TW Perry accepts Pro Dealer of the Year award
San Antonio — TW Perry accepted the 2011 Pro Dealer of the Year award last week during the ProDealer Industry Summit held here at the Grand Hyatt San Antonio.
"We didn’t win this award by ourselves," said TW Perry CEO Michael Cassidy, in his acceptance speech. "Without all this support, without all the mentors and vendors and people who helped teach us over the years, we wouldn’t be here."
Cassidy’s speech stressed the value of corporate culture, the importance of mentors and the close-knit nature of the LBM industry.
The awards dinner was sponsored by Weyerhaeusuer. Before calling Cassidy to the stage, Weyerhaeuser’s Clarence Wilkerson, VP national accounts, described TW Perry as a "huge influencer" for the industry and a good customer in the Washington, D.C., market. He also congratulated TW Perry for entering into an "elite club" of companies that have been operating for a century or more. The club includes Weyerhaeuser, which was incorporated in 1900.
Gaithersburg, Md.-based TW Perry was founded in 1911 and has seen a long history of innovation. One of the most dramatic changes came in the late 1990s, when the company decided to turn its emphasis away from the DIY customer and toward the remodeler and contractor.
"I’ve worked in a bunch of other industries, and I have never seen an industry like this one in regard to our willingness to coach and support each other," Cassidy said.
The 2011 ProDealer Industry Summit was hosted jointly by Home Channel News and the National Lumber and Building Material Dealers Association (NLBMDA).
Net earnings decline at Weyerhaeuser
Federal Way, Wash.-based Weyerhaeuser reported net earnings of $157 million for the third quarter, compared with net earnings of $1.12 billion in the same period last year. Third-quarter net sales from continuing operations were $1.6 billion, up 6.7% from $1.5 billion in the third quarter of 2010.
“All of our businesses faced challenging markets in the third quarter, as the U.S. housing market languished and we experienced a slowdown in demand from China,” said Dan Fulton, president and CEO. "We remain focused on improving performance with today’s level of demand, while being prepared to flex all of our operations as markets improve."
Discontinued operations include the company’s hardwoods and Westwood Shipping Lines businesses, which were sold in the third quarter.
The Timberlands segment saw earnings declined $50 million in the third quarter compared with the second. Results from continuing operations of the Wood Products segment improved $10 million compared with the second quarter, as reduced log costs were partially offset by slightly lower sales volumes across most product lines. Third-quarter earnings of the Cellulose Fibers segment improved $55 million compared with the second quarter. The Real Estate segment’s earnings increased $2 million compared with the second quarter.
Remodeling Market Index registers decline to 41.7
The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) reported a drop to 41.7 in the third quarter from 43.9 in the second quarter, after posting a four-year high of 46.5 in the first quarter. An RMI below 50 indicates that more remodelers report that market activity is declining than report that it is increasing.
"Remodelers report that while many consumers show interest in having remodeling work done, they are slow to commit to projects,” said NAHB Remodelers chairman Bob Peterso, a remodeler from Ft. Collins, Colo. “Consumers are in a ‘wait and see’ mode with regard to current economic conditions."
The RMI component measuring current market conditions fell to 43.0 from 44.8 in the previous quarter. The RMI component measuring future indicators of remodeling business declined to 40.4 from 43.0 in the last quarter.
All three components measuring current market conditions decreased: major additions to 45.2 (from 46.2 in the second quarter), minor additions to 45.7 (from 48.5) and maintenance and repair to 37.1 (from 38.4). Future market indicators decreased: calls for bids to 45.4 (from 49.8), amount of work committed for the next three months to 29.9 (from 32.3), backlog of remodeling jobs to 43.0 (from 45.7) and appointments for appraisals to 43.3 (from 44.2).
Regionally, current remodeling market conditions shrank in the Northeast to 43.9 (from 48.1 in the second quarter) and the West to 40.9 (from 48.2). Increases were noted in the Midwest at 46.8 (from 44.4) and the South at 47.1 (from 42.9). Future market indicators fell in all regions, except for the South, where it increased to 42.2 from 41.6 in the second quarter.
“The current economic instability continues to affect consumer confidence, therefore we have seen a drop off in remodeling activity for the last two quarters,” said NAHB chief economist David Crowe. “In order for the remodeling market to pick up, homeowners need to have access to less restrictive lending requirements and see their economic future stabilizing.”