IDG to move from NYSE to NASDAQ
Brady Corp. acquires EMED Co.
Textron to sell Iowa manufacturing business
Hughes Supply to supply real estate service provider
RadiantWave to resell RedPrairie RFID technology
Third quarter sales, earnings improve for Brady Corp.
Danaher reaffirms second quarter guidance
Prophet 21 unveils new versions of distribution software
Book helps distributors choose technology systems
Columbus McKinnon sees fourth quarter improvements
Milwaukee Electric Tool to be sold
ITW sees operating revenues climb
Timken to close Ohio bearing plants
Industrial production climbs in April

IDG to move from NYSE to NASDAQ
Industrial Distribution Group will move the listing of its common stock to the NASDAQ National Market and plans to trade under the symbol "IDGR" starting the week of May 31.

"The NASDAQ Stock Market has historically shown strong support for growth-minded, smaller-cap companies like IDG," said Andrew Shearer, IDG president and CEO. "We believe that as a fully electronic securities market, with the potential for numerous market makers, the NASDAQ Stock Market provides benefits for our company and its shareholders. We also believe the results of this change should lead to enhanced liquidity for our common stock, better price discovery and potentially improved spreads for our shareholders."

IDG learned earlier this year that the NYSE was considering changes to its listing requirements that would significantly raise the requirements for continued listing on the exchange. The NYSE subsequently reconsidered its proposal, but IDG concluded that moving to NASDAQ would be in the best interest of the company's shareholders.

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Brady Corp. acquires EMED Co.
Milwaukee-based Brady Corp., a manufacturer and marketer of identification systems, completed its acquisition of EMED Co., a Buffalo, N.Y., direct marketer and manufacturer of identification and safety products.

"We are delighted to welcome EMED and its employees to the Brady family of businesses and look forward to working together to offer customers the absolute best in safety and identification products and services," said Tom Felmer, Brady vice president for direct marketing - EMED.

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Textron to sell Iowa manufacturing business
As part of its ongoing effort to divest non-core assets, Textron Inc. will sell its Energy Manufacturing and Williams Machine and Tool (E&W) business to Eastport Operating Partners and the E&W management group.

Eastport Operating Partners is a New York-based investment fund engaged in the purchase of U.S.-based manufacturing companies. Terms of the transaction were not disclosed.

The Energy Manufacturing and Williams Machine and Tool business is based in Monticello, Iowa, and employs approximately 170 people. The company manufactures welded hydraulic cylinders, valves, pumps and reservoirs for a variety of end-markets including the light construction, waste handling, agricultural and truck equipment industries.

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Hughes Supply to supply real estate service provider
Hughes Supply Inc. and real estate service provider Trammell Crow Co. (TCC) finalized an agreement for TCC to provide facilities management services for Hughes locations nationwide and for Hughes to supply a variety of products and services on TCC projects.

Hughes' locations encompass more than 12 million square feet of real estate at 486 wholesale outlets in 38 states, including approximately 3 million square feet at 144 locations in Florida.

TCC works with clients to understand their core business needs and develop adaptive business strategies designed to meet their goals so businesses are free to concentrate on their mission rather than support elements for their operations.

"Our relationship with TCC has existed for several years and this step is evidence of the success we've had together," said Tom Morgan, Hughes president and CEO. "Strategically, it makes sense for us to form agreements like this where we can concentrate on our core business and receive a needed service."

Hughes and TCC expect the partnership will extend across many of their respective product lines.

"We expect this to be a 360-degree relationship and extend beyond the services engagement - one in which we will actively seek ways for our clients to save money by working with Hughes while finding opportunities for Hughes to benefit from relationships we have with existing clients," Ellis said. "Additionally, this brings TCC's Florida-based portfolio to 47 million square feet of property and provides a unique opportunity to solidify this relationship right here in Florida."

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RadiantWave to resell RedPrairie RFID technology
RedPrairie Corp., a provider of supply chain technology solutions that drive business process transformation, and RadiantWave LLC, a provider of solution integration services for mobile asset management, announced a strategic partnership.

The agreement will enable RadiantWave to resell the RedPrairie DigitaLogistix suite of RFID-enabled warehouse, transportation and asset management systems into this rapidly expanding market. It will also enable RedPrairie to leverage RadiantWave’s solution integration delivery capabilities to RedPrairie’s customer base.

RedPrairie and RadiantWave are already working together on a number of mobile asset management projects involving RedPrairie’s newly released DLx MRM mobile resource management system. The combined capabilities of RedPrairie and RadiantWave help customers use RFID technology to accurately identify, manage and track physical assets, information and personnel.

