Issue Date:3/15/2004
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Issue Date:3/15/2004
Hardwood Floors E-News Monday, March 15, 2004 Issue 233 Next issue published March 29, 2004 Deadline for items: March 24, 2004 Send news to [email protected]
Armstrong Reports 2003 Year-End Numbers Armstrong Holdings Inc. (Lancaster, Pa.) reported net sales of $3,259.0 million for the year ending Dec. 31, 2003, an increase of 2.7 percent from the $3,172.3 million reported for 2002. The company experienced an operating loss of $10.4 million, compared with a loss of $2,337.3 million for 2002. During the fourth quarter of 2002, Armstrong recorded a non-cash charge of $2.5 billion to increase the company's estimated asbestos-related liability. During 2003, Armstrong recorded non-cash charges related to asbestos litigation of $81 million. Also during 2003, Armstrong implemented several manufacturing and organizational cost changes to improve its cost structure and enhance its competitive position, the company says, adding that the costs for these initiatives incurred in 2003 totaled approximately $55 million, of which approximately $33 million was for accelerated depreciation. The remaining amount was primarily for severances and related inventory obsolescence. For the fourth quarter of 2003, Armstrong reported net sales of $805.8 million, up 7.1 percent from fourth-quarter net sales of $752.1 million in 2002. An operating loss of $6.1 million was recorded for the fourth quarter of 2003, compared with an operating loss of $2,485.8 million during the same period in 2002.
Wood flooring net sales of $738.6 million in 2003 increased 2.7 percent from $719.3 million in the prior year. This increase was driven primarily by improved pricing and increased volume in certain products. An operating loss of $4.0 million was recorded in 2003, compared with an operating income of $53.0 million in 2002. Approximately $40 million of the $57 million decline in operating income was due to increases in lumber costs, the company says, noting that $28.2 million of expenses associated with cost reduction initiatives also contributed to the decline. Partly offsetting these expenses were gains from the selling price increases and reduced expenditures in SG&A.
NWFA Certifies Wood Flooring Inspectors The NWFA has awarded Certified Wood Flooring Inspector status to 16 wood flooring professionals through its Inspector Certification Program. Thirty-three additional individuals have been awarded provisional certification status in accordance with the program. A total of 94 individuals have participated in the program to date. Those individuals receiving full Certified Wood Flooring Inspector status include: John Dailey, Midwest Restoration & Inspection Service (Wheaton, Ill.); Fred Brotherly, Galleher Hardwood Co. (Santa Fe Springs, Calif.); Robert Goldstein, Klein Inc. (Dania Beach, Fla.); Joe Audino, Rode Bros. Floors (Henderson, Nev.); Don Conner, Mullican Flooring (Johnson City, Tenn.); Claudia Lezell, Inspections Too Inc. (Houston, Texas); Neil Moss and Evan Lauridsen, Armstrong Wood Products (Lancaster, Pa.); Steven Tolli, S/L Inspection Service (Harriman, N.Y.); Greg Martin, Finmac Lumber Ltd. (Winnipeg, Manitoba); Steve Agius, Creative Tile & Hardwood Floors (Naples, Fla.); David Goldsboro, DG Flooring Specialists (Chatsworth, Calif.); Kerry Authier, Floor Style Products (Sparks, Nev.); Richard Conway, All Wood Floorcraft (Morganton, N.C.); Steve Marley, Cal Coast Hardwood Flooring (Simi Valley, Calif.); and Mark Scheller, Scheller Hardwood Floors Inc. (Lemoyne, Pa.). The NWFA will host its next Inspection Certification Test April 14 during its 2004 convention in Charlotte, N.C. The test will be held in the South Carolina Room of the Hilton Charlotte & Towers Hotel at 222 E. Third St. Testing begins at 7:30 a.m. and ends at 6 p.m. The cost is $250 for NWFA members and $350 for non-members. To sign up for the test or for more information, contact the NWFA at 800/422-4556 (U.S.), 800/848-8824 (Canada) or 636/519-9663 (local and international) or visit www.nwfa.org .
