Danaher posts record Q2 earnings
Lawson Products generates record sales in second quarter
Timken posts record second quarter sales
Streamlight appoints director of marketing
Pentair generates second quarter increases
ITW reports increased sales, earnings in Q2
Black & Decker to purchase Pentair's tools group
Applied Industrial Technologies raises guidance
Black & Decker posts second quarter financial gains
Nissen Fasteners joins IndustrialSupplyPlus
Speedware Corporation to purchase Prelude Systems
Grainger sees sales increase across all business segments

Danaher posts record Q2 earnings
Danaher Corp. recorded second quarter sales of $1.6 billion, up from $1.3 billion during the prior-year period. The company posted net earnings of $182.2 million, or 56 cents per share, during the second quarter, compared to net sales of $125.1 million, or 39 cents per share, during Q2 2003.

For the first two quarters of the year, Danaher reported sales of $3.2 billion, compared to $2.5 billion the year before. Net earnings reached $327.5 million, or $1.01 per share, compared to net earnings of $228.3, or 72 cents per share, last year.

"We are again pleased to report record quarterly earnings," said H. Lawrence Culp Jr., Danaher president and CEO. "We are particularly pleased to report growth of 10 percent from existing businesses, also known as core revenues. Total sales growth for the quarter also includes acquisition growth of 13 percent and currency gains of 2 percent. Both the Process/Environmental Controls and Tools and Components segments delivered solid results, finishing the quarter with 9.5 percent and 11 percent core revenue growth, respectively."

He added: "The broad-based strength we continue to see across our businesses reinforces our confidence in our ability to deliver positive results for the balance of 2004."

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Lawson Products generates record sales in second quarter
Lawson Products Inc. reported net sales of $104.4 million for the second quarter, compared to net sales of $97.1 million during the prior-year period. Net income increased to $5.3 million, or 56 cents per share, vs. net income of $4.1 million, or 44 cents per share, last year.

The company posted net sales for the first two quarters of the year of $205.1 million, compared to $193.2 million last year. The company generated net income of $11.8 million, or $1.25 per share, compared to $7.9 million, or 83 cents per share, the year before.

"Record sales for the second quarter of 2004 indicate that initiatives implemented in previous periods continue to deliver positive results," said Robert J. Washlow, Lawson chairman and CEO. "Our business is strong and growing, with increases in second quarter sales and operating income realized across our MRO and OEM segments."

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Timken posts record second quarter sales
The Timken Co. reported second quarter net sales of $1.1 billion, up from net sales of $990.3 million last year. Net income for the period reached $25.3 million, or 28 cents per share, a huge increase over net income of $3.9 million, or 5 cents per share, in the prior-year period.

For the first half of 2004, Timken generated net sales of $2.2 billion, compared to net income of $1.8 billion the year before. Net income increased to $53.8 million, or 60 cents per share, compared to net income of $15.3 million, or 19 cents per share, during the first six months of 2003.

"It was another record sales quarter for The Timken Company," said James W. Griffith, president and CEO. "Industrial markets strengthened noticeably in the second quarter, buoying sales across all parts of the company. Our results reflect both this increased demand and improved execution."

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Streamlight appoints director of marketing
Lighting equipment manufacturer Streamlight Inc. named Loring Grove to the position of director of marketing. In her new role, Grove is responsible for the development and implementation of the corporate marketing plan and budget, corporate branding, advertising, public relations and marketing communications.

Grove brings nearly 25 years of marketing, advertising, branding, creative design and promotions experience to her new position. As the founder and principal of two agencies, Grove and Associates and Grove Creative Marketing Services Inc., she worked for several high-profile universities in the Philadelphia area, regional and national business services accounts and national consumer goods manufacturers.

"With her extensive background in marketing and communications, Loring has already had an instrumental role in helping to take Streamlight's marketing, advertising and other promotional efforts to the next level," said Walter Kaihatu, vice president of Streamlight Inc. "We are delighted to have someone of her caliber and depth of experience join our executive team."

