July 26,
1999 – Volume v, #31
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
CONFERENCE UPDATE: A VISION FOR THE FUTURE
Hardlines
Marketing Conference ’99 will lay out some of the ways home
improvement retailers will be successful in the next millennium. See
Dan Cotter of TruServ Corp., David Krawzyk of Wickes
Lumber, Larry Moore of Sears
Canada,
Michael Largent of Stambaugh
Hardware,
and John MacDougall of AWARD! September 16, 1999, at the
Sheraton
Parkway Hotel,
just north of Toronto. Register now!!!
My thanks to
this year’s sponsors: The
Watt Group,
the Cologne
International Hardware
Fair/DIY’Tec,
Intactix,
Sterling
Commerce
and Logistics Solutions. &emdash; Michael
COLOGNE INTERNATIONAL HARDWARE FAIR IN Y2K
Don’t miss the largest hardware and home improvement show in the
world – join Hardlines on an excursion to the Cologne International
Hardware Fair/DIY’Tec, March 12-16, 2000. We’re putting together an
outstanding package that will make the trip affordable – and
profitable – for exporters and buyers alike. More details to
come!
This week in Hardlines:
CASTLE
SIGNS AGREEMENT WITH ACE
Castle
Building Centres Group Ltd.
has signed another wholesale hardware supply agreement, this time
with Ace
Hardware Canada.
The deal has been struck to provide Castle with an additional source
for both products and programs, “to compliment our basket of
wholesale hardware source arrangements,” according to a confidential
letter sent to its members by Castle president Pro Wylie.
The deal
exists alongside a similar arrangement Castle has with TruServ
Canada, in addition to being supplied by Sodisco-Howden
Group
and Weber
Supply.
Ace, which has been aggressively wooing buying groups across the
country, already has deals with Tim-BR Marts, Homecare, AWARD and
Sexton Group.
Wylie has
been quoted in the past stating that Castle has a mandate to support
its independent member dealers in each region in which they operate
on a micro-marketing basis. This new supply source fits in with that
mandate by broadening the members’ range of available products and
services.
REVY POSTS STRONG SECOND QUARTER
Reflecting a
strong first quarter results from parent company West Fraser Timber
Co., Revy Home & Garden had sales increase about 5% in the first
quarter, taking off in the second.
“The smaller
contractor stores in B.C. and Alberta were down 6-7% from the same
time last year,” says Revy president Carl Grittner. “But increases in
same-store sales in the retail stores have been huge, especially in
the second quarter, when they were up over 20%.”
Grittner
anticipates overall sales for 1999 will be around $800 million, up
from $700 million in 1998.
West Fraser
earned $37.0 million on sales of $590 million in the quarter ended
June 30, compared with a loss of $14.3 million on sales of $472
million in the corresponding period in 1998. For the first half,
earnings were $51.2 million on sales of $1.034 million, compared with
a loss of $13.2 million on sales of $878 million last year. The
increase in earnings is primarily due to substantially higher lumber
prices during the quarter.
COMPANIES IN THE NEWS
MacMillan
Bloedel reported net earnings of $73 million for the second quarter
of 1999, compared with a net loss of $55 million for the same period
last year. Second quarter net losses reached $9 million from
continuing operations and $46 million from discontinued operations,
which were subsequently disposed of during 1998.
Distribution
contributed $24 million to operating earnings, an increase of $14
million over the second quarter 1998, resulting from strong markets,
cost savings and a more focused business strategy which distinguishes
between commodity trading and warehouse operations. Combined sales
were up 16% from the same period last year,with gross margins up 0.5%
in commodity trading and 2% in warehouse operations.
* * * * * *
* *
Sears
Canada’s
sales for the three months ended July 3, 1999, increased 10.3% to
$2.662 billion, from $2.414 billion in 1998. Net income reached $39.9
million, up $10 million from $29.9 million in 1998. Total revenues
for the quarter increased 10.1% to $1.403 billion, from $1.274
billion in 1998. For the first half of 1999, Sears posted a profit of
$57.1 million, compared with $37.4 million last year.
* * * * * *
* *
Taiga Forest
Products Ltd. had sales for the first quarter ending June 30 of
$228.7 million, compared with $175.2 million for the same period in
the previous year. Earnings grew to $2.6 million for the first
quarter, compared with $811,000 for the same period in 1998. During
the quarter, Taiga completed the construction of its new distribution
centre in Langley, B.C. Its New Westminster operations relocated to
this facility during the first week of July.
