American Standard Files Record Q1 Sales, but Declining Profits
American
Standard has announced first-quarter sales of a record $2.552bn, up
9% from the prior year, however, net income for the quarter was $84.1m,
down 32.7% from $124.9m in first quarter 2005. Fred Poses, chairman
and CEO (pictured), said: 'Bath and Kitchen performed as we expected
- about the same as fourth quarter - as we took actions to rebuild its
profitability and continue to build its global competitiveness.'
Adjusted
net income was down 8.8%, including stock option expensing and excluding
operational consolidation expenses and a benefit from 2005 tax items
of $36.4m. GAAP net income per diluted share was down 29.8%. Adjusted
net income per diluted share was down 4.4%, including stock option expensing
and excluding operational consolidation expenses and tax items.
Frad adds: 'Air Conditioning Systems and Services achieved excellent
results, with strength in both the commercial and residential parts
of the business, and Vehicle Control Systems once again outperformed
its markets. During the quarter, each business increased investments
for long-term growth, and we supported new product launches with added
marketing spending. Our overall results reflected the fundamental strength
of our air conditioning business, enabling us to overcome all but 2
cents of the 14-cent net income per share reduction in Bath and Kitchen
performance from first quarter last year.'
First-quarter segment income was $198.1m, down 2% compared with $202.1m
during first quarter last year. Segment income as a percent of sales
was 7.8%, down 0.8% points, and 8.1% excluding foreign exchange effects
and operational consolidation expenses.
In addition, the company bought back 4.4 million shares of stock worth
$172m during the quarter.
Projections
'For the second quarter, we expect continued strength in Air Conditioning
Systems and Services, solid results in Vehicle Control Systems and improving
performance in Bath and Kitchen,' said Fred. 'We estimate sales to be
up 9-10 percent, and net income per diluted share in the range of 87-93
cents on a GAAP basis and 90-96 cents excluding operational consolidation
expenses and benefits from one-time gains.'
For the second quarter 2005, GAAP net income per diluted share was 95
cents, which was at the higher end of expectations. The estimated adjusted
second-quarter 2006 net income per diluted share represents an increase
of 3-10 percent.
'For the year, we're raising our guidance of 6-7 percent sales growth
to 7-8 percent, and we're increasing the low end of our net income per
diluted share estimate from $2.65-$2.80 to $2.70-$2.80,' said Fred.
'In addition, we're on track to achieve our 2006 cash flow targets of
$835-$860m in net cash provided by operating activities and $575-$600m
in free cash flow. We will continue to return cash to shareowners through
share repurchases and our quarterly dividend, which we raised 20 percent
earlier this year,' he adds.
BATH AND KITCHEN sales were $608.7 million, up 0.8 percent (up 4.8 percent
excluding foreign exchange effects) with growth around the world. GAAP
segment income represented a loss of $0.5 million, down from a profit
of $44.8 million in first quarter 2005. Adjusted segment income was
$7.3 million excluding operational consolidation expenses and foreign
exchange effects. The decline in segment income was caused by higher
commodity costs, costs to reduce inventory and improve manufacturing
efficiency, unfavorable foreign exchange transaction effects, as well
as investments related to product launches. These costs exceeded benefits
from improved volume, pricing and previous operational consolidations.
In the U.S., initial demand has been good for the recently launched
Cadet 3 toilet, which improves the performance of the long-time popular
line. In Europe, Bath and Kitchen introduced new luxury Jado fittings
lines and promoted various ceramics suites. In Asia, Bath and Kitchen
launched six above-counter vessels aimed at luxury hotels and residences
as well as five new fittings lines, including the oval-shaped Ova faucet
for the luxury segment. The 2006 Bathroom Collections show held in Shanghai
showcased these and other leading design products to more than 300 key
distributors, dealers, designers and retailers from 13 countries. New
commercial sales included ones for Canadian Tire's 458 locations; Condado
Plaza Hotel and Casino (San Juan, Puerto Rico); El Niplito del Sureste
(Merida, Mexico); Harrah's Hotel and Casino (Atlantic City, N.J.); and
New York Marriott at the Brooklyn Bridge (Brooklyn, N.Y.).