Grove is a graduate of Moore College of Art and Design in Philadelphia where she studied advertising design.

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Pentair generates second quarter increases
Pentair reported second quarter 2004 net sales of $813.9 million, up from net sales of $719 million during the prior-year period. Net income increased to $55.5 million, or 55 cents per share, also up from $43.9 million, or 44 cents per share, during the second quarter last year.

For the first six months of the year, net sales increased to $1.6 billion, an increase over net sales of $1.4 billion during the first two quarters of 2003. Net income for the period reached $95.7 million, or 95 cents per share, vs. net income of $71.7 million, or 72 cents per share, during the prior-year period.

The tools group saw second quarter sales increase slightly to $283.4 million. Second quarter operating income reached $23.2 million, only slightly more than the prior year period.

In the first six months, the tools group reported sales of $562.1 million, an increase over sales of $535.2 million in 2003. Operating profit increased to $43.9 million in the period vs. $40.8 million the year before.

In an announcement issued July 19, Pentair said it signed a definitive agreement to sell its tools group to the Black & Decker Corp. of Towson, Md., for approximately $775 million.

"The third transformation of Pentair is nearing completion," said Randall J. Hogan, Pentair chairman and CEO. "Looking to the future on a continuing operation basis, we expect third quarter earnings per share of between 29 cents and 34 cents and full year earning per share of between $1.28 and $1.38. This is in line with our prior guidance. Further, we expect 2005 earnings per share of $1.95 to $2.10, which reflects 50 percent earnings per share growth from continuing operations. By then, we expect to have swapped the earnings of our tools business, and the dynamics of the tools market, for the earnings of WICOR, and the prospects of our water business, for a net cash outlay of roughly $100 million, with no dilution from prior expectations of $1.99."

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ITW reports increased sales, earnings in Q2
Illinois Tool Works Inc. (ITW) recorded second quarter revenues of $3 billion, up from $2.6 billion during the second quarter of last year. The company generated net income of $360.4 million, or $1.16 per share, up from net income of $276.1 million, or 90 cents per share, during the prior-year period.

For the first six months of the year, ITW posted revenues of $5.7 billion, up from revenues of $4.9 billion the year before. The company generated net income of $650.5 million, or $2.10 per share, compared to net income of $471.5 million, or $1.53 per share, during the first two quarters of 2003.

"We continue to be very pleased with nearly all facets of our business and the improving characteristics of our end markets," said W. James Farrell, chairman and CEO. "The recently completed quarter was gratifying as we achieved record earnings, continued on our upward march to improve operating margins and closed eight acquisitions which will help us achieve our long-term profitability targets."

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Black & Decker to purchase Pentair's tools group
Pentair Inc. will sell its tools group to The Black & Decker Corp. of Towson, Md., for approximately $775 million. The transaction is expected to close in 2004, following the completion of customary regulatory clearance.

"In the 1990s, Pentair was largely defined by its top-performing tools businesses but, today, the water and enclosures businesses are the driving forces in our growth and expansion," said Randall J. Hogan, Pentair chairman and CEO. "The premier brands comprising our tools group continue to represent great value and have performed well against their competitors. However, the opportunities we see in the expansion of our water and enclosures groups made the sale of the tools group a logical step to build greater value for Pentair shareholders. The tools group is a strong business that performed well for Pentair, and we believe it will continue to grow and prosper under the ownership of Black & Decker."

Black & Decker is a global manufacturer and marketer of quality power tools and accessories, hardware and home improvement products, and technology-based fastening systems.

Pentair's tools group comprises brands including Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw, and FLEX, among others. The group employs approximately 4,200 people at facilities in North America, Europe and Asia.

"Black & Decker is a recognized leader in the power tool industry and has proven its ability to grow and sustain strong brand names," Hogan said. "We are very confident that we are placing our tools group in the hands of a team that can further build the tools businesses to benefit their customers, their suppliers and their employees."

