Stanley Q1 sales and earnings up
New Britain, Conn.-based Stanley Works reported first-quarter net earnings of $68 million, up 0.6 percent from $67.6 million last year. Net sales were $1.09 billion, up 3.3 percent from $1.06 billion last year.
John Lundgren, chairman and CEO of Stanley Works, noted the company’s consumer DIY sales were flat, but the company’s industrial segment saw growth.
“Our Engineered Solutions business was strong, and of course we were helped by foreign exchange,” he said. A stronger performance outside the United States, particularly in Europe, helped offset some of the sales declines as well, he added.
The company saw flat revenues in consumer tools and storage, as well as in the company’s Bostitch business.
“The U.S continues to be adversely impacted by the residential construction market. That of course affects consumer tools and storage as well as Bostitch,” Lundgren added. “In North America those businesses were both down low single digits in terms of revenue.”
Hardware Technology Forum focuses on EDI, data synch
Memphis, Tenn. While data synchronization has become the new reality for many manufacturers, this year’s Hardlines Technology Forum (HTF) did not overlook Electronic Data Interchange (EDI), the backbone of ordering and billing between retailers and their suppliers. Sessions looked at EDI’s increased use in transportation, the roles played by various EDI documents, and in today’s final presentation, the changing nature of the EDI coordinator’s job.
EDI also surfaced during the Retail Panel, a conference highlight where retailers and distributors discuss their upcoming IT initiatives. There were no major announcements this year, however, as the buyers in the home channel seem to have their hands full with projects they’ve already started.
Approximately 225 people attended the four-day conference, held April 21 to 24 at the Peabody Hotel. Technology vendors peddled everything from EDI outsourcing to data encryption to help with U.S. Customs requirements.
During the two-hour Retail Panel, representatives from Orgill, Lowe’s, Do it Best and True Value answered pre-submitted questions from the audience. Some of the inquiries sounded like repeats from the previous day’s “Seller’s Forum,” where vendors complained about fines and “scorecards” that give them little feedback on what they’re doing wrong.
Brett Hammers, vp-marketing for Orgill, said his organization prefers to works one-on-one with problem vendors. “We don’t just put information out there,” he said. “It’s in our best interest to handle [feedback] strategically rather than globally.”
Greg Linder, director of supply chain operations for True Value, spoke of a visible supply chain solution the co-op is rolling out, through Sterling Commerce, that will result in more consistent lead times for incoming products. True Value is not planning to implement data synchronization anytime soon, he said, adding: “You can synch all the data in the world, but it’s [data] accuracy that keeps us up at night.”
Lowe’s, on the other hand, implemented data synchronization with most of its vendors and has moved on to a marketing data pool initiative. Last year the North Carolina retailer began collecting images and data for Lowes.com and in-store use through Big Hammer, a division of EdgeNet. The retailer is doing the project in phases, with the three categories, lumber, rough electrical and rough plumbing, set to be completed by the end of 2008.
Sales down at Lennox International
HVAC manufacturer Lennox International said earnings fell 26.7 percent in the first quarter, to $6.3 million from $8.6 million in the same period last year. Sales also fell, down 3 percent to $767.1 million from $791.5 million in the first quarter of 2007.
Like many other manufacturers of building materials and other large purchase items, Lennox’s earnings suffered from softness in the housing sector.
“As expected, difficult residential new construction and replacement markets challenged our first-quarter results,” said Todd Bluedorn, CEO of Lennox International. “Disciplined cost reductions, combined with strong performance in our North America Commercial and Refrigeration businesses, helped offset the headwinds.
Bluedorn also said the company is revising its projected full-year revenue expectations because of the downturn in the housing market. The company expects revenue to stay flat compared with last year or rise by up to 2 percent. Initial projections pegged year-end revenue growth of 2 percent to 5 percent.
Of its four business segments, the company saw revenue growth in commercial heating and cooling — up 2 percent — and refrigeration. Revenue from installed services and residential heating and cooling fell in the quarter.