Motion Industries names VP of inventory management
Metalformers expect economic activity to increase
Parker Hannifin executive dies in private airplane crash
Timken distributes new line of industrial lubricants
NIRA elects officers, board of directors
Tompkins releases creative calendar for 2004
Barnes Group launches new corporate Web site
Textron revises earnings guidance upward
Acme Staple purchases Wiggle Wire Benders
IBC adds Georgino Industrial supply to distributor group
NewAge Industries to celebrate 50 years in business
Grainger reviews initiatives, outlook with analysts
Industrial production climbs in November
Viking Industries purchases Viking Air Tools Inc.
Motion Industries announces executive appointments
Stanley Works acquires CST/Berger for $62 million
ITW reports improved revenues during latest three months
Hughes Supply inks shoe deal with Footwear Specialties

Motion Industries names VP of inventory management
Industrial MRO distributor Motion Industries promoted Zahir Hameer to vice president of inventory management, according to Motion Industries' president and CEO Bill Stevens.

Hameer began his career with Berry Bearing Company in 1972 and became vice president of information systems and operations in 1993. The Berry and Motion corporate groups consolidated in 1998, and Hameer moved to Birmingham, Ala., where he has served as assistant vice president since 1999. He will continue to be responsible for the departments of inventory control and coding/costing and will head up the company's pricing initiative.

"We congratulate Zahir on his new position and thank him for his many contributions to our company," said Stevens. "We look forward to his leadership in these key areas as we all work to deliver the difference."

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Metalformers expect economic activity to increase
Expectations for increased trade and industry activity have hit a 20-month high, according to the Precision Metalforming Association (PMA) Business Conditions Report. Conducted monthly, the report is an economic indicator for the manufacturing world, sampling 161 manufacturing companies.

Information is based on conditions as of Dec. 1, 2003.

When asked to compare their expectations for general economic activity for the next three months with today, 53 percent said activity would increase, a 12 percent rise from last month and the highest percentage since April 2002. Only 8 percent anticipated a decrease, while the remainder, 39 percent, expected no change.

Hopefulness continued with respondents of another survey question that asked about the trend of incoming orders for the next three months. Forty-seven percent thought orders would increase, up slightly from November, and 15 percent higher than one year ago. Forty-one percent predicted that orders would remain the same, and 12 percent said they would decrease.

Positive results also emanated from the question that inquires about percentage of layoffs. For the second consecutive month, companies with workforce on short time or layoff has declined to just 17 percent for this report.

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Parker Hannifin executive dies in private airplane crash
Parker Hannifin gear pump division general manager Jaime F. Beingolea died Dec. 17 in the crash of a private airplane en route from the Sanford-Lee County Airport in North Carolina to the Outer Banks, N.C.

Four others on the plane survived, three of whom (Mary Rollins, Robert Pajor and Monika Wolak) are also Parker employees. The group was on personal time, headed for the First Flight Celebration.

Beingolea was a 24-year employee of Parker and was responsible for the company's gear pump business with facilities in Kings Mountain, N.C.; Sanford, N.C.; Youngstown, Ohio; Sarasota, Fla.; and Monterey, Mexico.

He joined Parker in 1979 and held a number of management positions with increasing responsibility throughout his career including product sales manager, plant manager and general manager at several divisions within the corporation.

He was promoted to general manager of the gear pump division in July 2003.

He received his bachelor's degree in mechanical engineering and a M.B.A. in management science and operations research from Tulane University.

A resident of Raleigh, N.C., Beingolea is survived by his wife Teresa, son Daniel and daughters Katherine and Monica.

"We are terribly saddened by this loss, yet are grateful the others survived," said Parker hydraulics group president Lee Banks. "Our hearts go out to Jaime's family and friends at this tragic time. Our company has lost a bright, young leader who was well-respected and admired by many."

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Timken distributes new line of industrial lubricants
The Timken Company recently began distributing a new line of industrial lubrication products, including All-Purpose Industrial Grease; Off-Highway Grease featuring heavy duty Moly; Pillow Block Grease for ball bearings; Premium Mill Grease; and High-Speed Grease for electric motor ball bearings.

These specially formulated lubricants help bearings and related components function effectively by reducing friction, preventing wear and protecting bearing surfaces from heat and corrosion.

