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Masco Reports Record Third Quarter Sales and Earnings, Despite UK Plumbing Division Misreporting to Tune of $7m

Masco Corporation reported on 4th November that net sales for the third quarter ended September 30th, 2003, aided by acquisitions, increased 19 percent to a record $2.9bn, compared with $2.4bn for the third quarter of 2002. The Company also detected that an employee at a United Kingdom business unit in the Plumbing Products segment had circumvented internal controls and overstated operating results by approximately $7m.

Net income for the quarter increased to $318.8 million compared with $122.8 million for the 2002 third quarter. Earnings per common share increased to $.65 compared with $.24 per common share for the 2002 third quarter. Income from continuing operations for the quarter was $261.5 million compared with $116.7 million in 2002. Earnings from continuing operations increased to a record $.53 per common share compared with $.22 per common share for the 2002 third quarter. Third quarter 2002 results included a charge of $166 million ($.20 per common share, after tax) related to the Company's subsidiary, Behr Process Corporation, class action litigation.

Sales by segment in the 2003 third quarter versus the 2002 third quarter were:

- Cabinets and Related Products sales were up nine percent;
- Plumbing Products sales were up 28 percent;
- Installation and Other Services sales were up 31 percent;
- Decorative Architectural Products sales were up 17 percent; and
- Other Specialty Products sales were up 13 percent.

In the third quarter of 2003, the Company also detected that an employee at a United Kingdom business unit in the Plumbing Products segment had circumvented internal controls and overstated operating results by approximately $4 million ($.01 per common share, after tax) in 2002 and by approximately $3 million in the first half of 2003. These overstatements were corrected in the third quarter of 2003. The Company made the appropriate personnel change and is continuing to review the operation and its internal controls to determine if any additional changes are required. Upon completion of the review, the Company will determine if any impairment of assets exist, including goodwill (approximately $28 million at September 30th, 2003).

• The Company is implementing changes to its operational and financial structure in Europe which include: reorganising its European business operations into product groups; the addition of group operating and financial personnel; training and evaluation related to internal controls; and the expansion of both external and internal audit involvement.

Masco Chairman and CEO Richard A. Manoogian commented, 'The positive sales and economic trends that we experienced in our businesses in the third quarter of 2003 have continued thus far in the fourth quarter. Assuming that present business conditions continue for the remainder of the current quarter, seasonally one of the year's lowest quarters for Masco, we expect to achieve record sales and earnings in 2003 and we believe that our full-year 2003 earnings from continuing operations should be in the range of $1.68 to $1.70 per common share.' This new guidance represents an increase from the Company's previous guidance of $1.68 to $1.72 per common share, when adjusted to exclude the projected operating results of $.04 per common share related to Baldwin, Weiser and Marvel for the entire year which had been included in the previous guidance, and also excludes any possible fourth quarter unusual items.

Web: http://www.masco.com

Kitchen Showcase & Masterclass Announces Dates for 2004

Kitchen Showcase & Masterclass 2004 will take place from 1-3 July 2004 at the Commonwealth Institute on Kensington High St, and the organisers plan to double the size of the original event to create the most important kitchen exhibition ever held in the UK.

The response of Kitchen Showcase 2003 exhibitors has been overwhelmingly positive, with 10 of the 12 furniture brands reserving room sets at the 2004 exhibition.

The new venue is an inspirational space that will enhance the unique environment of the Kitchen Showcase exhibition, to deliver the perfect setting in which to present the best that our industry can offer.

A maximum 24 kitchens will be on display, alongside a wealth of satellite product stands.

The organisers hope to attract over 1,500 key trade visitors to the first 2 days of Kitchen Showcase, and then to deliver over 1,000 buying consumers on the Saturday open day.

