lenox president.

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