"Proper lubrication is essential to successful bearing performance in demanding industrial operations," said Scott G. Biltz, global manager of new products. "Nearly 50 percent of all bearing damage is related to inadequate or improper lubrication. Timken's new line of lubricants feature high-temperature, anti-wear and water-resistant additives that offer superior protection in challenging industrial environments."

Timken lubricants are application- and environment-specific, added Biltz. For example, the All-Purpose Grease is designed for bearings in high-wear environments with moderate loads, speeds and temperatures, such as those found in agriculture and heavy-duty industrial applications. Off-Highway Grease is appropriate for extreme heat and slow speeds, in applications such as off-highway construction and rock quarry equipment. Pillow Block Grease is intended for ball bearings in wet and corrosive conditions in noise-sensitive applications. Premium Mill Grease offers protection against corrosion and is best for heavy loads, such as in paper and steel mill applications. High-Speed Grease is designed for ball bearings in high-speed, light-load environments in applications such as electric motors and generators.

These new lubricants are ideal for use in Timken bearings and also Timken G-Power and M-Power Single-Point Lubricators, a line of gas and motorized units that deliver periodic lubrication to bearings, as well as chains, guideways, gears and seals.

"All Timken lubrication products and accessories have been developed by leveraging our knowledge of tribology and anti-friction bearings and how these two elements affect overall system performance," said Biltz. "Similar to our bearings, Timken greases are backed by highly trained customer service and technical support personnel."

The new line of Timken grease is available through Timken authorized distributors in the United States.

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NIRA elects officers, board of directors
The North American Industrial Representatives Association (NIRA) board of directors recently elected new officers and board members for the coming two to three years. At its annual meeting, the board approved the following leaders, who will assume their new duties Jan. 1.

Officers for 2004-2005 include:
• John Pittman, chairman of Pittman Industrial Marketing;
• David Turpin, president of Turpin Sales & Marketing Inc.;
• Gary Clark, president-elect of Clark & Associates;
• Teddy Pope, senior vice president of education at Edward H. Pope Ltd.;
• James Surpless Jr., senior vice president of industry and groups at Surpless, Dunn & Co.;
• Craig Lindsay, senior vice president of fiscal and legal for Pacesetter Sales & Associates Ltd.;
• Frank Prenda, senior vice president of membership for Harvey Gerstman Associates Inc.; and,
• Joseph Thompson, NIRA executive director.

Representative directors elected to various terms of office include:
• Doug Ozolins, Tier2 Group Inc., 2004;
• Aimee Matteis, Amval Associates, 2004-2006;
• Mark Simmers, Summer Sales, 2004-2006;
• Tom Eifrid, Eifrid & Company, 2004-2006; and,
• Mike Stevens, Great Lakes Sales & Marketing, 2004-2006.

Travis Horton of Riten Industries Inc. was also elected as a manufacturer director for the 2004-2005 period.

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Tompkins releases creative calendar for 2004
Just in time for the new year, Tompkins Industries is releasing its 2004 edition employee calendar. This year’s theme, Adapters in History, takes a quirky and imaginative look at the role of Tompkins hydraulic adapters in the history of the planet.

Were Tompkins adapters found in King Tut’s tomb? Was the 8603 Heavy Series Metric Compression Tee adapter really spotted on the moon’s surface back in 1969?

The calendar measures 12 inches by 18 inches when unfolded and each month features dramatic photography of an actual historical event as well as a tribute to a different Tompkins employee.

Last year’s calendar was so popular that supplies quickly ran out. This year, Tompkins printed a larger quantity in order to satisfy demand. For a free copy, call Tompkins Industries at or visit www.tompkinsindustries.com.

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Barnes Group launches new corporate Web site
Barnes Group Inc. launched its newly redesigned corporate Web site. The new site offers a number of enhancements over the prior version, including improved navigation, a site search tool and the ability to print individual pages.

"The new site makes it far easier for our constituents to locate the information they are seeking. We've greatly streamlined the information on the site, including that of our three business groups: Barnes Distribution, Associated Spring and Barnes Aerospace. And users will now have more flexibility in reaching out to us through a simplified contact form," said Phillip J. Penn, Barnes Group director of investor relations.