“Our partnership with RadiantWave ensures our customers will derive maximum value from their RFID projects leveraging the extensive RFID and asset management experience of the RadiantWave team,” said Michael C. Dempsey, corporate product-market strategy leader for RedPrairie.

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Third quarter sales, earnings improve for Brady Corp. 
Identification solution manufacturer Brady Corp. reported fiscal third quarter net sales of $180.9 million, compared to $142 million during the third quarter of its prior fiscal year. The company generated third quarter net income of $16.4 million, or 68 cents per share, vs. net income of $8.6 million, or 37 cents per share, the year before.

For the first nine months of its fiscal year, Brady posted net sales of $485.7 million, up from net sales of $410.2 million during the prior-year period. Nine-month net income reached $34.8 million, or $1.46 per share, up from net income of $19.6 million, or 83 cents per share, during the comparable period.

"Looking long-term over the next five years, we are targeting 10-percent annual sales growth with half coming from acquisitions and half coming from our core business," said Brady president and CEO Frank M. Jaehnert. "We are also looking to improve our net income rate each year to reach 10 percent of sales over the same time period. Key to achieving these targets are new proprietary products, attractive acquisitions, continuous productivity improvement and a reasonably stable economic environment."

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Danaher reaffirms second quarter guidance
Danaher Corp. president and CEO H. Lawrence Culp Jr. affirmed the company's previously given guidance range of $1.01 to $1.06 earnings per share for the 2004 second quarter and $4.15 to $4.30 earnings per share for the 2004 full year.

Culp also said the company’s year-over-year revenue growth from existing operations for the month of April 2004 was consistent with growth rates experienced in the 2004 first quarter.

Culp made the statements May 18 at the Merrill Lynch Global Industries Conference in London.

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Prophet 21 unveils new versions of distribution software
Prophet 21 released new versions of two of its popular software titles: B2B Seller 3.0 and Knowledge Management Center 4.0.

The latest release of B2B Seller, Prophet 21's Web-based storefront, automatically notifies customers of accessory and complementary items before checkout, increasing sales opportunities and improving customer service.

Software users can search for items by part numbers, cross-reference the Prophet 21 enterprise software solution for alternate item codes and navigate Web sites easier using master product categories.

Additional features include the ability to add past purchases to your shopping list, the ability to leave unordered items in the shopping cart between browser sessions and improved site statistics.

The latest release of Knowledge Management Center, Prophet 21's executive information data warehouse solution, includes features that enhance ease-of-use and administration.

Knowledge Management Center quickly summarizes sales, inventory, accounts receivable, accounts payable and open orders, calculates turns, and allows you to set alerts whenever an activity falls outside a range you predetermine. Executives can respond to changes in the marketplace in real time and make accurate forecasts when planning for the future. Managers can better meet business objectives with access to key performance indicators.

Other features include an improved installation process, the ability to run the software on Windows 2003 server, improve security settings and an enhanced interface.

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Book helps distributors choose technology systems
Smarter Distribution published the new book Succeeding with Distribution Technology, by Bob Boyles. This is the first book dedicated to helping distributors select and implement a computer system for their business.

In producing the book, Boyles draws on nearly 20 years of experience with hundreds of distributors across the country. The book is available for sale at www.smarterdistribution.com. 

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Columbus McKinnon sees fourth quarter improvements
Columbus McKinnon Corp. reported fiscal fourth quarter net sales of $121.8 million, up from net sales of $118.8 million during the fourth quarter last year. The company posted a Q4 net loss of $1.5 million, or 10 cents per share, vs. a net loss of $8.1 million, or 55 cents per share, the year before.

For its year ended March 31, Columbus McKinnon recorded net sales of $444.6 million, a decline from net sales of $453.3 million during the prior-year period. The company generated net income of $1.2 million, or 8 cents per share, compared to a net loss of $14 million, or 97 cent per share, a year ago.

"Columbus McKinnon's financial performance and outlook continues to improve with fourth quarter sales and operating earnings at their highest level in fiscal years 2004 and 2003," said Columbus McKinnon president and CEO Timothy T. Tevens. "Net sales increased 10 percent over the previous quarter and 2 percent over last year, and represent the highest quarterly net sales level since the September 2001 quarter."

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Milwaukee Electric Tool to be sold
Atlas Copco Group initiated plans May 14 to sell its electric tools business, including Milwaukee Electric Tool Corp., the power tool manufacturer based in Brookfield, Wis.