'We're working on the right things to improve Bath and Kitchen performance,'
said Poses. 'In the quarter, we increased availability of higher-value
products in Europe, reduced inventory levels and the number of product
models, made progress on product launches and started implementation
of price increases. Most of these actions added costs this quarter,
but will help us deliver improving margins beginning in second quarter.
'In addition, we have announced plans to simplify our new product development
and manufacturing as well as administrative support. These plans will
result in the elimination of 320-380 jobs in Europe,' said Poses.
'They will cost about $18-$21 million ($13-$15 million after taxes),
with about $10-$13 million ($7-$9 million after taxes) coming in the
second quarter and the rest by year end. We expect annual savings of
$13-$15 million ($9-$10 million after taxes) with some benefits in the
second half of 2006 and full annualized benefits in 2007. We very carefully
consider any plans that affect people's jobs and believe these and any
possible future actions are essential to rebuild Bath and Kitchen's
profitability and continue to build its global competitiveness.'
Jacuzzi 2006 Q2 Profits Slashed by 45%
Jacuzzi
Brands, Inc. net sales and operating income for the second quarter 2006
were $289.2m and $21.6m, respectively, compared to $301.0m and $22.5m,
respectively, for the second quarter of fiscal 2005. Net earnings for
the second quarter of fiscal 2006 were $4.1m, compared to $7.4m, in
the second quarter of fiscal 2005.
Results for the second quarter of fiscal 2005 included Rexair net sales
and operating income of $27.6 million and $6.0 million, respectively.
In the fiscal 2006 second quarter Rexair contributed $1.1 million in
equity earnings as a result of Jacuzzi Brands' approximate 30% continuing
ownership interest following the sale of Rexair in June 2005.
Net proceeds of approximately $150 million from this sale contributed
to the decline in net interest expense in the fiscal 2006 second quarter
compared to the second quarter of the prior year. Also, included in
the current year's second quarter results were losses from discontinued
operations totaling $3.0 million, or $0.04 per share, versus losses
from discontinued operations totalling $1.2 million, or $0.01 per share,
in last year's second quarter.
Plumbing Products net sales increased 23.0% over the second quarter
of fiscal 2005, offsetting a 1.6% decline in Bath Products net
sales. Both segments generated a significant increase in operating income
in the second quarter of fiscal 2006 compared to the prior year quarterly
period. Consolidated net sales and operating income for the quarter
were impacted by unfavourable currency exchange rate fluctuations of
$5.8 million and $0.1 million, respectively.
The losses from discontinued operations include $1.6 million ($0.02
per share) related to the Company's investment in Spear & Jackson
(the anticipated sale of which was announced on March 24th, 2006), and
$1.4 million ($0.02 per share) related to adjustments to reserves associated
with other operations that were previously sold. The second quarter
of 2005 includes a loss from discontinued operations of $1.2 million
which is largely related to the results of the Eljer operations
prior to their disposal in June 2005.
Sales in the Bath Products segment decreased 1.6% in the second quarter
of fiscal 2006 from the same period in fiscal 2005, due primarily to
$5.8 million in unfavorable currency exchange rate fluctuations. Spa
sales increased as a result of improved pricing and mix despite continued
softness in the U.S. spa market. Price increases throughout the segment
helped mitigate higher raw material costs, primarily oil-based commodities,
and offset the continued volume decline in the U.K. market that began
in January 2005. Although the Company does not anticipate any significant
recovery in the U.K. market during fiscal 2006, it expects to continue
to generate sales growth in selected European markets.
Operating income increased 29.0% to $8.0 million in the second quarter
of fiscal 2006 from $6.2 million in the second quarter of fiscal 2005
due to continued cost reductions in the U.S. bath and spa businesses.
The segment also benefited from favorable mix and higher product prices,
which helped offset raw material increases and lower volume.
Operating income in the Bath Products segment included restructuring
and other charges of $1.6 million in the second quarter of fiscal 2006
and $0.7 million in the second quarter of fiscal 2005.
Restructuring and other charges for the second quarter of 2006 largely
consisted of $1.3 million related to the previously announced consolidation
of the Bradford, U.K. plant. The Bradford charges included $0.6 million
related to inventory write-downs and accelerated depreciation, recorded
in cost of goods sold, and $0.7 million of severance and other cash
expenses recorded as restructuring expenses. The remaining restructuring
charges primarily related to other staffing and overhead reductions
in the U.K. operations. The Company expects to record $1.1 million in
accelerated depreciation in cost of goods sold and $1.1 million in cash
restructuring charges over the remainder of fiscal 2006 related to the
Bradford consolidation and other identified overhead reductions at its
U.K. operations.
