Baldor Electric Co. posts sales, earnings increase
Industrial production inches up in September
Machine tool consumption continues growth in August
Eaton reports surge in Q3 sales, income
North Safety Products announces executive appointments
BSA report explains linear bearings
Fastenal reports third quarter gains
NAW spurns Kerry health care proposal
Melin Tool purchases Countersinks Inc.
Parker Hannifin completes purchase of Sporlan Valve Co.
Brady Corp. to expand Milwaukee distribution facility
UPS to acquire CNF's Menlo Worldwide Forwarding unit
Unemployment data shows slight growth

Baldor Electric Co. posts sales, earnings increase
Baldor Electric Co. saw Q3 net sales increase to $168.8 million, 21 percent higher than net sales of $139 million reported for the third quarter last year. The company reported net earnings of $8.7 million, or 26 cents per share, compared to $6.1 million, or 18 cents per share, last year.

For the first three quarters of the year, Baldor Electric Co. generated net sales of $485.4 million, up from net sales of $414.9 million during the prior-year period. Net earnings increased to $24.6 million, or 74 cents per share, for the first nine months, compared to $18.2 million, or 54 cents per share, last year.

"Despite unprecedented increases in the costs of steel and copper, our two largest purchased components, we have been able to improve our profitability this year," said Baldor Electric president and CEO John McFarland. "This improvement is due to higher sales, productivity increases in our manufacturing plants, and better management of our administrative and selling expenses."

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Industrial production inches up in September
Industrial production rose 0.1 percent in September after having edged down 0.1 percent in August, according to the Federal Reserve. Manufacturing output declined 0.3 percent in September.

For the third quarter as a whole, total industrial production increased at an annual rate of 2.9 percent, and manufacturing output rose at a 4.4 percent rate. Capacity utilization for total industry was unchanged in September, at 77.2 percent, a rate 2.3 percentage points above its year-earlier level but still 3.9 percentage points below its 1972-2003 average.

The 0.3 percent drop in manufacturing output in September reflected an unchanged level of production for durables, a 0.5 percent decline in the production of nondurables, and a 0.4 percent drop in non-NAICS manufacturing (logging and publishing).

In the third quarter, the output of durable goods increased at an annual rate of 6.3 percent, and nondurable output rose a more modest 1.4 percent.

Among durables, the production of computers and electronic products gained 0.7 percent in September, while machinery output advanced 0.3 percent. But the output of primary metals; fabricated metal products; and electrical equipment, appliances, and components was little changed, while the output of other major industries fell.

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Machine tool consumption continues growth in August
August U.S. machine tool consumption totaled $225.5 million, up 6.4 percent from July and 54.2 percent from $146.3 million reported for August 2003, according to the Association For Manufacturing Technology (AMT) and the American Machine Tool Distributors' Association (AMTDA).

With a year-to-date total of $1.8 billion, 2004 is up 38.4 percent compared with 2003.

"With machine tool consumption up 38.4 percent for the year, this reinforces the results seen at [International Manufacturing Technology Show]," said John B. Byrd III, AMT president. "Exhibitors at IMTS didn't need numbers to tell them that a capital investment recovery is underway. They came away from the show with orders and with a renewed optimism about the growing manufacturing revival."

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

August machine tool consumption in the Northeast totaled $31.4 million, up 5 percent compared to July's $29.9 million and 20.6 percent ahead of August a year ago. At $259.5 million, year-to-date machine tool consumption was up 48 percent.

Southern machine tool consumption in August stood at $32.6 million, 17.6 percent less than July's $39.6 million, but up 34.8 percent compared to last August. The year-to-date total of $270.9 million is a 5.4 percent drop compared to 2003 at the same time.

At $81 million, August machine tool consumption in the Midwest was 1.6 percent higher than July's $79.7 million and 58.9 percent higher than the total for August 2003. With a year-to-date total of $710.6 million, 2004 is running 46.5 percent ahead of 2003 at the same time.

Totaling $44.1 million, Central region machine tool consumption was 20.8 percent ahead of July's $36.5 million and up 67.3 percent from the August 2003 figure. Reaching $309.2 million, year-to-date 2004 machine tool consumption was 47.3 percent above the comparable figure for 2003.