NWFA Installation, Sand & Finish School Visits Denver The NWFA held its latest Installation, Sand & Finish School in Denver March 2-5. NWFA Technical Director Steve Seabaugh , assisted by NWFA's Rusty Swindoll , instructed 33 students in basic installation, sanding and finishing skills. Volunteer instructors for the event included Dennis Plaut, 3M; Rhonda McCulley and Leonard Chapman, Basic Coatings; Dee Lenston and Mike Rocher, BonaKemi USA Inc.; Don Smithson, Clarke American Sanders; Scott Avery, Cornice Flooring; Terry Green, Dura Seal; Reto Gamweger, Eiger International Inc.; Leonard A. Hall, Endurance Floor Co. Inc.; Jay Wyckoff, General Distributors Inc.; Dean Hultman, Hultman Flooring; Rick Zimmerman, Industrial Resources Inc.; Janet M. Sullivan, Lenmar Inc.; Don Conner, Mullican Flooring; Mike DeFriese, Norton Abrasives; Russ Watts, Palo Duro Hardwoods Inc.; Gary Schneekloth, Rock Solid Hardwoods; Alan Blake, Stauf-USA Adhesive LLC ; and Mary Thur, Tembec Inc . The lead distributor for the event was Palo Duro Hardwoods Inc. (Denver).
Manufacturer News Virginia Abrasives Corp. (Petersburg, Va.) has announced its partnership with Richmond International Raceway (RIR) . The partnership will allow Virginia Abrasives to market its association with RIR and its events, such as the NASCAR Nextel and Busch Cup Series event weekends, including the Chevy Rock & Roll 400. The partnership also will allow the company to promote its products in a new way, says A.J. Winstead , Virginia Abrasives' national sales manager, adding that details on the company's new contractor program will be available soon.
Anderson Hardwood Floors' (Clinton, S.C.) Anderson, Appalachian and Virginia Vintage brands have been added to the vendor lists of five major buying groups- Mohawk Alliance, Abbey Carpet Dealers, Floors to Go, The Floor Club stores and ProSource , the company says. Upscale products in each of these brands will be offered in displays carrying the Anderson name. Anderson, Appalachian and Virginia Vintage will be available through the Mohawk Alliance in Mohawk, FloorScapes, Color Centers, Signature Dealers and Floorz outlets. Abbey Carpet Dealers, Floors to Go and The Floor Club will carry 75 Anderson SKUs in two custom displays. All of the ProSource showrooms will carry Appalachian and Virginia Vintage products and will have the option of carrying the Anderson line as well.
In other company news, four of Anderson's brochures won a 2004 ADDY Award from the Greenville, S.C., Ad Club. Brochures for Appalachian Black Rock Plus, Time Worn and Dellamano, along with The Anderson Brochure won in the Collateral Brochure Campaign category. Mark Wilson, creative director of WC&T in Asheville, N.C., assisted by Art Director Roger Gonce and Copywriter Stephen Childress, designed the award-winning brochures.
The Mapei Group (Deerfield Beach, Fla.) provided key sponsorship of the World Cup of Skiing Super Finals, which took place in Sestriere, Italy, March 10-14. All of the race identification material displayed the Mapei brand, and hot air balloons, banners, signage and the Mapei motor home heightened the company's visibility. Mapei customers had access to a hospitality area, where they enjoyed VIP seating and had an opportunity to assist with the races. A gala dinner was held on March 12. The company also ran more than 60 commercials during the event and displayed pop-up banners linking to the World Cup 2004 Web site.
Jungle Jim Tools (Santa Cruz, Calif.), manufacturer of the Cobra Scraper, has a new telephone/fax number at 831/459-0780. The voice mail number for the company is 831/685-4028. The Web site is www.junglejimtools.com . The company also is seeking new distributors.
Distributor News VerMeister USA has teamed up with HFD Goodfellow Redmond (Redmond, Wash.). As of its opening on March 1, HFD Goodfellow Redmond is the exclusive Greater Seattle area distributor of VerMeister finishes. This new location is led by the sales team of Bill Maloney and Dan Engelstad , who have a combined 50 years of experience. HFD Goodfellow Redmond will hold a grand opening on March 26, which will include product giveaways, vendor demonstrations, a staff meet-and-greet and more. For more information, call 425/885-1551.
Contractor News Longtime business partners and brothers-in-law Gary L. Newcom and John T. Bast Jr. have completed the buy-out/retirement deal at Bast Hardwood Floors & Custom Wood Staircases (Tampa, Fla.). Bast and his wife, Diane, sold their interest in the business to co-founder Newcom, and the business remains family-owned and operated, with Newcom, his son-in-law, Matthew T. Johnson , and his son, Chris Newcom , remaining in place as the owner and principals.
