Volume 19, Number 2
February 25, 2008

COOPER CELEBRATES ITS 175TH ANNIVERSARY

Charles Cooper and his brother Elias were making a modest living in 1833 by digging and hauling coal near Mt. Vernon, Ohio. However, they noticed the changing world around them and decided to risk going into business for themselves to make their fortune. Their first products were plows, hog troughs, kettles, and stoves as well as a variety of other iron products. This marked the beginning of the 175 year history of a company that has spanned 37 U.S. Presidents, numerous global events such as the Great Depression and two World Wars, and technological innovations such as the automobile and computer. Throughout this period, Cooper has succeeded by continually innovating its products, improving its business processes, and always focusing on the needs of the customer. As a result, Cooper has emerged as a dynamic company with a history that very few can match, as well as solid growth prospects that position it for sustained success in the future.

For the full press release visit: http://www.cooper175.com/

NEWELL RUBBERMAID SALES UP 3 PERCENT IN 2007

Newell Rubbermaid announced its fourth quarter and full year 2007 results.

Net sales grew 3.3 percent to $6.41 billion, compared to $6.20 billion in the prior year. Foreign exchange contributed 2.0 percent to sales growth. Growth was led by a high single-digit increase in the Home & Family segment and a mid single-digit increase in the Cleaning, Organization & Decor segment. Gross margin was 35.2 percent, a 185 basis point improvement over the prior year. The expansion reflects ongoing productivity initiatives, savings from Project Acceleration and favorable mix. The company now expects sales growth of 2 to 3 percent, compared to management's previous expectation of 3 to 5 percent, reflecting the worsening economic conditions in North America which the company does not expect to improve in 2008.  To read the full story visit: http://ir.newellrubbermaid.com/releasedetail.cfm?ReleaseID=290937

HOME STYLES UNVEILED AT RECENT FURNITURE TRADE SHOW

The recent Winter 2008 Las Vegas Market showcased the very latest home furnishings styles and future trends.  For Style File, the Las Vegas-based World Market Center teamed with Furniture Style magazine to highlight trends for the year ahead.  According to Julie Smith, editorial director of Furniture Style, “During the times when the diversity of looks is great and no single style dominates, the trend-tracker lens focuses on performance and, thanks to green initiatives, origin, as much as it does color, pattern and finish.” Trends dominating the recent Market included:  Eco Home, Distressed Out/Distressed In, Size Matters, Blue Mood, Stow Your Devices, Homage to Antiquity and Luxury Messages. A video version of the style and trend report (hosted by designer Tym DeSanto) may be viewed at: http://www.lasvegasmarket.com/stylefilew08/ 

AMES TRUE TEMPER SALES UP 16 PERCENT

Ames True Temper, Inc., reported the results of the Company’s fiscal 2008 first quarter ended 12/29/2007.  Net sales for the thirteen-week period were $98.8 million, a 16.4 percent increase over $84.9 million for the thirteen week period ended December 30, 2006.  Net loss for the quarter was $3.8 million, compared to a net loss of $9.2 million for the first quarter of fiscal 2007.  “Significant snowfall in Canada and much of the US contributed to the strong retail demand for our snow products at major retailers versus the same period in the prior year.  We are extremely pleased with our ability to quickly react to the spike in demand and exceed our customers’ delivery expectations,” said Rich Dell, President and CEO.  “While we are pleased with our first quarter results, we are continuing to monitor customer demand and working capital requirements as a result of the downturn in the US housing market and its impact on the US economic environment.”  Ames True Temper, Inc. is a leading North American manufacturer and marketer of non-powered lawn and garden tools and accessories. 

