Weyerhaeuser may sell commercial division
Weyerhaeuser has announced that it is considering the sale of its commercial construction division. The business delivers wood-based framing products, including engineered lumber products, to commercial contractors through three manufacturing plants and 13 design and sales offices throughout the United States.
Lee Alford, senior vp-residential wood products, said in a prepared statement that Weyerhaeuser wants to focus on its core strategies in the residential structural frame market.
Weyerhaeuser gave no time frame for completing the review and said it could ultimately decide to hold on to part or all of its commercial assets.
Headquartered in Federal Way, Wash., Weyerhaeuser’s sales in 2006 were $21.9 billion.
Whirlpool up in the fourth quarter
Still seeing the benefits of its 2006 acquisition of Maytag, Whirlpool reported higher fourth-quarter earnings of $187 million, up 71.6 percent from $109 million last year. Sales for the quarter were $5.33 billion, up 7.7 percent from $4.95 billion last year.
For the full year, net earnings rose 47.8 percent to $640 million from $433 million in the previous year. Sales for 2007 were $19.4 billion, up 7.2 percent from $18.1 billion last year.
Whirlpool announced intentions last week to close plants in Tennessee and Mexico, affecting about 1,250 workers. The company said it would eliminate 500 jobs from a plant in La Vergne, Tenn., and a further 750 jobs at a plant in Reynosa, Mexico. Production of built-in refrigerators made in Tennessee will move to the company’s Fort Smith, Ark., plant, which plans to add about 275 jobs by December, the company said.
Jeff Fettig, chairman and CEO of Whirlpool, credited international strength for offsetting a weaker domestic climate.
“Our performance in this environment highlights the strength of our global brands and the geographic diversity of our global operating platform,” Fettig said.
Whirlpool’s North American sales fell by just under 1 percent to $3 billion, while sales in its Latin American segment grew 30 percent to $1 billion. European segment sales rose 12 percent to $1.1 billion, and Whirlpool Asia sales grew 26 percent to $155 million.
ProBuild completes purchase of HD Supply lumberyards
ProBuild Holdings has announced the completion of its purchase of HD Supply’s LBM assets, a collection of 39 lumberyards, seven truss plants, 10 engineered wood production facilities and a construction services division, all located in Florida and Georgia.
Terms of the sale, first reported by Home Channel News late in November, were not disclosed. The purchase follows other acquisitions in the Florida and Georgia markets by the Denver-base ProBuild, now the nation’s largest distributor of building materials to professional customers. In a prepared statement, CEO Paul Hylbert said the company will continue to pursue an aggressive strategy in the Southeast, which he described as a “long-term, high-growth housing market.” ProBuild now operates more than 520 locations in 40 states.
The remainder of HD Supply is still owned by three private equity groups, who bought the entire division from Home Depot on Aug. 23 for $8.5 billion. The LBM side of the business, now spun off to ProBuild, was built upon three major acquisitions: Williams Bros. Lumber outside Atlanta; Cox Lumber in St. Petersburg, Fla.; and Forest Products Building Materials in Sarasota, Fla.