The appliance wars
In a preliminary finding, the U.S. International Trade Commission (ITC) has sided with Whirlpool in its anti-dumping petition against Samsung Electronics and LG Electronics. The Benton Harbor, Mich., manufacturer claims it is being harmed by Samsung and LG, which are selling washers made in South Korea and Mexico at below fair value.
The ITC voted 4-1 in favor of the petition, which could lead to the United States imposing anti-dumping penalties and tariffs on residential washer imports by Samsung and LG. The issue is still under investigation by the ITC, which expects to release its final results by February 2013.
In response to the ITC’s preliminary determination, Samsung released a statement pointing out Whirlpool’s dominant market share in the United States and recent announcement of increased earnings. “We are confident that once the full investigation is concluded, it will be concluded that Samsung is in compliance with U.S. trade laws,” the company said.
LG said in a statement that the ITC maintains a “low threshold” for determining violations at this stage and is confident that it will ultimately prevail.
According to the Commerce Department, the United States imported $1.1 billion of washers from Mexico and South Korea in 2010.
On schedule, Marvin’s opens in Fayetteville, Tenn.
After a soft opening earlier this week, the first Marvin’s location in Tennessee will celebrate a grand opening weekend, beginning today.
The store will be the 28th location for Marvin’s Building Materials and Home Centers, and the first in Tennessee. The Leeds, Ala.-based retailer announced plans for the new store back in September.
The store is the first of at least two new store openings the retailer plans for 2012, according to CEO Darrin Gilliam.
Sales rise at HD Supply
Net loss for the quarter, which ended Jan. 29, 2012, was $173 million, compared with a net loss of $203 million in the same quarter of the prior fiscal year.
In full-year results, net sales for fiscal 2011 were $7.72 billion, a 10.1% increase compared with $7.01 billion in fiscal year 2010.
Operating income for fiscal 2011 was $199 million, an improvement of $133 million compared with operating income of $66 million for fiscal 2010. Net loss for fiscal 2011 was $543 million, compared with a net loss of $619 million in fiscal 2010.
“The HD Supply team delivered outstanding, full-year financial results,” said CEO Joe DeAngelo. “We reported our seventh consecutive quarter of year-over-year sales growth and the largest percentage sales increase since 2006 for both the quarter and full year. In addition, we reported our highest gross profit rate since 2005 and our best operating profit since 2007.”