To find out about exhibiting at Kitchen Showcase call Kevin John on 01803 839399 or email mailto:kevin.john@kbdmagazine.com

To register for tickets for Kitchen Showcase or the Masterclass conference call Kevin or email mailto:kitchenshowcase@kbdmgazine.com

H. E. Olby Announces the Opening of its New Bathroom Showroom – Deep Blue

Established builders merchant H. E. Olby has added a new dimension to its premises in Lewisham, South London. Recognised throughout London as the place for sourcing unusual building materials and fittings, the company has shifted its focus more towards the consumer and specifier/interior designer by opening a 2000sq ft bathroom showroom packed with products from leading bathroom suppliers.

The style of the showroom, to be known as Deep Blue, is contemporary and minimalist, appealing to many of today’s discerning consumers who are seeking to create a loft living lifestyle. It has been designed by Lynn Caldwell with a strong emphasis on symmetry and with the needs of the consumer, architect, designer and contractor / developer in mind. Beautiful styling enables the consumer to visualise their dream bathroom whilst the layout displays products clearly. A freestanding Status bath from Adamsez takes centre stage providing an ‘eye catching’ centre-piece, whilst other displays positioned around the showroom command equal attention.

The Deep Blue showroom displays products from a selection of the finest manufacturers of sanitaryware, baths, showers, fixtures and fittings including; Duravit, Keramag, Laufen, Sphinx, Adamsez, Kaldewei, Hansgrohe (Axor/Pharo), Dornbracht, Vola, John Sydney, Eurobath, Kermi, Koralle, Metropolitan, Avante, Keuco and Schneider. There are around 30 displays in total to entice a potential buyer of a bathroom to visit H. E. Olby.

Director Guy Olby says ‘After many years of supplying the trade we have had to recognise that our future growth lies in supplying quality, designer product to the end consumer. Our vast experience in the building trade including the mechanics of installation means that we can provide a truly tailored service to our customers.’ He continues ‘It is a huge investment but we are so excited about the potential of this showroom.’

Visit HE Olby at: 299-313 Lewisham High Street, London, SE13 6NW
Tel: 020 8690 3401

PWS Reaches Sales Milestone

Kitchen components distributor, PWS Distributors, has recently sold its 5th millionth door based on sales since records began in the early 1980's. The door was purchased by Sigma 3 Kitchens Ltd of Llantrisant, Mid Glamorgan - a long established customer of PWS' which has been buying furniture components from the company since 1976.

Recognising this milestone, the door was delivered to Sigma 3 in style. To mark the occasion Brian Lakin, Managing Director of Sigma 3 and his wife Liz, were invited to visit the three main suppliers of doors to PWS in the Treviso area of Northern Italy. The trip was designed to be interesting from both a cultural and business point of view taking in the sights of Venice.

Roy Stephenson, Managing Director at PWS comments: 'We were astonished when we did the numbers to realise we were about to sell our 5th millionth kitchen door. Whilst it tested our IT systems to identify the specific door in question, we were thrilled that this important purchase was made by Sigma 3 who are one of our longest standing customers. We look forward to the next million doors!'

Tel: 01325 505 555
Email: mailto:mail@pws.co.uk
Web: http://www.pws.co.uk

Maytag UK Teams up with Waitrose at The BBC Good Food Show

Maytag UK has teamed up with premier food retailer, Waitrose for the forthcoming BBC Good Food Show at the NEC, Birmingham from the 26th to 30th November 2003. Maytag UK is furnishing the Waitrose demonstration kitchen with the Maytag genuine American fridge freezer, the SOV60CZ, and the latest addition to its appliance portfolio, the Maytag SOV11ORC range cooker. Both are finished in sought-after brushed stainless steel, in the aspirational sovereign styling capturing the essences of today's clean and contemporary stylish lifestylooks.

The Maytag SOV60CZ will be set to work, cooling and preserving the large array of food, whilst the brand new Maytag range cooker with its huge six burner gas hob, two ovens, grill and multi purpose warming compartment will be wowing the avdience, cooking up some culinary delights ready for the passionate consumers who visit the stand.