To read the full story visit:  http://www.ames.com/PR_021108.pdf

ACE LAYS OFF 20 CORPORATE EMPLOYEES

Ace Hardware confirmed February 19th  that it has laid off 20 corporate employees from various support areas of the company, effective immediately.  “This action was taken to help bring corporate expenditures in line with Ace’s revised bottom line operating expenses, which is compounded by the continued slowdown of both wholesale and retail sales due to the current soft economy and lackluster housing market,” the Oak Brook, Illinois based company said in a statement to Home Channel News. One of the former employees who was informed of his termination on Monday said he was told the cuts were related to the company's effort to return equity to $320 million, the co-op's equity level before its $152 million accounting error. Speaking on condition of anonymity, the source said various field representative positions were among the cuts.  The announcement comes six months after Ace discovered the shortfall in its accounting books, which the company recently confirmed was the result of discrepancies between its general ledger and inventory records. Ace made no comment about whether the layoffs were related to the shortfall. Source: Home Channel News

SEARS HOLDNGS CUTTING 200 JOBS

Sears Holdings Corp., parent company of Sears and Kmart, is reportedly eliminating approximately 200 positions at its headquarters, or about four percent of the 5,000 workers employed there. To read the full story visit:  http://www.ahma.org/ContentI.asp?Page=NOTD/NOTD021308.htm

HOME VALUES DECLINING

The value of existing single-family homes in the country are declining at an annual rate of 8.4 percent, according to the Standard & Poor’s/Case-Shiller Home Price Index released on January 29, 2008.Data through November 2007 shows prices declining for the 11th consecutive month and a full two years of decelerating returns, according to the report. To read the full story visit: http://www2.standardandpoors.com/

FORECLOSURES INCREASE BY 75 PERCENT IN 2007

RealtyTrac, an online foreclosure marketplace, released year-end data from its 2007 U.S. Foreclosure Market Report, which shows a total of 2,203,295 foreclosure filings, default notices, auction sale notices and bank repossessions were reported on 1,285,873 properties nationwide during the year, up 75 percent from 2006. The report also shows that more than 1 percent of all U.S. households were in some stage of foreclosure during the year, up from 0.58 percent in 2006. In Florida, more than 2 percent of households entered foreclosure, and Michigan saw 1.9 percent of households enter foreclosure. Those states, followed by California, Colorado, Ohio, Georgia, Arizona, Illinois and Indiana, all posted foreclosure rates in the nation’s top 10 in 2007, according to the report. Some states with the highest increases in foreclosure filings in 2007 included California (up 238 percent); Florida (up 124 percent); Arizona (up 151 percent); and Nevada (up 215.1 percent). Delaware; Washington, D.C.; and Rhode Island also saw large increases in foreclosure filings. Some states, however, saw fewer foreclosure filings in 2007, including Oklahoma (down 12.8 percent); South Carolina (down 27.6 percent); Texas (down 4.57 percent); New Mexico (down 26.04 percent); and Pennsylvania (down 11.07 percent).  For the Full Report visit: http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=3988&accnt=64847

HOME DEPOT LAYS OFF 10 PERCENT OF HEADQUARTER’S STAFF

Home Depot has announced layoffs of 10 percent of the staff or about 500 employees at its Atlanta-based headquarters.  The reductions were from departments “across the organization and touching every functional area,” Home Depot spokesperson Ron DeFeo told Home Channel News.   “We’re clearly operating in a tough business environment,” DeFeo said. “We started talking about that in 2007, and we were very honest in saying we expected to see this continuing into 2008 (in recent financial statements). We have a firm commitment in investing in our stores. In order to do that, we need to make some changes.” The layoffs were only at the company’s headquarters and do not affect distribution centers or stores. The laid-off workers will receive pay for 60 days, the company said. Source: Home Channel News.

QUEBECOR STAYS IN BUISNESS BUT UNDER BANKRUPTCY

Retailers dodged a bullet, but they’re not out of the woods yet.  Quebecor World, a key printer, will stay in business after all, albeit under bankruptcy protection. It is one of three major printers that handle advertising inserts, flyers and catalogues that are critical to retailers. The other two firms are already working near capacity and can’t take Quebecor clients, which include Kohl’s, Kmart and Sears.  Quebecor’s future is still precarious, so expect some changes. Many of its clients will overhaul strategies, buying more pages of advertising in local newspapers and switching to non glossy inserts and flyers, which can be handled by a number of other printing companies. Source: Kiplinger Letter Vol. 85 No. 4

UPCOMING DISTRIBUTOR SHOW DATES & EVENTS

TEAMWORK

“Snowflakes are one of nature’s most fragile things, but just look at what they can do when they stick together.”

-Vesta Kelly