* * * * * *
* *
For the
second quarter ended June 30, Le Groupe Forex Inc. had sales of
$123.3 million, compared with $57.7 million for the same quarter of
1998. The company recorded net earnings of $37.96 million, compared
with $5.63 million for the same period in 1998. Earnings before
interest, taxes, depreciation and amortization (EBITDA) totaled
$65.76 million for the second quarter, compared with $15.99 million
in 1998.
During the
first 6 months of 1999, Forex’s sales reached $205.9 million and
generated net earnings of $52.7 million, compared with $88.31 million
and net earnings of $5.99 million.
* * * * * *
* *
International
Forest Products had net earnings before one-time items of $3.5
million in the second quarter ended June 30, compared with a net loss
before one-time items of $15.6 million in the second quarter of 1998.
Interfor recorded a net loss of $44.7 million for the quarter. Total
debt was reduced by $9.6 million in the quarter and at June 30th was
$77.6 million below the level of one year ago.
* * * * * *
* *
Emco Ltd.
had net earnings for the quarter ended June 30, 1999, of $6.1
million, an increase from $5.2 million over the second quarter of
1998. Sales for the quarter were $334.7 million, up 2.1% from $327.9
million for the same period last year. Excluding the Kindred
Industries division, which was sold in the fourth quarter of 1998,
sales of Emco’s continuing businesses were up 4.7% in the quarter
over the same period last year.
Emco’s net
earnings for the first six months of 1999 were $6.6 million, compared
with $4.6 million for the same period last year. Sales for the period
were $582.5 million, compared with $573.2 million, excluding Kindred
Industries.
* * * * * *
* *
Two Olympic
hopefuls who work at Home
Depot Canada
and receive time off for training and competition joined 5,000
athletes from 42 western-hemisphere countries this weekend who are
competing in the 1999 Pan Am Games, in Winnipeg. Sixteen more are
coming from Home Depot in the U.S.
* * * * * *
* *
Westburne
Inc. had sales for the second quarter ended June 30 of $596.1
million, an 8.6% increase from $47.2 million in the previous year.
Pre-tax earnings totaled $29.3 million for the second quarter, up
4.4% from $28.1 million in 1998.
CANADIAN
STOCK WATCH
COMPANY | 52-WEEK | 52-WEEK | CLOSE |
45.00 | 29.00 | 39.80 | |
10.75 | 4.25 | 12.15 | |
10.25 | 6.00 | 10.75 | |
35.10 | 14.00 | 16.85 | |
MacMillan | 20.40 | 11.50 | 26.85 |
32.00 | 15.25 | 30.55 | |
Taiga | 13.30 | 8.65 | 13.00 |
39.50 | 19.05 | 38.00 |
“We seldom
attribute common sense except to those who agree with us.”
&endash; Duc de la Rochefoucauld (1613-1680)
PEOPLE ON
THE MOVE
Garry Shaw has joined Canadian Pro Marketing as a service
representative for the company’s newly formed CanAm Retail Services
Group. (905-877-1628)
Stewart
Mathie has been promoted to vice-president &endash; sales and
marketing, at T.A. Drummond Metal Products Ltd. He was formerly
national sales manager and Lycor marketing manager.
(416-798-2225)
MARKET INDICATORS
Retail trade
in May reached $21.3 billion, up 0.4% from April, says Stats Canada.
Excluding auto sales, which were sluggish, overall retail sales were
up 1.4% in May.
Sales by
wholesalers rose 1.8% in May from April. Lumber and building
materials rose 3.9% to $2.4 billion. Sales here have been generally
increasing since mid-1998, following a series of declines that
started in spring ’97.
OVERHEARD – “We’re focusing on the female consumer, because the
average female spends more than the average male. Therefore, if we
attract more female consumers, we’ll do more business.” – Guy Duvall,
department manager of housewares for Ace Hardware in Oak Brook, Ill.,
quoted in the latest issue of Home Furnishings News.
NOTED –
Buyers, manufacturers’ reps and agents going to the National Hardware
Show next month may want to do some homework on active U.S.
exporters. Check out the World DIY Council’s website:
www.wdiyc.org
. There are about 150 companies listed, I think. It’s well worth a
visit.
FIND
THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES CLASSIFIEDS.
THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE EVERY WEEK.
ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE WEEKS IN THE
E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED AD, JUST CALL
BEVERLY ALLEN AT 416- 489-3396, EXT. 2.
* * * * * *
*
HARDLINES
the electronic newsletter. Michael McLarney, Editor & Publisher.
Published weekly (except monthly in December and August) by
McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5.
416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net
© 1999 by Michael McLarney. Reproduction in whole or in part is
strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or
$27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque
payable to McLarneyCom.