Holly Burrow, Senior Manager, Marketing explains, 'The BBC Good Food Show has always lived up to its reputation as the biggest and largest food and drink show in the UK. This is a great association for us. Waitrose is a highly respected, quality food retailer and we are proud to match this with our most talented range cooker and sought-after Maytag refrigerators. This is a super show and is the perfect opportunity for food lovers everywhere to truly appreciate good food with Maytag storing and cooking all the ingredients to make for a great show for all visitors.'

The Waitrose stand number is R4589.

For more information on Maytag's appliances call Maytag on 01737 231 000 or visit the website at www.maytag.co.uk

Salisbury Woman wins AEG Ladies Golf Torunament

The AEG sponsored British Ladies Golf Tournament 2003 came to a scorching close this month as Wendy Shaw from Salisbury won the coveted title during the finals in Sun City, South Africa.

50,000 golfers from over 1,000 clubs around England, Scotland and Wales participated in the AEG British Ladies Golf Tournament. Wendy was one of the 20 finalists who won an all-expenses paid trip to South Africa for the Grand Final which was held in Sun City’s Golf Resort.

Playing off a handicap of 38, Wendy has been playing golf for just 10 months. She finished top in the final, winning the AEG Ladies National Golf Tournament engraved putter and £150 worth of Ping merchandise.

Like these winning golfers, AEG has a passion for perfection that is reflected in its uncompromising and innovative approach to the pursuit of excellence in the kitchen. The result is products that combine outstanding performance, versatility and reliability with superb design aesthetics. All AEG products are developed and manufactured with meticulous attention to detail and an eye to minimising the amount of electricity, and where relevant, water used, which not only helps to care for the environment but saves money for users too.

Bristan’s Appeal and Target Cited as ‘Top Kitchen Taps’ by Telegraph Magazine

Two Bristan kitchen taps have been selected from the entire kitchen marketplace to appear in a feature in the Saturday Telegraph Magazine called ‘Take your pick -  top kitchen taps’, reaching over 3.5 million readers.

Bristan’s Appeal and Target taps were chosen as two of the nine products that were selected and photographed by the Telegraph as their view of the best kitchen taps currently available. Telegraph journalist Rachel Jones selected the Target tap as it encompassed the new industrial look but in a more compact form whilst also responding to the sleek contours of the Appeal.

Steve Lee, Managing Director of Bristan says: 'Obviously the work we have recently undertaken on updating and enhancing our kitchen taps offer has paid dividends. It is a great honour for not one, but two, Bristan products to be selected and shown in such a prestigious publication as the Telegraph Magazine.  We’re thrilled!'

Tel: 01827 68525
Email: mailto:enquire@bristan.com
Web: http://www.bristan.com

The Elegant Grace of Showering

'The bathroom as we know it today is about to be turned on its head! The British consumer is no longer prepared to accept the plain, boring and un-inspiring bathrooms of yester year.' says the Bathroom Manufacturers Association.

Fuelled by the growing number of fashion conscious home designer programmes that appear daily on our television sets, today’s busy career consumers are looking for, elegant stylish hi tech bathroom products that complement their home and lifestyle.

Manufacturers have been quick to grasp the challenge and introduced a plethora of bathroom products for all tastes and lifestyles. Busy people today use the showering concept more and more. The range of today’s shower enclosure ranges from elegant frameless to the ultimate wet room that can be achieved by even the smallest of budgets. The showering area now focuses on utilising space, style and functional benefits to the maximum.

Over the years the UK shower enclosure evolved offering a limited choice of basic door to suit a small range of standard tray shapes and sizes; bath screens were designed for straight baths of varying length and height and seen as the ultimate of fashion design! The pace of change has never been so fast. Manufacturers urged on by competition have been made to think beyond the norm, sizes have increased consistently and feature shapes have been fully introduced. Firstly, neo-angle enclosures use corners to create attractive features; but the emergence of glass technology has allowed the shower to take on a more fashionable image. Newly introduced curved glass allows space and light to be used more effectively with an enclosure fitting neatly into a small space but allowing maximum entry and showering areas.

