Universal announces Q2 declines, names new CEO
Grand Rapids, Mich.-based Universal Forest Products announced second-quarter net earnings of $4.3 million, down 69% from net earnings of $13.7 million in the second quarter of 2010.
Net sales totaled $544.1 million, down 15% from net sales of $638.6 million for the same period of 2010. Sales were affected by weak consumer spending on larger-ticket home-improvement items.
"These are challenging times, but we are positioning the company for better results. We have cut costs and implemented plans intended to maintain our strengths and capitalize on our opportunities moving forward," said outgoing CEO Michael Glenn. "We’re maintaining a keen focus on costs and on prudent, conservative decision-making that will create opportunities for sustainable growth and success."
In June 2011, Universal announced measures to align its costs with its business, including cuts that the company expects to result in annualized savings of about $10 million.
In other company news, Universal has appointed Matthew Missad as CEO.
Missad, former Universal EVP and general counsel, succeeds Michael Glenn, who resigned in June 2011 for personal reasons.
"Matt has proven his leadership abilities, strategic acumen and business skills in innumerable ways in 26 years at Universal, and I think he’s the perfect person for the job," said chairman William Currie.
Added Dan Dutton, the board’s lead independent director: "Matt will lead a distinguished team that includes president and COO Pat Webster and CFO Mike Cole, a powerful group that will take Universal solidly into the future."
Missad is the fifth CEO in the company’s 56-year history, following William Grant Sr., Peter Secchia, William Currie and Michael Glenn.
HD Supply names new president of Crown Bolt
HD Supply has named Gary Landress as president of Crown Bolt, its retail hardware division. Landress will report to Joe Izganics, senior VP of HD Supply.
Landress will replace Crown Bolt president Jon Michael Adinolfi, who has left the organization to pursue other opportunities.
Landress comes to Crown Bolt from Fu Hsing Americas, a Taiwanese door lock manufacturing company, where he served for 13 years as senior VP in charge of U.S. operations. Prior to Fu Hsing Americas, Landress held senior executive roles with Test Rite, Titon Industries, Mr. HOW and Triangle Home Products. In these positions, he has led operations, manufacturing, supply chain, sourcing, sales, merchandising, marketing and product/package design.
Landress has worked with a variety of customers in different retail channels, including big-box retailers, co-op hardware organizations and independent hardware companies. He has also engaged in significant negotiations with global suppliers throughout Asia.
IP launches hostile takeover bid for Temple-Inland
After being rebuffed by Temple-Inland’s board of directors, International Paper is making an unsolicited offer to acquire all the outstanding shares of common stock of the wood products company for $30.60, according to documents filed with the Securities ad Exchange Commission (SEC).
On June 6, Temple-Inland announced it had received an unsolicited proposal from International Paper to acquire the company, also for $30.60 per share in cash. Temple-Inland’s board of directors voted unanimously to reject that offer, saying it “grossly undervalued” the company and was not in the best interest of Temple-Inland’s stockholders.
In its communications with Temple-Inland stockholders, International Paper said it has tried to negotiate with Temple-Inland “multiple times.” International Paper will finance the $3.7 billion deal with $1.5 billion in cash and the rest in borrowings. The merged company would eventually go private, the communication said.
Temple-Inland’s board advised its holders to take no action at this time while it reviews the latest unsolicited offer. But on June 7, after receiving its first formal proposal from International Paper, the company adopted a “poison pill” plan that significantly increases the number of Temple-Inland shares and erects other barriers if an investor acquires 10% or more of the company’s stock.
Based in Austin, Texas, Temple-Inland produces lumber, gypsum board, fiberboard and other building materials, as well as corrugated packaging.