Pentair noted that the proceeds from the sale of the tools group will be used to pay down debt associated with Pentair's acquisition of WICOR Industries, which recently was approved by the Federal Trade Commission and is expected to be complete at the end of July.

"Going forward, with Pentair's full resources focused on the growth and expansion of the water and enclosures groups, we will become a much stronger, more nimble company," Hogan said. "We also expect to be much better positioned to achieve with greater consistency the growth goals our shareholders expect."

Black & Decker chairman and CEO Nolan D. Archibald called the bolt-on acquisition ideal, with excellent strategic and financial benefits.

"The businesses we will acquire from Pentair focus on the large and profitable professional power tool market in North America and are an excellent fit with our DeWalt division," said Archibald. "This acquisition will add well-respected brands to our portfolio and expand our offerings in product lines where we have relatively low market share, including woodworking equipment, compressors, pressure washers, and nailers. In addition, it will give us a stronger presence throughout our distribution network, particularly in the industrial/construction channel."

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Applied Industrial Technologies raises guidance
Applied Industrial Technologies raised sales and earnings guidance for its fiscal 2004 fourth quarter and full-year, ended June 30.

Earnings for the company's fourth quarter are expected to be 52 cents to 62 cents per share on sales of $404 million to $406 million. Previous guidance, announced April 15, projected earnings of 45 cents to 50 cents per share on sales of $385 million to $400 million.

Thus, fiscal 2004 earnings of between $1.57 and $1.67 per share are expected on revenues of between $1.516 billion and $1.518 billion. Previous guidance projected earnings of $1.50 to $1.55 per share on sales of $1.497 billion to $1.512 billion.

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Black & Decker posts second quarter financial gains
Black & Decker Corp. reported second quarter net sales of $1.3 billion, up from net sales of $1.1 billion during the second quarter of 2003. Net earnings reached $121.6 million, or $1.53 per share, in the quarter, up from net earnings of $75.7 million, or 97 cents per share, a year go.

For the first six months of the year, Black & Decker generated net sales of $2.4 billion, up from net sales of $2 billion during the same period last year. Net earnings jumped to $208.2 million, or $2.59 per share, a huge increase over net earnings of $119.1 million, or $1.52 per share, during the prior-year period.

In the U.S., sales of DeWalt professional products increased at a double-digit rate for the third consecutive quarter, with gains in all major distribution channels and product categories. Sales of Black & Decker consumer products also increased at a double-digit rate, led by lasers, cordless drills, and lawn and garden products. Sales increased at a double-digit rate in Asia and at a mid-single-digit rate in Europe and Latin America.

"Looking forward, we remain optimistic about our new products, market positions and the North American economy," said Black & Decker chairman and CEO Nolan D. Archibald. "Despite facing much tougher comparisons, we are forecasting a low-to-mid-single-digit rate of sales growth excluding currency translation and acquisitions for the third quarter, and a mid-single-digit rate for the full year. For both the third quarter and the full year, we anticipate a double-digit sales growth rate including currency and acquisitions. Operating margins should continue to improve, but not as dramatically as in the first half of the year. Therefore, we anticipate diluted earnings per share from continuing operations in the ranges of $1.25 to $1.30 for the third quarter and $5.05 to $5.15 for the full year."

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Nissen Fasteners joins IndustrialSupplyPlus
IBC added Nissen Fasteners as a preferred supplier to its IndustrialSupplyPlus division.

The Nissen Company, based in Pointe Claire, Quebec, provides a wide array of fastening products from bolts to machine screws and everything in between. Their outstanding customer service, coupled with value-added services such as direct drop shipping, custom labeling and a no-minimum order quantity, provides independent industrial distributors with a strong competitive tool. Nissen has stocking locations in Quebec, New York and Florida; as well as international locations outside of North America.