Shower trays have developed at the same pace as the enclosure and complement the style and design which has allowed many new materials to be introduced and no barriers to the tailored look.

A number of fashion changes are clearly evident with enclosures and screens. The 'less is more' minimalist fashion shows its influence where the look of frameless or semi-frameless glass is overtaking demand for traditional enclosures.

Innovation shows no sign of slowing as new products are constantly launched in the UK, this identifies the British market as the most dynamic leaders in Europe.
To aid in the selection process the Bathroom Manufacturers Association has introduced a series of fact sheets, for your free copy please log on to: http://www.bathroom-association.org.

Tel: 01782 747123
Email: mailto:info@bathroom-association.org.uk

DIY SOS? Vantage to the Rescue

The Dudley Vantage concealed cistern was recently used in an episode of the popular BBC TV show, ‘DIY SOS’. When a domestic bathroom was refurbished, the Vantage helped provide a simple to install and aesthetically pleasing solution. The episode was screened on 31st July 2003, with the transformation taking place in just one day. The Vantage, which the company says can be installed in less than half the time of traditional concealed cisterns, really came into its own.

Supplied factory assembled, the cistern removes the need to assemble/fit inlet and flushing valves on site and includes a host of time-saving features. Front and top access panels enable quick and simple installation without cutting unsightly inspection holes in work tops. The cistern is push button operated, fits neatly into bathroom furniture and is suitable for use behind partitions or boxing in. The Vantage is available through most plumbers merchants.

Contact:Andy Burton
Tel: 0121 530 7002
Email: mailto:aburton@thomasdudley.co.uk

German Consumer Watchdog Stiftung Warentest puts Miele at the Top

In the latest tumble dryer test by Stiftung Warentest (StiWa), which will be published in the November issue of its magazine, Miele’s T 273 C condenser dryer and T 263 vented dryer both came in first within their respective category. A total of twelve appliances were tested including nine condenser dryers.

The drying results were viewed in a critical light. According to what is to happen with the textiles when they come out of the dryer, they should be ‘Normal dry’ or ‘Hand iron’. Optimum drying is a matter of course for Miele and the test confirms this. In addition, the Miele condenser dryer’s good electronic residual moisture sensing in the ‘Hand iron’ programme was highlighted.

In addition to good and gentle drying of textiles, it is especially important with condenser dryers that condensation is as effective as possible. This means that the appliance must be as airtight as possible and that no damp steam gets into the room. In this respect, the Miele appliance was a hit. In Miele appliances, the condensed water gathers in an easily removable container. The latest models also have a new integrated condensed water drain hose. This system enables the water to be drained off directly into a sink, into the U-tube below a sink or into a floor drain. Switching between direct drainage and collecting water in the container is possible at any time. The integrated condensed water drain hose is a practical system as it obviates the need for emptying the container.

Nowadays, most Miele tumble dryers have a patented honeycomb drum whose hexagons arch outwards, creating air pockets between the drum and the laundry which act like suction pads to gently transport the laundry. At the same time, warm air surrounds the textiles during drying. This leads to more uniform drying at a reduced operating temperature. The result is even more gentle treatment of laundry during drying and this is confirmed by a certificate from Germany’s independent Hohenstein Institute.

Miele is currently making it easy for customers to decide in favour of tumble drying. In a campaign throughout the whole of Germany (until December 31st, 2003), the manufacturer is offering the possibility for customers to test a tumble dryer for the first 50 days after purchase. Should customers not be convinced of the advantages a tumble dryer has to offer after this time, they can return the appliance and their money will be refunded.

Web: http://www.miele.com

295 Licensing Actions by OFT Between July and September

The OFT carried out 295 licensing actions in the third quarter of 2003, including Kenneth Ellis, Kitchen, bathroom and bedroom suppler. Between 1st July and 30th September nine consumer credit licence applications were refused and five existing licences revoked. There were also 62 warning/advisory letters issued and 179 applications withdrawn following challenge. A further 39 minded to revoke or refuse or refuse to renew notices were issued plus one minded to grant in different terms. 

