CG&P consolidates supply chain management
Central Garden & Pet has announced the promotion of Paul Hibbert to senior VP supply chain. Hibbert will be responsible for all aspects of the company’s consolidated supply chain operations, including manufacturing, warehousing, procurement, inventory management and distribution. He reports to Gus Halas, president and CEO of Central Operating Companies.
“To better serve our customers and leverage our resources and expertise, we have consolidated our supply chain resources into one organization supporting both our garden and pet operations with Paul at the helm,” said Halas in a prepared announcement. “Paul’s experience and leadership uniquely qualifies him for this role as we focus on delivering a quality customer experience and delivering savings and synergies throughout Central’s supply chain operation."
A supply chain veteran with more than 23 years of experience, Hibbert has been with Central Garden & Pet for two years. He previously held senior level positions with supply chain responsibilities at Spectrum Brands Holdings and Bio-Lab Inc.
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PPG records Q3 income, sales increases
Pittsburgh-based PPG Industries posted third-quarter net income of $311 million, up 18.7% from $262 million in the third quarter of 2010. Net sales for the quarter totaled $3.8 billion, up 8.6% from $3.5 billion in the prior-year period.
“This is the fifth consecutive quarter in which we eclipsed our prior quarterly earnings record,” said Charles Bunch, PPG chairman and CEO. “This consistent improvement in performance, especially in light of today’s economic backdrop, demonstrates the value of our management’s aggressive focus on operations and the continuing benefit of the structural changes that we have made to the company the past few years, including lowering our cost base and expanding in emerging regions. In addition, these results reflect the continuing benefits of our disciplined deployment of our strong cash position.”
According to Bunch, all 13 PPG businesses employed higher pricing this quarter to counter higher input costs. “PPG’s overall volumes were flat year-over-year,” he said. “Demand in most markets in North America was up modestly and fairly consistent with the prior quarter’s growth rate. Continued volume gains in emerging regions such as Asia/Pacific and Latin America offset lower demand in Europe, which was driven principally by the company’s consumer-oriented businesses.”
Looking ahead, Bunch is expecting normal “seasonal fourth-quarter patterns” and said the company will implement additional price increases in a number of businesses.
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Continued weakness in home remodeling expected into 2012
Home improvement spending will remain weak through the first half of 2012 thanks to a down economy and housing market, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA pointed to a modest decline in annual homeowner improvement spending over the next several quarters.
“After pulling through the worst of the downturn in home improvement spending, we appear to be entering another period of softening,” says Eric Belsky, managing director of the Joint Center. “The ups and downs in the economy are being reflected in home improvement activity.”
“Absent a more sustained upturn in the broader housing market, particularly in the sales of existing homes, there’s not much to propel growth in home improvement spending,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “Homeowners are continuing to undertake smaller jobs, but are still nervous about larger discretionary projects."
￼Designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters, the LIRA provides a short-term outlook of homeowner remodeling activity and is intended to help identify future turning points in the business cycle of the home improvement industry.
The Remodeling Futures Program, initiated by the Joint Center for Housing Studies in 1995, is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States. It seeks to produce a better understanding of the home improvement industry and its relationship to the broader residential construction industry.
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