July 26,
1999 – Volume v, #31
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
CONFERENCE UPDATE: A VISION FOR THE FUTURE
Hardlines
Marketing Conference ’99 will lay out some of the ways home
improvement retailers will be successful in the next millennium. See
Dan Cotter of TruServ Corp., David Krawzyk of Wickes
Lumber, Larry Moore of Sears
Canada,
Michael Largent of Stambaugh
Hardware,
and John MacDougall of AWARD! September 16, 1999, at the
Sheraton
Parkway Hotel,
just north of Toronto. Register now!!!
My thanks to
this year’s sponsors: The
Watt Group,
the Cologne
International Hardware
Fair/DIY’Tec,
Intactix,
Sterling
Commerce
and Logistics Solutions. &emdash; Michael
COLOGNE INTERNATIONAL HARDWARE FAIR IN Y2K
Don’t miss the largest hardware and home improvement show in the
world – join Hardlines on an excursion to the Cologne International
Hardware Fair/DIY’Tec, March 12-16, 2000. We’re putting together an
outstanding package that will make the trip affordable – and
profitable – for exporters and buyers alike. More details to
come!
This week in Hardlines:
CASTLE
SIGNS AGREEMENT WITH ACE
Castle
Building Centres Group Ltd.
has signed another wholesale hardware supply agreement, this time
with Ace
Hardware Canada.
The deal has been struck to provide Castle with an additional source
for both products and programs, “to compliment our basket of
wholesale hardware source arrangements,” according to a confidential
letter sent to its members by Castle president Pro Wylie.
The deal
exists alongside a similar arrangement Castle has with TruServ
Canada, in addition to being supplied by Sodisco-Howden
Group
and Weber
Supply.
Ace, which has been aggressively wooing buying groups across the
country, already has deals with Tim-BR Marts, Homecare, AWARD and
Sexton Group.
Wylie has
been quoted in the past stating that Castle has a mandate to support
its independent member dealers in each region in which they operate
on a micro-marketing basis. This new supply source fits in with that
mandate by broadening the members’ range of available products and
services.
REVY POSTS STRONG SECOND QUARTER
Reflecting a
strong first quarter results from parent company West Fraser Timber
Co., Revy Home & Garden had sales increase about 5% in the first
quarter, taking off in the second.
“The smaller
contractor stores in B.C. and Alberta were down 6-7% from the same
time last year,” says Revy president Carl Grittner. “But increases in
same-store sales in the retail stores have been huge, especially in
the second quarter, when they were up over 20%.”
Grittner
anticipates overall sales for 1999 will be around $800 million, up
from $700 million in 1998.
West Fraser
earned $37.0 million on sales of $590 million in the quarter ended
June 30, compared with a loss of $14.3 million on sales of $472
million in the corresponding period in 1998. For the first half,
earnings were $51.2 million on sales of $1.034 million, compared with
a loss of $13.2 million on sales of $878 million last year. The
increase in earnings is primarily due to substantially higher lumber
prices during the quarter.
COMPANIES IN THE NEWS
MacMillan
Bloedel reported net earnings of $73 million for the second quarter
of 1999, compared with a net loss of $55 million for the same period
last year. Second quarter net losses reached $9 million from
continuing operations and $46 million from discontinued operations,
which were subsequently disposed of during 1998.
Distribution
contributed $24 million to operating earnings, an increase of $14
million over the second quarter 1998, resulting from strong markets,
cost savings and a more focused business strategy which distinguishes
between commodity trading and warehouse operations. Combined sales
were up 16% from the same period last year,with gross margins up 0.5%
in commodity trading and 2% in warehouse operations.
* * * * * *
* *
Sears
Canada’s
sales for the three months ended July 3, 1999, increased 10.3% to
$2.662 billion, from $2.414 billion in 1998. Net income reached $39.9
million, up $10 million from $29.9 million in 1998. Total revenues
for the quarter increased 10.1% to $1.403 billion, from $1.274
billion in 1998. For the first half of 1999, Sears posted a profit of
$57.1 million, compared with $37.4 million last year.
* * * * * *
* *
Taiga Forest
Products Ltd. had sales for the first quarter ending June 30 of
$228.7 million, compared with $175.2 million for the same period in
the previous year. Earnings grew to $2.6 million for the first
quarter, compared with $811,000 for the same period in 1998. During
the quarter, Taiga completed the construction of its new distribution
centre in Langley, B.C. Its New Westminster operations relocated to
this facility during the first week of July.