"Atlas Copco's electric tools business is stable and profitable, and it has significant market share, particularly in North America. The business is, however, still far from the group's desired position of globally being number one or two in the markets we serve," said Atlas Copco senior executive vice president Göran Gezelius.

In 2003, the electric tools business, which includes AEG Electric Tools as well as Milwaukee Electric Tool, reported revenues of $700 million and employed 3,100 employees. Sales are chiefly done under the Milwaukee brand, and two-thirds of sales are done in North America.

The synergies between the electric tool business and other businesses within the Atlas Copco Group are limited in distribution, manufacturing and product development, the company said. Also, the selling process is different. While the electric tool divisions sell to industrial distributors and retailers, most other divisions sell directly to industrial end-users and to a lesser extent through distribution.

Milwaukee Electric, which was founded in 1924, has production facilities in Wisconsin, four Mississippi locations, Arkansas and Mexico. The company is undergoing a $5 million renovation of its manufacturing facility in Brookfield, a Milwaukee suburb.

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ITW sees operating revenues climb
Illinois Tool Works Inc. reported an operating revenue increase of 21 percent for the three months ended April 30. Operating revenues for the three-month period consisted of 10 percent growth from base revenues, a 4 percent increase from acquisitions and a 7 percent contribution from currency translation.

Base revenues for the three-month period continued to improve as the company's diversified end markets, both in North America and internationally, showed strength in April.

On a manufacturing segment basis, the company's three-month moving average percentage change for operating revenues, comprised of base revenues and acquisitions, is provided below.

After one month of actual results in the 2004 second quarter and strong base revenue performance worldwide, the company is maintaining its range of $1.04 to $1.12 for income per diluted share from continuing operations with a bias toward the high end of the range.

For full-year 2004, the company is maintaining its range of $4.06 to $4.26 for income per diluted share from continuing operations.

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Timken to close Ohio bearing plants
The Timken Co. will begin closing its Canton, Ohio, bearing manufacturing operations and shifting most of the production to other U.S. plants.

Current employment at the three Canton bearing plants is 1,300 people. Timken employs 4,800 in Stark County, Ohio, and approximately 26,000 worldwide. The Canton-based steel operations are unaffected by this decision.

"We have been meeting with the union for more than eight months to discuss how to make our bearing operations competitive in our changing global marketplace," said James W. Griffith, president and CEO. "We are disappointed that our talks with the union did not lead to the changes necessary to make these facilities viable. Therefore, we will begin moving the products to plants where they can be manufactured competitively.

"We continue to take a close look at our manufacturing network to create focused factories that are globally competitive and better serve our customers," said Griffith. "The acquisition of The Torrington Company has provided more options that allow us to produce these products competitively. We expect no disruption of supply during this transition."

The company will now meet with the union about this decision. More specific information will not be available until after those discussions, including: the timing of the closure; the impact on employment; and the magnitude of the savings and charges for restructuring and implementation, which could be material.

In September 2003, the company began a series of meetings with the union and associates in the Canton bearing operations to discuss what needed to be done to make the plants competitive. At that time, the company made it clear that the Canton bearing operations could not continue to operate in their current form. The company indicated it was willing to make the investments necessary to create a focused, competitive operation in the Canton bearing plants if these investments were accompanied by contract modifications. Since then, the company and the union have been unable to agree on the necessary changes.

Production at the Canton bearing plants declined 27 percent over the last five years as the cost structure of the operations made it difficult to win new business. The plan to close the Canton bearing operations is consistent with Timken's overall strategy to make the company more profitable, more customer-centric and better able to grow.

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Industrial production climbs in April
Industrial production increased 0.8 percent in April after declining 0.1 percent in March, according to the Federal Reserve. At 115.4 percent of its 1997 average, output in April was 4.8 percent higher than its level in April 2003.

Capacity utilization for total industry increased to 76.9 percent, a rate 0.5 percentage point above that of its first-quarter average but still more than 4 percentage points below its 1972-2003 average.

Manufacturing output increased 0.7 percent in April after increasing 0.1 percent in March. The gains in April were widespread. The overall factory operating rate climbed nearly 0.5 percentage point, to 75.7 percent, its highest rate in three years.

A rise of 0.8 percent in the production of durable goods was led by gains in the output of fabricated metal products and of computer and electronic products. Output increased in all other major durable manufacturing categories except aerospace and miscellaneous transportation equipment.

Among the high-technology industries, both the computer and semiconductor industries posted noticeable gains in output, while the production of communications equipment declined for a third consecutive month.

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