Approximately 50,000 individuals visit the site each year.

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Textron revises earnings guidance upward
Textron Inc. expects full-year 2003 GAAP earnings per share will be between $1.83 and $1.87, with fourth quarter GAAP earnings per share between 54 cents and 58 cents.

Excluding restructuring costs and other special items, the company expects full-year 2003 earnings per share from continuing operations will be between $2.74 and $2.78, with fourth quarter earnings per share from continuing operations between 85 cents and 89 cents, reflecting slightly better cost performance in a number of its businesses.

Textron previously expected full-year 2003 earnings per share from continuing operations excluding restructuring costs and other special items would be between $2.60 and $2.70.

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Acme Staple purchases Wiggle Wire Benders
Acme Staple Company of Franklin, N.H., acquired the staple manufacturing assets of Wiggly Wire Benders of Libertyville, Ill. Acme is a manufacturer and distributor of fine and medium wire specialty staples and fastening systems.

"Wiggly Wire Benders is a well respected and established manufacturer of specialty staples made from large diameter wires, 18 gauge and larger," said Acme vice president and general manager Onno Boswinkel. "We at Acme are very pleased by this acquisition, which will allow Acme to offer the full range of specialty staple products to its customers. As one of the few remaining North American manufacturers in this segment, Acme remains committed and aggressive in meeting the needs of this market."

Acquired assets will be moved to Acme's manufacturing facility in Franklin. The acquisition will be completed in December.

"We anticipate being in full production in Franklin by early January 2004," said Boswinkel.

The business terms of the transaction were not disclosed.

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IBC adds Georgino Industrial supply to distributor group
IBC added Georgino Industrial Supply as a member to its group of industrial supply distributors.

Originally founded as a general line industrial distributor in 1936, Georgino Industrial Supply has grown to serve the powder metal and tool & die paper industries by providing them top of the line tools and supplies combined with unmatched service.

Georgino's main product lines include abrasives, cutting tools, fasteners, fluid power, lubricating oils and power transmission supplies and other general-line MRO products. Their combined manufacturer offering is greater than 600 suppliers.

"As a progressive distributor in our area we are looking forward to partnering with IBC and its other members to continue to offer the latest in technology, marketing and technical expertise to our customer base," said Georgino general manager Ron Hetrick.

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NewAge Industries to celebrate 50 years in business
NewAge Industries will celebrate its 50th anniversary in 2004 by taking stock of its accomplishments, focusing on plant and product expansions, releasing a new product catalog, and offering thanks to its loyal customers through enhanced customer service and support.

Started in 1954 by Raymond Baker, NewAge Industries focused on scientific instruments to test the hardness of metals. Baker then began importing a new product from the United Kingdom, a clear, flexible, braid-reinforced PVC hose, which he called Nylobrade.

Today, Nylobrade is one of dozens of tubing and hose items made by the company. NewAge's value-added services have grown to include custom extrusions, thermal tube bonding, heat-formed shapes, custom coiling, post-extrusion fabricating services and hose assemblies. NewAge is now run by Baker's son, Ken.

NewAge plans to add other plastic, rubber and composite materials to its current product offering.

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Grainger reviews initiatives, outlook with analysts
Grainger executives reviewed key business initiatives and provided guidance to members of the financial community Dec. 15 in Boston. Grainger chairman and CEO Richard L. Keyser spoke at the event along with president and chief operating officer Wesley M. Clark; executive vice president of marketing, sales and service James T. Ryan; and senior vice president of finance and chief financial officer P. Ogden Loux.

"This company has real potential to grow. No other broad line supplier of facilities maintenance products in North America has a better understanding of our customers' needs or a better ability to deliver against them," said Keyser. "Today we're here to tell you that we're aggressively targeting growth."

For 2004, Grainger expects revenue growth of 5 percent to 10 percent through gaining market share. The company's forecast is based on economic assumptions of GDP and industrial production growth of 3 percent to 4 percent for 2004.

In his presentation, Keyser discussed economic and global trends and their impact on the end markets Grainger serves.

"The push for productivity directly affects the facilities maintenance industry. The fewer the number of people in a building, less maintenance required and fewer products purchased," Keyser said. 

