Volume 18, Number 7
August 29, 2007
 

GENOVA CELEBRATES ITS 45TH YEAR!

Genova began 45 years ago with one man’s dream to simplify the lives of others by manufacturing complete, maintenance-free, do-it-yourself, plumbing systems with PVC.  This goal was successfully accomplished and his concept soon poured into other building material products.  Today, Genova continues to improve the lives of millions of satisfied customers with complete gutter, fence, railing, and decking systems, all manufactured with PVC.  Along with the advancement of communication technology, manufacturing technology has also improved.  Genova has evolved with the changing times providing the best value for our customers with increased manufacturing efficiencies on our current products and expanded building material lines with additional colors, sizes, and styles.  With all of the changes that accompanied the past 45 years and all that are sure to come, there are aspects of Genova that have and will remain unchanged.  Genova continues to produce the highest quality products in the industry.  Vinyl Decking and Railing products have gained ICC approval and all building materials exceed national building code requirements.  Customers continue to trust their reputations with Genova.  Genova continues to offer a Lifetime Warranty on all its products made possible by the expertise in engineering and manufacturing.  Projects made with Genova’s Vinyl Building Products are just as durable years later as the day they were constructed.  Genova continuously evaluates the products, programs, and services it offers, focusing on its mission: growth through innovation, service, and customer satisfaction.  We assess industry fluctuations and examine customer preferences and demands when researching new products in order to ensure success in manufacturing and marketing.  Looking into the future, one must wonder what other products Genova will be manufacturing out of vinyl, enhancing people’s lives.  One can only wait and see what revolutionary products will be stamped with the Genova logo at our 50th anniversary.

NEWELL RUBBERMAID HIRES PROCTER & GAMBLE VETERAN

Housewares manufacturer Newell Rubbermaid announced Ted Woehrle will join the company in the newly created position of senior vice president – marketing and brand management.  Woehrle formerly worked as vice president marketing in North America for Procter & Gamble, where he led communication efforts, media buying and direct marketing. He also serves on the board of directors for the Ad Council and as a committee chair for the Association of National Advertisers.  In his new position, Woehrle will partner with the company’s global business units to build consumer-focused new product innovation and brand management.

WERNER CO. NAMES CHIEF EXECUTIVE OFFICER

ALSO ANNOUNCES SIGNING OF LETTER OF INTENT TO PURCHASE ASSETS OF GREEN BULL LADDER

Werner Co. has named William T. Allen as chief executive officer of the company to succeed Interim CEO James L. Loughlin, Jr.  Mr. Allen formally assumed the CEO responsibilities on August 6, 2007.  “Bill Allen is an outstanding executive with extensive experience in managing businesses and providing leadership to manufacturing operations for over 30 years,” said Stephen H. Deckoff, chairman of the board of Werner.  In addition, Werner Co. announced that it entered into a letter of intent to purchase substantially all of the assets of Green Bull Ladder Company and certain affiliates.  The transaction is expected to close within the next few months and it is intended that post-closing, Green Bull will be operated as a separate, stand-alone division of Werner.

For more information about Werner Co. and Green Bull, please visit:

Werner Ladder and Green Bull Ladder

VERMONT AMERICAN RECEIVES HIGHEST VFW AWARD

At the 108th Veterans of Foreign Wars (VFW) National Convention, Vermont American Power Tool Accessories was bestowed the VFW’s highest honor, the Commander-In-Chief’s Gold Medal of Merit. Vermont American was recognized for “their exceptional services rendered to the country, community and mankind and their unwavering commitment to the country’s military families through their leadership with the Unmet Needs Program.”  As of July 2007, Unmet Needs had distributed more than $1.6 million dollars to 1,150 families across the country in the form of grants. Grants from the program have helped many military families with urgent financial needs, including medical expenses, home repairs, car repairs, infant needs, rent/mortgage and more.

HOME DEPOT HIT WITH $10M ENVIRONMENTAL CHARGE

Home Depot has agreed to pay $9.9 million to settle charges that it failed to properly store and transport hazardous waste, according to reports.  The civil case was filed by the California Attorney General and district attorneys from Los Angeles, Monterey, Riverside, San Joaquin and Santa Clara counties.

Full Press Release

SEARS NAMES NEW CHIEF MARKETING OFFICER

Sears Holdings names Richard Gerstein as chief marketing officer for its Sears, Roebuck and Co. subsidiary effective August 6.  Gerstein last served as global chief marketing officer and senior vice president of U.S. business for Alberto Culver Beauty.  Gerstein will have overall responsibilities for executing Sears’ brand marketing strategies and programs.  

