Record second-quarter earnings at Lowe’s
Lowe’s, the world’s second largest home channel retailer, reported second-quarter earnings of $1.02 billion, up 9 percent from $935 million last year — a record, according to the company.
Sales for the quarter were up 5.8 percent to $14.2 billion from $13.4 billion last year. Comparable-store sales were down 2.6 percent.
The comp-store sales decline was in line with guidance, said chairman and CEO Robert Niblock, “ despite the external pressures impacting our results.”
“Macro economic factors, including the many aspects of the housing market, continue to result in regionally disparate performance,” Niblock said. “Markets in California and Florida, generally considered most pressured by housing, continue to perform significantly worse than average.”
Comparatively, the company’s markets in the Northeast, while still producing negative comparable-store sales, showed “encouraging signs of improvement” during the quarter, he said.
Lowe’s opened 26 new stores in the United States during the quarter, bringing the company’s total store count as of Aug. 3 to 1,424 stores in 49 states. The company expects to open 40 new stores in the third quarter. Sales are anticipated to increase between 7 percent and 8 percent, and comp-store sales are expected to remain flat next quarter, according to Lowe’s.
Home Depot elects new board member
Home Depot has named Armando Codina the 12th member of the company’s board of directors.
Codina, 60, is president and CEO of Flagler Development Group, a Florida-based commercial real estate firm.
Flagler is a subsidiary of Florida East Coast Industries (FECI). FECI was acquired in July of this year by funds managed by Fortress Investment Group, a global alternative asset manager with approximately $36 billion in assets under management.
At the time of the acquisition, Codina was the largest private shareholder of FECI, having sold his 26-year-old predecessor firm, the Codina Group, to FECI in April 2006. Prior to establishing the Codina Group, Codina was president of Professional Automated Services, a firm created in 1970 to provide data processing services to physicians.
“We are extremely pleased to have a business leader and entrepreneur of the caliber of Armando Codina join our board of directors,” said Frank Blake, chairman and CEO of Home Depot. “He brings enormous financial, operational and strategic expertise to the board and to our business.”
Southern Milling & Lumber plans South Carolina facility
Florida-based Southern Milling & Lumber will build a $1.2 million manufacturing facility in Calhoun County, S.C., according to the Calhoun Times Democrat newspaper.
The facility will produce lumber, wood pallets and specialty packaging. Construction on the new facility is expected to be completed by the end of 2007.
The manufacturing plant is expected to employ about 50 people in the area, which has recently been investing in economic development.
Based in Lakeland, Fla., Southern Milling & Lumber specializes in wholesale lumber sales and lumber remanufacturing.