In order to grow sales in light of these trends, the company is dedicating its resources to those tools and services that save customers time and money. This includes infrastructure investments and a new sales approach designed to aggressively capture market share.

Clark detailed some of the planned infrastructure investments for 2004, which include completing the logistics project and enhancing information systems by accelerating completion of its ERP platform. It will replace existing legacy systems and is scheduled for completion during 2005.

Ryan described the multi-year market program, which includes extending the company's sales, branch and local marketing coverage. The company is projecting incremental sales of $350 million and incremental operating earnings of $50 million in 2009 from markets initiated this year and next.

Loux presented company performance for 2003 and expectations for 2004 and beyond. Sales for the year are expected to be flat vs. 2002, although November daily sales were up 4 percent vs. November 2002. Grainger expects to come in at the lower end of its 2003 earnings per share guidance of $2.43 to $2.51, reflecting lower sales, start-up costs of the new market programs, severance and other one-time costs in the fourth quarter.

Looking to 2004, the company expects operating margins between 8 percent and 8.4 percent affected in part by costs from the expansion program and the systems project. Grainger forecasts earnings per share of $2.45 to $2.70. The company is expecting capital expenditures in 2004 of $200 million to $225 million and cash from operations of $250 million to $300 million.

Loux shared with investors the company's five-year outlook, which forecasts sales of $7 billion and operating margins between 9.5 and 10 percent.

"You see it's all about service, and we wrote that book. The service wrapped around the product is Grainger's differentiating factor. It's what we've been doing for 76 years," said Keyser. "We know what facilities maintenance customers expect and need: the right products, in the right place, at the right time."

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Industrial production climbs in November
Industrial production rose 0.9 percent in November, its largest increase since October 1999, according to the Federal Reserve. At 112.9 percent of its 1997 average, output was 1.6 percent above its level in November 2002.

Despite a small decline in the production of motor vehicles and parts, manufacturing output climbed 0.9 percent in November. Capacity utilization for total industry moved up 0.6 percent to 75.7 percent, a level 0.3 percent higher than its year-earlier level but 5.6 percent below its 1972-2002 average.

The production of durable goods increased 1.4 percent; gains were widespread across industries. Increases of more than 1 percent were recorded in several industries, including computers and electronic products, machinery, miscellaneous goods, primary metals, nonmetallic mineral products, and furniture and related products.

Among the high-tech industries, all three major sectors -- computers, semiconductors, and communications equipment -- posted gains for the second consecutive month.

The production of industrial materials increased 1.1 percent, and the production of construction materials increased 1 percent.

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Viking Industries purchases Viking Air Tools Inc.
Air and portable tool manufacturer Viking Industries of Lake Forest, Ill., recently acquired Viking Air Tools Inc. of Indianapolis.

“For more than 60 years, Viking air tools and the Viking brand have been synonymous with quality, reliability and value. The company’s patented Dual Piston Straight-Line Sander has become an industry standard. It was the first in a line of highly respected sanders, which improved productivity in auto body shops by cutting labor time 70 percent,” said Viking Industries president and CEO Ernie Torkilsen.

“Over the next few months, we will be expanding the Viking brand with our own line of patented products and leading edge air tools from international sources. These products will be showcased in a new catalog available in January and sold through a global network of distributors,” said Torkilsen.

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Motion Industries announces executive appointments
Industrial MRO distributor Motion Industries saw its supplier diversity manager Chris Lewis named to the Alabama Governor's Commission on Existing Industries. The company also promoted integrated supply president Jim McCullar to the office of corporate vice president of integrated supply and services.

The Commission on Existing Industries is a panel created to find ways to help and promote existing businesses and industries in the state of Alabama with its duties.

"Other states are competing to lure away Alabama's valuable industries, and we must take action to ensure they stay and prosper for years to come," said Alabama Gov. Bob Riley. "The commission will determine the best ways to serve and assist our existing industries."

Lewis began working with Motion Industries in 1998. Previous positions with the company include corporate compliance auditor; MotionMRO support; integrated services support; and corporate management trainee. 