Western machine tool consumption in August rose to $36.5 million, up 39.1 percent compared to the $26.2 million total for July, and 94.4 percent higher than the August 2003 total. At $228.4 million, year-to-date 2004 is 77.9 percent ahead of 2003 at the same time.

The United States Machine Tool Consumption (USMTC) 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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Eaton reports surge in Q3 sales, income
Diversified industrial manufacturer Eaton Corp. reported third quarter net sales of $2.5 billion, up from net sales of $2 billion during the third quarter a year ago. The company generated net income of $170 million, or $1.13 per share, compared to net income of $107 million, or 72 cents per share, in the prior-year period.

For the first nine months of the year, Eaton posted net sales of $7.2 billion, up from net sales of $6 billion during the same period last year. Net income reached $465 million, or $3.07 per share, an increase over net income of $288 million, or $1.94 per share, a year ago.

"We anticipate that net income per share for 2004 will be between $3.95 and $4.05, and accordingly we anticipate that net income per share for the fourth quarter of 2004 will be between 98 cents and $1.08," said Eaton chairman and CEO Alexander M. Cutler. "Operating earnings per share, which exclude restructuring charges to integrate our recent acquisitions, are anticipated for 2004 to be between $4.10 and $4.20, with operating earnings per share for the fourth quarter of between $1.03 and $1.13."

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North Safety Products announces executive appointments
North Safety Products announced a new slate of general managers in the U.S., Canada, China and Europe. 

The following executives report to North Safety industrial division president Sid Ellis:
• John Kime, vice president and general manager, U.S.;
• Vern Metcalfe, vice president and general manager, Canada;
• Leon Klapwijk, managing director in Europe;
• Ed Wenz, vice president of information technology and general manager of the newly formed Asia division.

As part of the senior management reorganization, Jackee Shepherd was promoted to vice president of operations in North America.

The new senior executive appointments worldwide for each division will be responsible for its sales and marketing in keeping with the company's geographic customer market focus.

In the U.S., the following executives will report to Kime:
• Ron Lee, vice president of sales, western division; and,
• John Friend, vice president of sales, eastern division.

Kime will appoint a new vice president of marketing in the near future.

In Canada, the following executives will report to Metcalfe:
• John Greer, vice president of marketing;
• Larry Matthews, director of sales for western Canada;
• Rick Hansen, director of sales for central Canada; and,
• Pierre Guillemette, director of sales for eastern Canada.

In Europe, the following executives will report to Klapwijk:
• Willem Lambregts, area sales manager in Belgium, Netherlands and Luxemburg;
• Walter Hooymann, area sales manager in Germany, Austria, Switzerland and Eastern Europe;
• Philippe Renoult, area sales manager in France;
• Ron Veenstra, area sales manager in the Middle East and southern Europe;
• Anders Jonasson, area sales manager in Scandinavia; and,
• Mark Baxter, area sales manager in U.K. and Ireland.

In Asia, the following executives will report to Wenz:
• Denis Campbell, sales manager in Southeast Asia/Australia;
• Jason Xie, sales manager in China.

“This is a natural evolution, the next step for our company,” said Ellis. “We have been on a mission to become more global, not only in appearance, but also for our many multinational customers. We want to leverage our offering on a greater scale. The above organization will allow North to focus on our key geographical businesses and maintain regional focus through relationships with our valued customers. It also will provide a global strategy for the personal protective equipment market.”

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BSA report explains linear bearings
The newest Educational Services Committee (ESC) report from the Bearing Specialists Association (BSA), clarifies the diverse category of linear bearings by identifying the basic machine functions and the linear bearing features required for each function.

BSA's Linear Bearings report considers a number of linear guidance systems, including flat cage assemblies, recirculating roller bearings, recirculating roller systems, recirculating linear ball systems (six-row, four-row and two-row), recirculating ball units, track roller systems, and round shaft systems.

It also considers additional characteristics such as rigidity, accuracy, speed and friction. The report includes straightforward, informative charts.

The report is available free from the BSA Web site or by clicking here.

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Fastenal reports third quarter gains
The Fastenal Co. reported third quarter net sales of $325.7 million, an increase over net sales of $258.3 million in the prior-year period. Third quarter net earnings reached $34.7 million, or 46 cents per share, up from net earnings of $23.3 million, or 31 cents per share, last year.