Under the Consumer Credit Act 1974 businesses that are involved in consumer credit or hire must have a consumer credit licence. The OFT has a duty to protect the interests of consumers by monitoring the fitness of those holding or applying for licences.

Convictions under the Trade Descriptions Act, plus convictions for forgery, fraud and dishonesty, and complaints of violence and abusive behaviour, were some of the fitness issues taken into consideration in the refusal and revocation of licences this quarter.

In considering fitness the OFT can take into account a number of factors including:
* any offence or conviction connected with the business or anyone involved in running the business
* failure to comply with the provisions of the Consumer Credit Act or other consumer protection legislation
* consumer complaints
* evidence of unfair business practices
* evidence of discrimination on grounds of sex, colour, race or ethic/national origin.

As with the last quarter, between July and September the motor trade received the most adverse adjudications with seven businesses having their applications refused or revoked. Other businesses whose licences were refused or revoked include: a credit broker and debt advisor; a mortgage broker; an unsecured loan provider; one finance for holiday homes provider; a computer services provider and a legal services provider and one kitchen, bathroom and bedroom supplier.

So far in 2003, 25 applications have been refused; ten licences revoked and 187 warning letters issued. Challenges to licence applications have also led to 645 applications been withdrawn.

Applications refused between 1st July and 30th September are as follows:

Nathan Michael, Unsecured loans – Middlesex - 464460
Shailesh Kataria, Motor Dealer – Leicestershire – 527399
William Robert Parish, Motor Dealer – Kent – 520233
Willmakers of Distinction, Legal Services – Licolnshire – 512697
Elite Fleet Ltd, Motor Dealer - Staffordshire – 512216
Michael Oldham, Computer Services – Manchester – 528600
Friern Ltd, Motor Dealer – Essex – 529669
The Trade Centre Wales Ltd, Motor Dealer – Glamorgan – 513223
Kenneth Ellis (Refuse to renew), Kitchen, bathroom and bedroom suppler – Cheshire – 419455.

Abacon Shows Extreme Flexibility with Löwer MultiMaster

Multi-sided sanding and finishing for complex mouldings and linear profiles can be achieved in a single pass with the new Löwer MultiMaster from abrasive specialist Abacon. This is a highly flexible throughfeed sanding machine series incorporating 5 models in working width from 150mm to 300mm.

Löwer have collaborated closely with Abacon on the design and specification of the entire range and a central feature is that they are designed to operate the SlipCon abrasive brush heads with individually replaceable brush ‘combs’.

The MultiMaster will accept a workpiece height of up to 100mm and this is instantly adjustable. Also adjustable are all sanding units in terms of height, width and angle. This allows the optimum application of the brush-backed abrasive strips to the profiled faces of the workpiece for a perfect finish.

The workpiece is transported through the dust-free operating hood of the machine on a fixed height conveyor (for integration into lines) which can be run at 6, 11 or 16m/min with infinitely variable speed as an option.

The standard 32mm diameter spindles support 300mm top and bottom diameter brushes and 250mm diameter side brushes. (The side units can be adjusted through 45 degrees). As an option, all spindles can be fitted with a dipping device.

The five models are as follows: LZ3 has one top and two side brushes; LZ3D has two top (counter rotating) and two opposite side brushes; LZ3x2 has two top (counter rotating) brushes and two pairs (counter rotating) opposite side brushes; LZ4 has opposite top and bottom brushes and opposite side brushes; LZ4x2 two opposite pairs (counter rotating) top and bottom brushes and two opposite pairs (counter rotating) side brushes.

The machine’s drives, bed engineering, extraction, control and safety features are of the highest quality and conform to all standards.

Further options include a blow cleaning device and an anti-static system. Spindle speeds – which are standard at 750 rpm – can be varied from between 200 – 1000 rpm. Height adjustment can also be motorised with an electronic digital display.

Abacon have installed a number of Löwer machines of various types and configurations around the UK and Ireland. The company’s new brochure on Brush Sanding and Finishing Machines is available on request.

