Masco sees declines in the first quarter
Diversified building products giant Masco saw first-quarter net income fall to $2 million from $143 million in the same period last year. Masco’s companies include Delta Faucet, KraftMaid cabinets and Behr paints.
Net sales fell 13 percent to $2.45 billion, down from $2.8 billion in the same period last year.
“The first quarter of 2008 results were adversely affected by significantly lower sales volume to the new home construction market and a continued decline in consumer spending for home improvement products,” the company said in a statement.
The company also cut its full-year guidance due to a variety of factors, including impact from discontinued operations, currency losses and an increased tax rate.
The company saw nearly across the board declines in various businesses, including plumbing, cabinets and decorative architectural products. Sales in Europe and other international locales were up slightly, however.
“Although the company expects market conditions in its industry, over the next several quarters, to be very challenging, the company is confident that the long-term fundamentals for the new home construction and home improvement products markets are positive,” read the statement.
Wal-Mart Canada pays out record bonuses
Wal-Mart Canada store associates are marking a successful fiscal 2007 by sharing a record $45.4 million in bonus payments, based on company and store goals, according to the retailer.
“This represents the company’s greatest bonus payout in its 14-year history,” the retailer said in a statement.
Wal-Mart Canada began a bonus program in 1994 when the retailer took over the country’s Woolco stores. This year, 242 of 299 stores nationwide paid bonuses to eligible part- and full-time associates under the program — “an average reward was nearly $1,000,” according to the company.
“In keeping with a policy of open communication, Wal-Mart store management shares detailed sales and profitability progress figures with store associates daily,” the statement said. “This year’s record bonus payment reflects Wal-Mart Canada’s success in a year in which it responded to significant industry challenges”
Successful initiatives included responding quickly to the higher Canadian dollar with lower prices and keeping stores opened “around the clock” in the lead-up to Christmas.
“Pricing and operational strategies, the continued growth of our supercentre program, marketing campaigns promoting our price leadership and many other factors brought customers to our stores last year,” said Jim Thompson, Wal-Mart Canada’s senior vp-operations. “However, it was our store associates that delivered a phenomenal performance in a tough year for retail.”
Menards plans new southern Ohio location
Menards plans to build a new 144,107-square-foot store in Hamilton, Ohio, according to a report in the Oxford (Ohio) Press.
The Menards store is in the initial stages of zoning approval in Fairfield Township, Ohio. Current plans call for the Menards to anchor a 52.8-acre shopping center.
According to the report, the retailer was eyeing a smaller site, but halted that plan because of annexation issues between two local municipalities. The new store is “35 percent larger” than in that previous plan.
Ohio has been a growth spot for the big-box retailer — other new stores in the state are located in Mansfield, Lancaster and Marion.