For the first nine months of the year, Fastenal generated net sales of $920 million, up from net sales of $743.3 million during the same time a year ago. The company posted net earnings of $97.7 million, or $1.29 per share, compared to $64.2 million, or 85 cents per share, the year before.

"As discussed in previous public statements, the company's long-term goal has been to continue opening approximately 10 percent to 15 percent new stores each year," the company said in its Q3 financial report. "In July 2004, the company increased the 2004 range to 13 percent to 18 percent in response to the current economic strength we are experiencing."

Fastenal also said it continued its customer service project (CSP) in 2004. The goals of this project include the expansion of the products stocked at each store site as well as a more consistent display theme at each of these store sites. On Sept. 30, 1,289 (or 86 percent) of Fastenal's stores were operating with the CSP layout and product selection.

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NAW spurns Kerry health care proposal
Democratic presidential nominee John Kerry's plan to reform health care is an "overpriced albatross" that will do "little if anything" to address the rising number of medically uninsured people in the United States, according to the National Association of Wholesaler-Distributors (NAW).

NAW is one of five employer trade groups that recently joined to commission and release the study, The Business-Specific Elements of the Proposed Kerry - Edwards Health Plan: Endangering Workers' Jobs and Benefits.

The study was conducted by The Center for Regulatory Effectiveness, a Washington, D.C., think tank.

"We have in the United States today an employer-based system for the delivery of health insurance, and we know that most uninsured people own or work for a small business or are the dependent of someone who does," said Jade West, NAW's senior vice president of government relations. "We also know that small employers are considerably less likely than large businesses to offer health insurance benefits to their employees, due to high premiums in an economically uncompetitive small group market and the uniquely high administrative burdens and costs that small employers face when providing a group health plan.

West continued, saying that in spite of former President Bill Clinton's suggestion that the era of big government is over, Kerry proposes a new big government program that will impose more than 200 regulatory mandates on employers who participate and cost hundreds of billions of dollars.

"One estimate puts the 10-year cost at $1.5 trillion. What goes unexplained in Sen. Kerry's plan is where the money's going to come from," West said.

"The added administrative burdens and resulting costs will make the Kerry-Edwards Health Plan a non-starter among small employers in the wholesale distribution industry, and taxpayers ought to be very concerned about the price tag that attaches to Sen. Kerry's anti-free market, pro-government reform proposal," said NAW president Dirk Van Dongen.

Van Dongen noted that President George Bush's proposals to reform health care come at a much lower price, estimated at just under $130 billion, and include proposals such as association health plans (AHPs) and a focus on marketplace reform.

Van Dongen said NAW's members support AHPs because they will provide smaller employers with real bargaining clout, economies of scale to reduce administrative costs, and added choice and competition, all of which will work together to hold down premium costs.

Click here to view the report.

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Melin Tool purchases Countersinks Inc.
Melin Tool recently acquired Countersinks Inc. of Bensenville, Ill. With the addition of Countersinks Inc. and its more than 1,300 sizes and styles of countersinks, Melin Tool is well positioned to become a reliable source for high quality, competitively priced countersinks.

Melin will maintain the Countersinks name, dropping the Inc., as a division of Melin Tool.

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Parker Hannifin completes purchase of Sporlan Valve Co.
Parker Hannifin Corp. and Sporlan Valve Co. jointly announced that Parker completed its acquisition of Sporlan, a market leader in refrigeration and air conditioning components, controls and systems.

The acquisition was completed for an undisclosed amount and is expected to be accretive to earnings in the first full fiscal year.

Headquartered in Washington, Mo., Sporlan operates seven manufacturing facilities and employs about 1,000 people. Annual revenues are approximately $150 million. Recognizing Sporlan's prominent position in the industry, Parker will make Sporlan a new division within its climate and industrial controls group.

The acquisition is complementary, with Sporlan adding its leadership in the commercial refrigeration and aftermarket distribution segments to Parker's existing strong presence in the air conditioning segment. In addition, Sporlan's expertise in electronic control technologies now enables Parker to offer customers more precise cooling solutions that reduce energy consumption, provide system diagnostic capabilities, and deliver enhanced performance.