JULY SAME-STORE SALES UP 2.6 PERCENT AT MAJOR CHAIN STORES

Retailers posted an industry-wide comparable-store sales gain of 2.6 percent for the month of July, according to the International Council of Shopping Centers’ (ICSC) tally of 60 leading retailers.  Luxury stores outperformed other retail sectors during the month, growing their comparable-store sales 10.3 percent. Furniture chains reported the steepest decline, at 8.6 percent.

CONSUMERS PREFER ENTERTAINING OUTDOORS

If the weather permits, eight out of ten consumers prefer outdoor entertaining to indoor entertaining, according to a survey from the consumer research firm NPD Group. The finding bodes well for categories such as gazebos and outdoor fireplaces.  Separately, the survey on the outdoor entertaining habits of consumers found that 84 percent of respondents said they generally enjoy entertaining outdoors.  Of this group, three-fourths agreed that outdoor entertaining “feels more laid back than formal entertaining.”  These numbers, according to NPD’s Mark Delaney, director of home improvement, indicate the broad appeal of casual entertaining. “But they still want to make their outdoor space more formal by giving it an added sense of ambiance and comfort,” he said.  (The survey data was supplemented by consumer data from the NPD home improvement tracking service and POS data from the housewares tracking service.)

CLASS ACTION LAWSUIT TO PROCEED AGAINST LOWE’S

A California State Court of Appeals has granted class action status to a group of current and former Lowe’s employees suing the retailer for unpaid overtime. The California Appellate Court 2nd District reversed a lower court’s decision, clearing the way for the case to proceed on behalf of hourly workers employed by Lowe’s since October 29, 1997.  The original complaint, filed in Los Angeles Superior Court in 2001, claims that Lowe’s restricted or refused to pay overtime but required employees to work “off the clock” until their assignments were complete. The Los Angeles trial court ruled in 2003 that the case should be adjudicated on behalf of individual plaintiffs. It also denied a motion to compel Lowe’s to provide the names and addresses of all its hourly California employees.  The three-person appellate panel disagreed, granting class action status to that case. The potential number of plaintiffs could exceed 25,000 people, according to court documents.

SCOTTS 3Q SALES UP 5 PERCENT

The Scotts Miracle-Gro Company released third fiscal quarter financial results showing sales improved 5 percent to $1.10 billion. Net income for the quarter ended June 30, 2007 fell 3 percent to $129.7 million from $133.3 million in the year-ago period.  For the first nine months of the year, net sales are up 7 percent to $2.36 billion from last year’s $2.21 billion. 

For full release from the company visit: Scotts 3Q Sales

NEWELL RUBBERMAID 2Q SALES UP 4 PERCENT

Newell Rubbermaid reported net sales for the second quarter increased 3.6 percent to $1.69 billion from $1.63 billion in the year-ago period.  Excluding charges, income from continuing operations was $154.6 million in the quarter, compared with $149 million a year ago.

For full report from the company visit: Newell Rubbermaid

STANLEY REPORTS 2Q INCOME UP 12 PERCENT, SALES UP 10 PERCENT

The Stanley Works reported net income for the second quarter increased 12 percent to $85 million from $75 million in the year-ago quarter. Net sales grew 10 percent over last year to $1.123 billion.

WAL-MART ANNOUNCES PRICE CUTS ON 16,000 ITEMS

Wal-Mart Stores announced an aggressive price-cutting program on over 16,000 products with a focus on back-to-school items.  “Let there be no doubt we mean business when it comes to price leadership,” said Bill Simon, EVP and COO Wal-Mart Stores U.S. “We continue to be more aggressive on pricing and are working with key suppliers on upcoming plans for fall and holiday.”

For full press release visit:  Wal-Mart

LOWE’S 2Q EARNINGS UP 9 PERCENT

Lowe’s reported net earnings of $1.02 billion for the second quarter ended August 3, 2007, an increase of 9.0 percent over the year-ago period. For the first half, the retailer reported net earnings down 1.0 percent to $1.76 billion, with diluted earnings per share up 1.8 percent to $1.15.  Sales for the second quarter increased 5.8 percent to $14.2 billion, up from $13.4 billion in the year-ago quarter. For the first six months of the fiscal year, sales are up 4.1 percent to $26.3 billion.  Same-store sales declined 2.6 percent in the second quarter and are down 4.4 percent for the first half of 2007.