His affiliations and awards include 
• 2003 board chairman of the South Regions Minority Business Council; 
• 2003 board member of the Council of Supplier Diversity Professionals; 
• recipient of the 2002 South Regions Minority Business Council Chairman's Award; 
• recipient of the 2002 Minority Business Advocate of the Year Award;
• member of 100 Black Men of America Inc.;
• member of the National Black MBS Association Inc.; and
• finance chairperson of St. Paul United Methodist Church.

The company also named McCullar corporate vice president of integrated supply and services.

"Our markets continue to change, and one of the most significant changes is the growth of channels into our market," said Motion Industries president and CEO Bill Stevens. "It is important that we align ourselves with integrators, logistics providers, procurement firms and consultants. Jim will be leading our efforts in these areas."

McCullar has been with Motion Industries since 1976. He has served the company in a variety of positions, including branch and regional manager, general manager of Motion's Birmingham division, vice president of Motion Industries, and vice president and president of Motion's integrated supply program TRICOM.

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Stanley Works acquires CST/Berger for $62 million
The Stanley Works will acquire Wateska, Ill.-based Chicago Steel Tape Co. and its affiliated companies, collectively known as CST/Berger for $62 million cash.

CST/Berger's products include laser and optical surveying, leveling and alignment tools, surveyor supplies and accessories sold principally in the Specialty Tools and Fasteners Distributors Association (STAFDA) channel in the U.S., as well as specialty surveyors' and contractors' supply distributors.

"CST/Berger is a strategic bolt-on addition to our tools group," said Stanley chairman and CEO John M. Trani. "Our objective is to move the company from just tape rules to measuring devices and to focus upon professional customers. With its leading market positions in growing categories, CST/Berger meets that objective.

"Earlier this week, we announced the planned disposition of our residential entry doors business," Trani continued. "This CST/Berger acquisition is expected to replace about 35 percent of the revenues and approximately 50 percent of the earnings of the residential entry doors business. This move continues the shift of our portfolio toward favored markets, those with higher inherent growth and profitability. Our two growth platforms, the tools group and security solutions, will account for over 60 percent of revenues in 2004.

"We expect our portfolio repositioning to continue into 2004. The successful best access systems integration demonstrated our ability to do so."

The closing for this transaction is subject to certain approvals, third-party consents and customary conditions, and is expected to occur in the first quarter of 2004.

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ITW reports improved revenues during latest three months
Illinois Tool Works Inc. reported an operating revenue increase of 9 percent for the three months ended Nov. 30. Operating revenues for the three month period consisted of 5 percent growth from acquisitions and a 5 percent contribution from currency translation. Leasing and investments as well as intercompany revenues were essentially flat in the period.

The above growth in the three-month period was offset by a 1 percent decline in base business revenues. The company's base revenue performance continued to reflect uneven end-market activity in North America and internationally.

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

Based on two months of actual results in the 2003 fourth quarter, the company is now forecasting a range of 89 cents to 93 cents for income per diluted share from continuing operations. This new range incorporates an anticipated modest improvement in base business performance as well as a lower income tax rate, which is expected to add 5 cents of earnings in the fourth quarter. For full-year 2003, the company is forecasting income per diluted share from continuing operations to be in the range of $3.33 to $3.37.

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Hughes Supply inks shoe deal with Footwear Specialties
Hughes Supply Inc. launched an exclusive distributor agreement and Web site to sell occupational footwear directly to its customers.

This exclusive agreement allows Hughes to act as the sole distributor in the construction distribution industry of Nautilus steel-toe athletic shoes, waterproof industrial boots, security/public safety footwear, ESD Healthcare footwear, slip-resistant restaurant shoes, and other styles of safety shoes offered by Footwear Specialties Int'l.

To facilitate the shoe sales, the new Web site, www.hughessafetyshoes.com, will feature some of these occupational shoe brands, including Nautilus Safety Footwear.

Features of the Web site include a full-color catalog of men's and women's shoes with searching capability, as well as a secure online ordering form and access to Hughes' promotions that include the shoes.

"We are very pleased to have an exclusive agreement with a company like Nautilus," said Hughes director of sales promotion Mike Dodge. "Safety shoes are a necessity for many of our customers, vendors and employees, and Footwear Specialties Int'l has developed this product from a commodity, to a desired brand of fashionable, functional and ergonomic footwear."

The Web site features free shipping across the continental U.S. and a 30-day money back guarantee.

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