Floor tile manufacturer finds use for old drywall
Mannington Mills, a 96-year-old flooring company headquartered in Salem, N.J., has found a way to incorporate vinyl tile scraps and recycled drywall into its manufacturing process in an effort to generate less waste, according to an article in the Philadelphia Inquirer.
The family owned company, now operated by fourth-generation chairman Keith Campbell, uses 190 lbs. of recycled materials in their products for every 100 lbs. of waste generated through their manufacturing, according to the article.
The powered drywall comes from demolition and construction sites and replaces limestone at the base of tiles. Recycled paper is used on the backs of vinyl flooring. Vinyl scraps are also ground up and reused. The company has received several awards from local and state environmental groups.
Mannington has factories and warehouses in six cities across the United States, and produces resilient, laminate, hardwood, porcelain and ceramic tiles for the residential and commercial markets, as well as commercial carpet and rubber flooring.
Sales increase at HD Supply
HD Supply has reported net sales for its fiscal 2011 first quarter were $1.88 billion, an increase of 4.4% compared with $1.8 billion in the first quarter of fiscal 2010.
Net income for the first quarter, which ended May 1, 2011, was $164 million, compared with $202 million in the same quarter a year ago. Operating income for the first quarter of fiscal 2011 was $12 million, an improvement of $33 million compared with an operating loss of $21 million for the first quarter of fiscal 2010. Operating income is normally the weakest in the first and fourth quarters due to seasonality of the construction industry, the company noted.
In a prepared statement, company CEO Joe DeAngelo said: “We posted our fourth consecutive quarter of sales growth despite prolonged economic headwinds. The growth was driven by our associates’ intense focus on serving customers in our core markets, sales initiative execution in adjacent markets and specialization of activities to further penetrate specific customer segments.”
The Atlanta-based company experienced some improvement in its industrial and non-residential markets, DeAngelo said, but expected residential construction to remain challenging. An expansion of the White Cap division to Nashville brings that segment’s location network to 132 branches in 29 states.
“We now operate approximately 770 facilities across our business, and it is the first time we have increased our location count since 2007," DeAngelo noted. “At the close of the quarter, we completed the acquisition of RAMSCO to further strengthen our waterworks business in the Northeast. Furthermore, our strong liquidity allows us to continue to invest in organic growth initiatives, as well as potential bolt-on acquisitions.”
International Paper makes takeover bid for Temple-Inland
Temple-Inland, one of the industry’s largest producers of wood and paper products, announced June 6 that it has received an unsolicited offer from International Paper Co. (IP), another pulp and paper giant, to acquire the company for $30.60 per Temple-Inland share in cash.
Temple-Inland’s board of directors voted unanimously to reject the offer “after careful consideration with its independent financial and legal advisers,” according to a public statement. IP’s proposal “grossly undervalues Temple-Inland and is not in the best interest of Temple-Inland’s stockholders,” the board said.
In a letter to IP’s chairman and CEO, John Faraci, the chief executive of Temple-Inland made his intentions clear.
"Since we launched the ‘new’ Temple-Inland in January 2008, we have delivered superior results to our stockholders compared with our corrugated packaging peers (including IP), building products peers and the S&P 500,” wrote Doyle Simons, Temple’s chairman and CEO. “Since that time, our total return to stockholders of 22% greatly exceeds the 5% total return that IP has achieved. Through our proven ability to execute our strategy focused on maximizing return on investment (ROI) and profitably growing our business, the board believes the company will continue to provide superior results for our stockholders."
Simons also stated that, "As the economic recovery continues and the benefits from our strategy continue to be realized, it is the stockholders of Temple-Inland who should gain from those anticipated benefits, not the stockholders of IP."
Among the many reasons listed in the letter were expected opposition from governmental antitrust authorities, “extremely opportunistic timing” of the offer and an overstatement of Temple-Inland’s net debt.