People News 3M (St. Paul, Minn.) has appointed Mike O'Hara marketing supervisor for its sanding products. O'Hara most recently served as national account supervisor and has been in sales with 3M for the past seven years.
The Wood Guys LLC (Lawrence, Mass.) has named Helen Talbot , formerly of Patriot Hardwood Floors and Supply, director of customer service. She has 12 years of wood flooring experience and can be reached at 866/800-9663.
In Memoriam C. Daniel "Danny" Kimbrel , president of Thompson Oak Flooring Co. (Augusta, Georgia), passed away March 9 at the age of 54. Kimbrel was past president of NOFMA: The Wood Flooring Manufacturers Association, of the Augusta Golf Association and of Sacred Heart Cultural Center, as well as a past chairman of the board of First Union National Bank of Augusta. Kimbrel is survived by his wife, Mary Lane Preston Kimbrel, and two sons, Preston Monroe Kimbrel and Charles Daniel Kimbrel Jr., as well as a sister and two nieces. Those wishing to send memorial gifts can send them to the Community Foundation of the CSRA, P.O. Box 31358, Augusta, GA 30903, or to the University Health Care Foundation, Jernigan Cancer Center, 2100 Central Ave., Suite D-1, Augusta, GA 30904.
On the Web Acousti-Tech (St-Lambert-de-Lauzon, Quebec) has a revised Web site at www.acousti-tech.com .
Ochoco International LLC (Portland, Ore., and Bellevue, Wash.) has an improved Web site at www.ochoco-international.com . Visitors can check inventory and access technical data on tropical species, among other functions.
Job Watch Mercier Wood Flooring Inc. (Montmagny, Quebec) is searching for a Midwest regional sales representative. Responsibilities of the position include working alongside the territory managers of the company's current distributor-partners and assisting in the continued training of its retail dealers. The ideal candidate will have a minimum of five years' experience in sales with dealer/distributor markets, excellent written and verbal communication skills and hardwood flooring or related industry experience. Qualified candidates should submit a résumé to Mercier Wood Flooring, Attn: Mike McReavy , by fax at 905/271-0723 or by e-mail at [email protected] .
Mark Your Calendar The National Association of Home Builders (NAHB) will hold its Semiannual Construction Forecast Conference April 21 at the National Housing Center in Washington, D.C. A series of panel discussions on the economic outlook of housing for 2004 and beyond, including regional forecasts, mortgage rate analysis and how consolidation in the home-building industry affects consumers. Other topics will include long-term housing trends, housing prices, mortgage volumes and consumer preferences. For more information, visit www.nahb.org .
The Home Improvement Research Institute (HIRI) will hold its "Building Market Knowledge" Conference April 27 in Washington, D.C. The event will include sessions on the economic outlook for home improvement and what it means to the home improvement products industry; the merging marketplace; category management; how building product manufacturers can effectively serve Hispanic contractors; and more. For more information, call 813/627-6759 or visit www.hiri.org .
The International Timber Trade Show will be held June 2-4 at the Beaujoire Exhibition Center in Nantes, France. The event is a showcase for all facets of the timber trade and attracts major manufacturers in the business of primary and secondary timber processing, as well as those involved in timber trading. For more information, contact the French Technology Press Office at 312/327-5260 or visit www.timbershow.com .
Domotex Hannover 2005 will be held Jan. 15-18, 2005, in Hannover, Germany. The 2004 event saw a 15 percent increase in attendance over 2003, with 57 percent of all visitors coming from abroad. The show features wood and parquet flooring, contract floorcovering businesses; resilient flooring; laminated flooring; natural stone; ceramic tile; installation, cleaning and application technologies; and more. For more information, visit www.domotex.de .
NWFA Member Services NWFA members can save $5 a day and up to $25 off their Charlotte, N.C., NWFA convention car rental. Hertz Corporation offers members a special convention price, plus the standard member discount. This special offer is valid April 5-25. Just mention your CDP number and the special price PC number when making an advanced registration, and present your Member Savings Card or your membership card for identification at the time of rental. For your special numbers and the Member Savings Card, call the NWFA at 800/422-4556 (U.S.), 800/848-8824 (Canada) or 636/519-9663 (local and international). Make your reservation online at www.hertz.com or call 800/654-2240.