Issue Date:3/31/2003
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Issue Date:3/31/2003
Hardwood Floors E-News Monday, March 31, 2003 Issue 208 Next issue published April 14, 2003 Deadline for items: April 10, 2003 Send news to [email protected]
Gammapar Acquires PermaGrain Products Acrylic-impregnated wood flooring manufacturer Gammapar (Forest, Va.) will acquire PermaGrain Products Inc. (Newtown Square, Pa.). PermaGrain was one of Gammapar's top competitors until it declared bankruptcy last December. When PermaGrain exited the market, many of its customers were left with unfilled product orders and stalled projects; with this acquisition, Gammapar is in a position to fill the orders and develop the PermaGrain brand, the company says. "Over the years, PermaGrain has developed a solid reputation as being a quality company with a high service standard," says Gammapar's CEO, Barry Brubaker. "We will build on that reputation as we develop and implement some exciting plans for revising and expanding the PermaGrain product line in the coming months." The companies will continue to operate as separate entities, and Gammapar says it intends to retain the sales and production team that was in place when PermaGrain closed its doors.
Manufacturer News For the year 2002, Armstrong Holdings Inc. (Lancaster, Pa.) reported net sales of $3.17 billion, up slightly from the $3.14 billion reported in 2001. Strong sales growth in wood flooring and a slight increase in cabinets were partially offset by lower sales in textiles and sports flooring, resilient flooring and building products, the company says. Wood flooring net sales of $719.3 million in 2002 increased 9.8 percent from $653.3 million in 2001. In the fourth quarter of 2002, the company reported net sales of $752.1 million-about 2 percent higher than fourth quarter sales of $738.3 million in 2001. Strong sales growth in wood flooring was augmented by growth in building products, and earnings increased primarily from higher net sales and improved operating performance in wood flooring, which were partially offset by inefficiencies in cabinets and a $4.4 million decreased U.S. pension credit, the company says. During this quarter, Armstrong recorded a non-cash charge of $2.5 billion to increase the company's estimated asbestos-related liability. This charge was the result of progress in the company's Chapter 11 proceedings, including the filing of a Plan of Reorganization (POR) and proposed disclosure statement with the U.S. Bankruptcy Court.
Lauzon Industries Inc. (Papineauville, Quebec) has finalized the sales transaction confirming it as the new owner of Produits Forestiers Turpin (Thurso, Quebec), Canada's largest hardwood sawmill. "The new subsidiary will operate under Lauzon Forest Resources once the name change has been completed," says David Lauzon, new president and CEO. Although the change in ownership results in a few internal changes in management positions, Lauzon expects to continue with the existing workforce.
Distributor News Sam Elliott of Network Agency Sales Inc. (Dallas), has been awarded the designation Certified Professional Manufacturers' Representative (CPMR) as a result of successfully completing a three-year executive education program. He is one of more than 1,000 professional salespeople to have earned CPMR certification.
Long Floor Supply Inc. (Richmond, Va.) has been named a distributor of Mullican Flooring's unfinished and prefinished products in central and eastern North Carolina. The company has had a relationship with Mullican in Maryland and Virginia for many years. Long Floor Supply's Raleigh branch is located at 2013 Raleigh Blvd., Raleigh, NC 27604 and can be reached by phone at 888/547-9226.
Sealflex Industries (Costa Mesa, Calif.) has appointed Tom Duffy Company (Fairfield, Calif.) distributor of its moisture-retardant flooring adhesives and primers for northern California and northern Nevada. Tom Duffy Company will utilize its 16 warehouse locations and 12 field representatives to provide flooring contractors with Sealflex product information, support and delivery. Sealflex representative Bob Ross will provide technical assistance.
People News Tembec (Huntsville, Ontario) has hired Kevin Leshner as its national sales manager and Kevin Gurican as account manager. Gurican will be based out of Chicago.
Wood Flooring International (Delran, N.J.) has appointed Richard Brown its central regional sales manager. His territory covers the 13 states spanning the Midwest and mid-South regions of the United States. Formerly with PermaGrain Products, Brown has worked in both manufacturing and distribution and has 20 years of experience. He can be reached by e-mail at [email protected] or by phone at his Dallas-based office at 972/562-4680.
Members of the Hardwood Manufacturers Association (Pittsburgh, Pa.) elected new officers and directors at the association's annual National Conference & Expo, March 10-12. Officers for 2003 are: president-Dan Harrison, Cersosimo Lumber Co. Inc. (Brattleboro, Vt.); first vice president-Jeff Hanks, Bill Hanks Lumber Company (Danbury, N.C.); second vice president-Tony Parks, Anderson-Tully Company (Vicksburg, Miss.); and executive vice president-Susan Regan (Pittsburgh, Pa.).
The Greer Company (Memphis, Tenn.) has hired Wade Garrett as an outside sales representative to cover west Tennessee and northwest Arkansas. Also, Randy Murphy has joined the company as a full-time repair technician. Both Garrett and Murphy have experience in the hardwood flooring industry.
By the Numbers In February, housing starts dropped 11 percent to a 1.62 million-unit pace, down from January's seasonally adjusted annual pace of 1.82 million housing starts, according to the National Association of Home Builders (NAHB). This entire slowdown occurred in the single-family sector, where starts declined 13.7 percent to a seasonally adjusted annual rate of 1.3 million units. Regionally, housing starts maintained an even but relatively slow pace of 142,000 units in the Northeast and fell in each of the other three sections of the country in February. Meanwhile, residential building permits moved up a notch to 1.79 million units.
New home sales dropped 8.1 percent in February to a seasonally adjusted annual rate of 854,000, according to the Commerce Department. Weather had an effect on new home sales in the Northeast, which posted a 36.8 percent decline to a seasonally adjusted annual rate of 48,000 new home sales. The Midwest dropped 6.3 percent to a 149,000 annual sales rate. In the South, February sales had a yearly rate of 395,000, down 8.6 percent, while the West held steady at a 262,000 sales pace.
Strip shipments for February 2003 totaled 47,342,000 board feet, holding close to February 2002's shipments of 47,148,000 board feet, according to NOFMA: The Wood Flooring Manufacturers Association. For the first two months of 2003, strip shipments were up 2 percent to 95,616,000 board feet, compared with 93,836,000 board feet during the same period in 2002.
The NAHB Housing Market Index (HMI) fell 10 points from February to 52 in March, the lowest level since November 2001. All three of the HMI's component indexes dropped this month. The index gauging current sales of new single-family homes fell 10 points to 59, while the index for expected sales in the next six months fell 9 points to 57. The index gauging traffic of prospective buyers fell 8 points to 35.
Job Watch Margaritelli USA Inc. (Fenton, Mass.), a manufacturer of engineered wood floors, currently is looking to hire a territory sales representative for Texas. Hard-working, motivated, self-sufficient candidates will be considered for this challenging position. Some experience in the flooring industry is required. Candidates should e-mail résumés to [email protected] or fax 508/238-7441.
Mark Your Calendar RadTech International's "Day of Wood" will be held May 6 from 9 a.m. to 3 p.m. at The Westin in Charlotte, N.C. The event is designed as an introduction to UV finishing applications for wood. For more information, contact Mickey Fortune at 240/497-1243 or e-mail [email protected].
NWFA Member Services In addition to their standard member discount, NWFA members can save $5 a day (up to $25) off their Hertz rental car during the NWFA Convention. This special offer is valid one week before the convention through one week after (offer expires April 17, 2003). To participate, use the codes CDP# 1345884 and PC# 938162. Make your reservations online at www.hertz.com or call 800/654-2240(U.S.) or 800/263-0600(Canada).