Wal-Mart releases sustainability report
Wal-Mart released a comprehensive report on its sustainability efforts Nov. 15, outlining the company’s initiatives to improve the environment, health care, diversity, sourcing and highlighting the work of its foundation.
The report states that Wal-Mart is committed to three main environmental sustainability categories:
• Existing stores 20 percent more efficient in seven years
• New stores 30 percent more efficient in four years
• Fleet 25 percent more efficient in three years, double in 10 years
• 25 percent reduction in solid waste in three years
• All private brand packaging improved in two years
• 20 percent of the company’s supplier base aligned with its sustainability goals in three years
• Preference given to aligned suppliers in two years
This companywide emphasis on sustainability is called “Sustainability 360.” The company said that it has invested $500 million per year to reach its goals.
The report also highlights how the company plans to meet these goals, including working with suppliers to develop new technologies and manufacturing techniques and installing light emitting diodes (LED) into refrigeration displays. In May 2006, the company installed auxiliary power units (APUs) — small, efficient diesel engines — on all its trucks that make overnight trips. Drivers can turn off their truck engines and rely on the APUs to warm or cool the cabin and run communication systems while on breaks.
As previously reported by HCN, Wal-Mart surpassed its goal to sell 100 million compact fluorescent light bulbs by the end of 2007 earlier this year.
Lumber Liquidators closes IPO
Toano, Va.-based specialty hardwood flooring retailer Lumber Liquidators has closed its initial public offering.
The company offered 10 million shares of common stock at a price of $11 per share, including 3.8 million shares offered by the company and 6.2 million shares offered by selling stockholders.
The company intends to use the net proceeds of approximately $36.4 million from the offering to repay outstanding debt and support the growth of the business, which includes plans for 25 stores in 2007, followed by 30 to 40 new stores per year until 2011.
Goldman Sachs and Merrill Lynch acted as joint book-running managers with Lehman Brothers, Banc of America Securities and Piper Jaffray serving as co-managers for the offering.
Lumber Liquidators has seen same-store sales growth of 8.5 percent to 9 percent each quarter this year. According to the company’s S-1 filing with the Securities and Exchange Commission, in 2006 Lumber Liquidators had sales of $332 million, up 35 percent from sales of $245 million in 2005.
The retailer currently operates 111 small-format stores in the United States. The company is traded on the New York Stock Exchange under the symbol “LL.”
NKT Holdings withdraws initial public offering
Providence, R.I.-based HVAC company NTK Holdings has canceled its initial public offering according to a Securities and Exchange Commission filing this week.
The company said that the application was withdrawn “due to the unsettled market conditions.” The company had planned to use the IPO proceeds to repay debt.
The announcement was part of Nortek’s third-quarter earnings statement. Nortek, which reported a 4 percent increase in sales, is a subsidiary of NKT.
The company reported net earnings of $37.6 million for the period ended Sept. 29, down 44.9 percent from last year’s earnings of $67.7 million in the same period last year. Nortek also reported net sales of $602 million, up 4 percent from $579 million last year.
NTK Holdings manufactures air conditioning, heating ventilation and home environmental control technology products.