* * * * * *
* *
For the
second quarter ended June 30, Le Groupe Forex Inc. had sales of
$123.3 million, compared with $57.7 million for the same quarter of
1998. The company recorded net earnings of $37.96 million, compared
with $5.63 million for the same period in 1998. Earnings before
interest, taxes, depreciation and amortization (EBITDA) totaled
$65.76 million for the second quarter, compared with $15.99 million
in 1998.
During the
first 6 months of 1999, Forex’s sales reached $205.9 million and
generated net earnings of $52.7 million, compared with $88.31 million
and net earnings of $5.99 million.
* * * * * *
* *
International
Forest Products had net earnings before one-time items of $3.5
million in the second quarter ended June 30, compared with a net loss
before one-time items of $15.6 million in the second quarter of 1998.
Interfor recorded a net loss of $44.7 million for the quarter. Total
debt was reduced by $9.6 million in the quarter and at June 30th was
$77.6 million below the level of one year ago.
* * * * * *
* *
Emco Ltd.
had net earnings for the quarter ended June 30, 1999, of $6.1
million, an increase from $5.2 million over the second quarter of
1998. Sales for the quarter were $334.7 million, up 2.1% from $327.9
million for the same period last year. Excluding the Kindred
Industries division, which was sold in the fourth quarter of 1998,
sales of Emco’s continuing businesses were up 4.7% in the quarter
over the same period last year.
Emco’s net
earnings for the first six months of 1999 were $6.6 million, compared
with $4.6 million for the same period last year. Sales for the period
were $582.5 million, compared with $573.2 million, excluding Kindred
Industries.
* * * * * *
* *
Two Olympic
hopefuls who work at Home
Depot Canada
and receive time off for training and competition joined 5,000
athletes from 42 western-hemisphere countries this weekend who are
competing in the 1999 Pan Am Games, in Winnipeg. Sixteen more are
coming from Home Depot in the U.S.
* * * * * *
* *
Westburne
Inc. had sales for the second quarter ended June 30 of $596.1
million, an 8.6% increase from $47.2 million in the previous year.
Pre-tax earnings totaled $29.3 million for the second quarter, up
4.4% from $28.1 million in 1998.
CANADIAN
STOCK WATCH
COMPANY | 52-WEEK | 52-WEEK | CLOSE |
45.00 | 29.00 | 39.80 | |
10.75 | 4.25 | 12.15 | |
10.25 | 6.00 | 10.75 | |
35.10 | 14.00 | 16.85 | |
MacMillan | 20.40 | 11.50 | 26.85 |
32.00 | 15.25 | 30.55 | |
Taiga | 13.30 | 8.65 | 13.00 |
39.50 | 19.05 | 38.00 |
“We seldom
attribute common sense except to those who agree with us.”
&endash; Duc de la Rochefoucauld (1613-1680)
PEOPLE ON
THE MOVE
Garry Shaw has joined Canadian Pro Marketing as a service
representative for the company’s newly formed CanAm Retail Services
Group. (905-877-1628)
Stewart
Mathie has been promoted to vice-president &endash; sales and
marketing, at T.A. Drummond Metal Products Ltd. He was formerly
national sales manager and Lycor marketing manager.
(416-798-2225)
MARKET INDICATORS
Retail trade
in May reached $21.3 billion, up 0.4% from April, says Stats Canada.
Excluding auto sales, which were sluggish, overall retail sales were
up 1.4% in May.
Sales by
wholesalers rose 1.8% in May from April. Lumber and building
materials rose 3.9% to $2.4 billion. Sales here have been generally
increasing since mid-1998, following a series of declines that
started in spring ’97.
OVERHEARD – “We’re focusing on the female consumer, because the
average female spends more than the average male. Therefore, if we
attract more female consumers, we’ll do more business.” – Guy Duvall,
department manager of housewares for Ace Hardware in Oak Brook, Ill.,
quoted in the latest issue of Home Furnishings News.
NOTED –
Buyers, manufacturers’ reps and agents going to the National Hardware
Show next month may want to do some homework on active U.S.
exporters. Check out the World DIY Council’s website:
www.wdiyc.org
. There are about 150 companies listed, I think. It’s well worth a
visit.
FIND
THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES CLASSIFIEDS.
THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE EVERY WEEK.
ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE WEEKS IN THE
E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED AD, JUST CALL
BEVERLY ALLEN AT 416- 489-3396, EXT. 2.
* * * * * *
*
HARDLINES
the electronic newsletter. Michael McLarney, Editor & Publisher.
Published weekly (except monthly in December and August) by
McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5.
416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net
© 1999 by Michael McLarney. Reproduction in whole or in part is
strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or
$27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque
payable to McLarneyCom.
