LP CEO: No ‘sissies’ left in the business
Louisiana-Pacific CEO Rick Frost has a theory as to why the LBM industry isn’t seeing more consolidation.
"It’s over-simplistic and you’ve heard me say it and everybody laughs at me when I do, but there aren’t any sissies left in this business," he said during the company’s fourth-quarter earnings call. "Nobody wants to give up their shop and let somebody else own them. It’s my opinion."
Frost was responding to a question from analyst Mark Wilde, of Deutsche Bank, who asked why the industry hasn’t seen more consolidation given the "extent and duration of this downturn in the housing market."
LP CFO Curt Stevens added that the channel has seen 7,000 yards close.
The company posted sales and earnings gains for the year and the quarter ended Dec. 31, 2010.
At BMC: Sales and souvenirs
Boise, Idaho-based BMC rallied its sales force during the company’s National Sales Meeting in Las Vegas Feb. 8-10.
During the meeting, BMC CEO Peter Alexander and the executive team detailed the company’s strategy to their entire sales and management group. The event also featured a Vendor Showcase and Product Education day with more than 40 exhibits from the industry’s leading suppliers.
"This event gets everyone aligned about our objectives, with straight talk about the bunkers we have captured and are yet to capture and ensures our group is the best trained, best motivated and best equipped sales force in the business," Alexander said. “Today, we have a clearer organization led by some of the very best, most ethical business leaders in the distribution space.”
The event’s keynote speaker was Archie Manning, the former NFL quarterback who fathered two current NFL quarterbacks — Eli and Payton.
Georgia Gulf acquires siding manufacturer
Georgia Gulf Corp., an Atlanta-based public company, has announced the purchase of Exterior Portfolio by Crane, a siding manufacturer owned by the Crane Group, for approximately $72 million. Headquartered in Columbus, Ohio, Exterior Portfolio is a leading U.S. manufacturer and marketer of siding products with 2010 revenues of approximately $100 million.
"This acquisition is a strong fit with our Royal Building Products business, and the combination will create the third largest vinyl siding manufacturer in North America,” said Paul Carrico, president and CEO of Georgia Gulf in a press release. “We expect this acquisition to be accretive in 2011, excluding one-time costs, and to fund the acquisition out of cash on hand.”
Georgia Gulf Corp. is an integrated North American manufacturer of two chemical lines, chlorovinyls and aromatics, and manufactures vinyl-based building and home improvement products. The company’s vinyl-based building and home improvement products, marketed under Royal Group brands, include window and door profiles, mouldings, siding, pipe and pipe fittings, and deck, fence and rail products.