The full financial release is here: Lowe's

CONSUMERS PREFER CONTRACTOR REFERRALS

A national survey of homeowners who have hired contractors for home improvement projects showed a strong preference for personal recommendations, with 42 percent using a contractor they found through a family or friend.  Another 28 percent hired someone they had used on previous projects, while 7 percent found contractors through the Yellow Pages.  Retailers who provide installation services were utilized by 7 percent of the respondents.  Overall, respondents gave home improvement stores low marks for project satisfaction.  Only the Yellow Pages ranked slightly lower when comparing project satisfaction to how the contractor was found.  “Surprisingly, those who used a home improvement store-provided contractor did about the same as those who used advertising as the way they found their contractor,” said Fred Miller, president of Consumer Specialists, a marketing consulting firm based in Germantown, Tennessee. He noted that independent referrals got the highest satisfaction ratings from survey respondents.  The full study, called “In the Beginning,” looks at how homeowners approach the critical starting period in home improvement projects and what resources they utilize.

NATIONAL HARDWARE SHOW TO OCCUPY LAS VEGAS CONVENTION CENTER IN 2008

The 63rd National Hardware Show®, featuring Lawn & Garden World™, Homewares™, and New Product World™, returns to Las Vegas, May 6-8, 2008, and -- in response to manufacturers’ and retailers’ feedback -- will occupy the Las Vegas Convention Center.  The combined events will offer home channel retailers of all sizes, a comprehensive preview of the entire home enhancement marketplace including hardlines; hand and power tools; paint and décor; plumbing; automotive; electrical/lighting; security/locks; outdoor living; power equipment; pet and wildlife products; cleaning products; home storage and organization; home, health & safety; decorative lighting; RTA furniture; personal care and gifts; cookware/bakeware; kitchen accessories; and small appliances.  Simultaneously, George Little Management’s The Gourmet Housewares Show®; Global Home Textiles™ and Global Home Décor™, will be held at the Sands Expo Convention Center.

For more information and updates, visit: www.nationalhardwareshow.com

HOME DEPOT FIRES FOUR PURCHASING MANAGERS

Home Depot, according to reports in the Atlanta Journal-Constitution and other media outlets, has fired four purchasing managers for allegedly taking large payments from flooring vendors in exchange for shelf space in the retailer’s stores. 

Full Article

NARDELLI TAKES TOP SEAT AT CHRYSLER

Home Depot’s former CEO Bob Nardelli has been named CEO at Chrysler.  Nardelli also earned a seat on the company’s board of directors.  Recently privatized Chrysler said Nardelli was chosen for his background in operations, experience expected to help in a time when the company is trying to turn around its financial situation. Chrysler was recently purchased by Cerebrus Capital Management, a private equity firm.

WHERE IS HOUSING HEADED?

The housing market will probably hold close to present levels in the months ahead, according to the latest forecast by the National Association of Realtors®.  Existing-home sales are forecast at 6.04 million in 2007 and 6.38 million next year, below the 6.48 million recorded in 2006. New-home sales are expected to total 852,000 this year and 848,000 in 2008, down from 1.05 million in 2006. Housing starts, including multifamily units, are likely to total 1.43 million in 2007 and 1.40 million next year, below the 1.80 million units started in 2006.  “With the population growing, the demand for homes isn’t going away – it’s just being delayed,” said Lawrence Yun, NAR senior economist. “More buyers, and cutbacks in new construction, will eventually draw down the inventory levels and support future price appreciation, but general gains will be modest next year. Serious buyers today have a long-term view of housing as an investment – speculators have left the market.”

To read the full forecast visit: National Association of Realtors

FORECLOSURES SURGED 58 PERCENT IN THE PAST SIX MONTHS

According to the real estate research firm RealtyTrac, the number of homes facing foreclosure rose 58 percent in the first six months of 2007 to 573,397 properties, compared with 363,672 properties in the same period last year.  California saw the highest number of foreclosure-related notices at 104,572 properties, more than 50 percent higher than one year ago and 80 percent higher than in the previous six months. Florida, Ohio and Texas followed with large double-digit increases in foreclosures.

HOUSING STARTS FELL 6 PERCENT IN JULY

Housing starts in July were at a seasonally adjusted annual rate of 1.381 million, 6.1 percent below the June rate and 20.9 percent below year-ago levels of 1.746 million, according to Department of Commerce data.  Building permits in July declined 2.8 percent to an annual rate of 1.373 million units. That rate is 22.6 percent year-ago levels.

To read full report visit: U.S. Census Bureau

EXISTING HOME SALES DOWN 11 PERCENT

Total existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate of 5.91 million units in the second quarter, down 10.8 percent from a 6.63 million-unit pace in the second quarter of 2006, according to a National Association of Realtors report released yesterday.  The national median existing single-family home price was $223,800 in the second quarter, down 1.5 percent from the second quarter of 2006 when the median price was $227,100.

To read full report visit: National Association of Realtors

UPCOMING DISTRIBUTOR SHOW DATES & EVENTS
 

WISDOM

“Nine-tenths of wisdom consists in being wise in time.”