CPG International reports strong third quarter
CPG International, the parent company of AZEK Building Products, reported earnings of $342,000 in the third quarter, swinging from a loss last year of $756,000.
Sales rose 25 percent to $82.55 million compared with $65.75 million in the same period last year.
“Although the residential housing market further weakened in the third quarter, CPG continued to execute on its business plan achieving impressive growth for the quarter,” said Glenn Fischer, CPG’s interim CEO.
Highlights of the third quarter include expansion of the company’s PVC deck manufacturing capabilities, with CPG adding further manufacturing capacity at plants in Alabama and Pennsylvania. Additionally, the company kicked off a 98-store test program of its AZEK Trim product in Home Depot stores.
CPG International, based in Scranton, Pa., markets products under several brands including AZEK Trim and Mouldings, AZEK Deck and Santana Products.
BlueLinx announces consolidation
BlueLinx Holdings, a nationwide distributor of building materials, has announced plans to eliminate underperforming skus from its assortment as part of a cost-cutting effort. The company plans to “aggressively sell through its inventory in these skus” commencing in the fourth quarter, according to a prepared statement.
No details were given on which skus have been targeted, or how many are involved. BlueLinx will also consolidate its Atlanta headquarters and sales center into one building, thereby saving a projected $1 million to $1.5 million in operating expenses in 2008. Both buildings are leased facilities, and declines in headcount have produced excess capacity. According to the statement, both moves were prompted by the nprolonged downturn in the housing market.i
Management changes at Newell Rubbermaid
Storage and housewares manufacturer Newell Rubbermaid has announced key senior management changes with the goal of “speeding the company’s transformation into a marketer of consumer-driven brands.”
James Roberts has been appointed executive group president-office products and cleaning, organization and decor. Roberts has been responsible for Newell Rubbermaid’s tools and hardware and cleaning; and organization and decor segments since 2003. He will retain responsibility for cleaning, organization and decor, while assuming the additional responsibility for office products.
William Burke III will succeed Roberts as group president-tools and hardware. He also will retain responsibility for the company’s Lenox Industrial Products and Services business in North America until a successor is named at a later date.
Steven Marton has been named president-special assignments, after heading up the company’s office products segment since 2004.
The management changes are in addition to the recently announced appointment of Jay Gould as group president-home and family. All four executives will report directly to Newell Rubbermaid president and CEO Mark Ketchum.
“These business segment leaders have proven their ability to grow revenue and profit in challenging categories, while building brands, partnering with customers and suppliers and building organizational capability,” Ketchum said.