Tel: 0114 256 2266
Email: mailto:sales@abacon.co.uk

Autumn House Cleaning: Essential for a Wholesome Environment

While you and your family enjoyed Mother Nature at her best this past summer, a lot of the outside was being tracked inside on shoes and pet paws or wafted through the window screen. Pesticides, road dust with motor oil, ragweed and grass pollens may have entered the home. Microscopic allergens known as dust mites were burrowing into bedding, upholstery and carpeting. And normal house dust was accumulating particles of bacteria, fungi and airborne mold spores.

Before you move indoors and close up the house for winter, it's important to adopt a good cleaning regimen to reduce allergens in your home. With planning and prioritising, autumn cleaning can be manageable.

According to the Environmental Protection Agency, regular vacuuming has been shown to reduce dust significantly. Look for a quality vacuum cleaner such as the Hoover® Self Propelled WindTunnel™ upright vacuum cleaner, recently rated number one by a leading consumer magazine. This cleaner excels at getting embedded dirt that can harbour allergens, and some models have a red light and a green light to tell the user when the carpet needs more vacuuming and when it is clean. WindTunnel technology keeps the dirt away from the machine's spinning agitator so that it doesn't get scattered back onto the carpet.

The Self Propelled WindTunnel upright comes with allergen filtration that captures 100 percent of dust mites and their eggs and 99.9 percent of ragweed and common grass pollens.

Be sure to vacuum all household horizontal surfaces, using your vacuum cleaner attachments as multi-task tools. To dust furniture, use the dusting brush - instead of a cloth - that sucks up dust, rather than spreading it into the air. Use dust wands and extension hoses to get at cobwebs and tiny corners as well as big areas, like sofas and dressers. Clean along skirting boards - dust mites thrive in moisture that often builds along skirting boards. The Hoover Self-Propelled WindTunnel upright comes with a powered hand tool for vacuuming carpeted stairs, upholstery or any small area.

The cleaning experts at Hoover offer these additional hints:

• First, remove clutter. That quickly makes a room look better, gets rid of piles that accumulate dust and dirt - and it's easier to clean when you're not tripping over piles of toys or magazines.
• Have appropriate cleaning supplies and tools ready. A large bucket or cleaning tray makes it easy to take them from room to room.
• Clean the dirtiest areas first and work from the top down. That way, dust from dressers or window treatments won't end up on freshly vacuumed carpet.
• If you can do it all at once, great - or break the work down into reasonable blocks of time. Concentrate on one room at a time. Transforming a dirt-intensive room into a sparkling one gives a feeling of accomplishment and motivation. Or tackle one big job first, like washing windows to see results.
• Pay special attention to the bedroom, since most people spend one-third of their time sleeping. Bedding can be a haven for accumulating dust mites. Wash bed linens in hot water (over 130 degrees F), hot enough to kill mites. Use plastic covers on pillows, mattresses and comforters to keep dust mites out.
• Don't get bogged down on reorganising cupboards, switching from summer to autumn clothes, or other lengthy tasks. Set aside a special time for big reorganisation jobs.
• Focus special attention on areas not cleaned, such as valances and blinds, and heavy traffic areas such as entryways.
• Deep-clean carpets with a hot water extractor every three months, in addition to regular vacuuming. This helps remove oily dirt that can cling to carpet fibers. Deep cleaning also can be done on fabric furniture to obtain brighter colors, a fresh look and to help remove indoor allergens.
• Assign one room to each member of the family to make the job go faster. Even small children can help out by putting toys away or clearing clutter.
• Buy a good quality doormat and wipe your feet so that outdoor allergens get left outside the door.
• When autumn cleaning is done, take satisfaction in having created a more attractive home and a wholesome environment.

Hoover offers a full line of products, including uprights, canisters, extractors, stick cleaners, hard- floor cleaners, hand-held cleaners, central vacuum systems and commercial products. Hoover is based in North Canton, Ohio, where it was established in 1908.

Web: http://www.hoover.com

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