"Parker's goal is to be No. 1 or 2 in every market we serve," said CEO Don Washkewicz. "Refrigeration is one of the high-potential growth markets we've focused on for expansion, and the addition of Sporlan greatly enhances our leadership in refrigeration and air conditioning worldwide."

The addition of Sporlan enhances Parker's research and development capabilities. Together, both businesses benefit from economies of scale in procurement and manufacturing, increased sales representation and top distribution.

"Sporlan is a very successful company we've admired for a long time," said Lynn Cortright, president of Parker's climate and industrial controls group. "Together, our two companies will have the most complete offering of valves and controls for the widest range of applications in the refrigeration and air conditioning market today. From supermarket refrigeration to ice machines to residential and commercial air conditioning, Parker and Sporlan will have the ability to deliver total systems to our customers."

"We've respected Parker for many years," said Ken Ohlemeyer, president of Sporlan. "When it became clear that Sporlan was ready to enter a new level of growth, Parker quickly emerged as the best partner. Parker's global infrastructure presents a great opportunity to complement Sporlan's existing worldwide distribution network and to expand the reach of Sporlan's products even further, all over the world. I'm confident that joining Parker will offer our customers significant advantages."

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Brady Corp. to expand Milwaukee distribution facility
Brady Corp. is planning a 60,000-square-foot expansion of its Good Hope Road facility in Milwaukee for a central distribution center. The $10 million project will consolidate warehousing and distribution services from several Brady U.S. locations, providing increased distribution efficiency as well as improved logistics for customers.

The company expects to break ground on land it currently owns adjacent to its corporate headquarters. The entire project is expected to take 12 to 18 months to complete.

"We are delighted to be making this expansion in Milwaukee. While Brady is a global company with operations in 21 countries, Milwaukee has been our home for many years and we remain committed to our future here," said Frank M. Jaehnert, Brady president and CEO.

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UPS to acquire CNF's Menlo Worldwide Forwarding unit
UPS will purchase CNF Inc.'s Menlo Worldwide Forwarding business for $150 million in cash, plus the assumption of approximately $110 million of debt.

The purchase includes Menlo Worldwide Forwarding’s air- and ocean-forwarding operations in more than 175 countries; its North American services and facilities; its operations hub in Dayton, Ohio; Menlo Worldwide Expedite!; and Menlo Worldwide Trade Services.

Not part of the transaction are Menlo Worldwide Logistics, Menlo Worldwide Technologies, Vector SCM or Con-Way Transportation Services, all of which continue to be owned and operated by CNF.

CNF said it would recognize an after-tax loss on the sale of Menlo Worldwide Forwarding, formerly named Emery Worldwide, of approximately $260 million, subject to adjustments at closing.

“This acquisition is an ideal strategic and operational fit," said Bob Stoffel, UPS senior vice president of its supply chain group. "Menlo Worldwide Forwarding is a well established global air freight forwarder, with international trade capabilities – all of which complement UPS’ existing operations.”

Menlo Worldwide Forwarding has been part of the Menlo Worldwide operating group of companies since 2001. It employs more than 8,000 people around the world and had gross revenues in 2003 of $1.9 billion.

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Unemployment data shows slight growth
The number of jobs created in the U.S. increased by 96,000 during September, and the unemployment rate held steady at 5.4 percent, according to the Labor Department. The consensus estimate by economists had the number of jobs increasing by 150,000.

The number of jobs created during August was also revised downward to 120,000 from 150,000.

Within the goods-producing sector, manufacturing employment dropped 18,000 jobs in September, with job losses occurring throughout the durable and nondurable goods components of the industry.

Manufacturing added 88,000 jobs in the previous seven months, with most of the gains registered from March through May. This decline took a serious chunk out of those gains.

The manufacturing workweek fell by 0.1 hour to 40.8 hours, and factory overtime was unchanged at 4.6 hours.

"The average person on the street might see the 96,000 job gain and an unchanged unemployment rate as good news, but overall this is a very disappointing report," said John A. Challenger, CEO of global outplacement firm Challenger, Gray and Christmas Inc. "A close look at the household survey reveals that the civilian labor force actually fell by 221,000 and the number of people employed dropped by 201,000. Meanwhile, the employer survey shows a disturbing drop in manufacturing employment after several months of increases."

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