“Nissen Fasteners is excited about this opportunity to work with IBC," said Kamal Panesar, vice president of business development for Nissen. "IBC currently has many of the strongest independent distributors in the United States. We pride ourselves on strong relationship building and look forward to assisting them in their local marketplace efforts.”

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Speedware Corporation to purchase Prelude Systems
Enterprise software provider Speedware Corporation Inc. will acquire Dallas, Texas-based Prelude Systems Inc., a provider of enterprise software solutions to the distribution market.

Under the terms of the agreement, Speedware will acquire 100 percent of Prelude’s common stock for $9.8 million in cash (subject to certain adjustments) and an additional earnout payment of up to $4 million due one year after closing. This earnout component is subject to Prelude achieving certain revenue and profitability based performance targets.

Don Webb, president and founder of Prelude, will remain president of Prelude after closing, when it becomes a wholly-owned subsidiary of Speedware Corp.

For 25 years, Prelude provided software solutions to maximize wholesale distributor personnel efficiency, reduce inventory and improve customer service. This acquisition provides Prelude customers with the stability and financial backing of a larger company environment while providing employees with the opportunities of a growing company. This acquisition will provide opportunity for expanded research and development, support and sales growth.

Prelude addresses the needs of a broad range of distribution markets, including pool supply, industrial, automotive parts and consumer products. Prelude reported approximately $13.7 million in revenue for the year ended June 30. Speedware expects the results of Prelude’s operations will be consolidated with Speedware’s financial statements beginning with the quarter ending Sept. 30.

“Combining with Speedware increases our financial and operating strength for product investment, future acquisitions and long-term prosperity,” said Prelude president Don Webb. “As consolidation in the enterprise software market continues, we are confident that by joining with Speedware, we will be ideally positioned to further serve our customers and to be the vendor of choice for future clients.”

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Grainger sees sales increase across all business segments
Grainger reported second quarter net sales of $1.3 billion, up from $1.2 billion during the second quarter a year ago. Net earnings increased to $66.6 million, or 72 cents per share, up from $56 million, or 60 cents per share, the year before.

For the first six months of the year, net sales increased to $2.5 billion, up from $2.3 billion during the prior-year period. Net earnings rose to $129.2 million, or $1.41 per share, up from net earnings of $108.4 million, or $1.17 per share, during the first six months of last year.

Sales in the branch-based distribution segment increased by 7 percent in the 2004 second quarter. Sales in the U.S. were up 8 percent, due largely to a strengthening manufacturing sector.

Sales processed through Grainger.com increased 32 percent in the quarter to $151 million from $115 million in 2003. Grainger now expects sales through this Web site of $575 million to $625 million for 2004, up from the previous estimate of $500 million to $550 million.

Sales in Mexico were up 12 percent in the quarter, driven by increased telesales and an improving economy. Although the Canadian economy grew in the quarter, Canadian sales were only up 2 percent (flat in Canadian dollars) because there was no counterpart to last year's sales of safety products related to the SARS epidemic. Operating earnings for the quarter were up 21 percent, the result of higher sales and improved gross profit margins.

Sales for Lab Safety accelerated through the quarter, increasing 8 percent driven by double-digit increases in sales of labware, maintenance and material handling products. Operating earnings were up 8 percent, affected in part by higher catalog media and health care-related expenses.

While sales to existing integrated supply customers were up modestly, overall sales were flat for the quarter because of two customer disengagements late in 2003. Operating earnings for integrated supply were up 88 percent for the quarter due to easy comparisons. The 2003 second quarter included higher data processing costs associated with a systems upgrade.

"Thanks to the hard work and dedication of Grainger's employees, we saw sales increase in our branch-based and Lab Safety segments and solid earnings growth in all three business segments in the second quarter," said Grainger chairman and CEO Richard L. Keyser. "Although much of the sales growth was helped by a strong economy, our ongoing strategic investments are expected to contribute even more to revenue growth in the future."

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