The Company is continuing to review a number of further U.K. cost reduction
initiatives. Fiscal 2005 restructuring charges were mainly associated
with the consolidation of administrative functions into the Dallas,
TX shared services centre.
Results in the second quarter of fiscal 2005 included a reduction in
warranty costs of $2.2 million resulting from the favourable settlement
of a dispute with the previous owners of the Sundance Spas business.
The second quarter of 2005 also included severance costs of $0.7 million,
as well as costs related to the opening of the Zhuhai, China Engineering
and Sourcing Center of $0.5 million. Pro forma operating income (excluding
restructuring and other charges mentioned above) increased to $9.6 million
in the second quarter of fiscal 2006 from $5.9 million in the second
quarter of fiscal 2005 (see table below for detailed reconciliation.)
Net
sales in the Plumbing Products segment increased 23.0% to $101.0 million
in the second quarter of fiscal 2006 compared to the same period last
year. The higher sales were driven by sales of new products, market
penetration and industry growth. In addition, price increases initiated
in prior periods helped to offset the continued rise of raw material
costs, primarily increases in metal and oil-based commodities. Net sales
increased in the PEX product line largely due to the continued conversion
from copper to PEX. Net sales at Wilkins and Commercial Brass increased
primarily as a result of increased market penetration, new product innovation
and reputation for outstanding customer service.
Operating income for the second quarter of fiscal 2006 increased by
30.7% to $20.0 million from $15.3 million in the same period last year.
The increase was principally due to strong sales volume.
Outlook
David H. Clarke, Chairman and Chief Executive Officer of Jacuzzi Brands,
stated ‘We are very pleased with our second quarter results which
saw significant improvement in both our Bath and Plumbing divisions.
Despite slightly lower sales, our Bath division improved its profitability
through cost saving initiatives and new product introductions. Zurn
Plumbing Products continues its outstanding record of increased sales
and profits. We have entered our seasonally high period with optimism
that we will continue to see positive results for the balance of fiscal
2006.’
The Company expects to report net earnings from continuing operations
for fiscal 2006 of $0.50 to $0.52 per share. This guidance includes
restructuring and other charges ($0.04 per share) and the foreign currency
losses related to a prior year transaction ($0.01 per share) as well
as gains on the recognition of deferred profit on the sale of real estate
($0.07 per share), the settlement of property taxes ($0.02 per share)
and a favourable ruling on the remediation of a contaminated site ($0.02
per share). Excluding these amounts, net earnings from continuing operations
for fiscal 2006 is expected to be in the range of $0.44 to $0.46 per
share which is consistent with the Company's prior guidance. This guidance
incorporates the $19.0 million of reduction in operating earnings from
Rexair due to the majority sale of that business in 2005. This guidance
does not include any other expenses that might be incurred in connection
with additional measures that might be undertaken to restructure operations
and further reduce the Company's cost structure. The guidance also assumes
product prices will be able to be adjusted to offset any raw material
price increases.
Whirlpool
Integrates Maytag, 4,500 US Jobs Lost
Whirlpool
Corporation announced on 10th May a series of changes within its North
American organisation relating to the integration of Maytag operations.
Locations affected by the changes include three manufacturing sites,
the former Maytag corporate headquarters and a research and development
centre in Newton, Iowa, and administrative offices in Illinois, Canada
and Mexico.
Approximately 4,500 positions will be eliminated as a result of the
changes. Moving forward, about 1,500 new positions will also be
created at other Whirlpool locations, resulting in a net total elimination
of 3,000 positions when all changes have been completed. Details
on the number and location of new positions created at other Whirlpool
locations will be announced in the near future.
'We are taking these actions to rapidly restore the competitiveness
of the Maytag brands,' said Jeff M. Fettig, Whirlpool chairman and chief
executive officer. 'This is an important step in our integration process
that will allow us to drive continuing performance improvements and
will better align our brands, products and operations with the markets
we serve domestically and globally.'
Laundry Manufacturing Consolidation
The announcement includes plans to consolidate laundry washer and dryer
production from Maytag manufacturing sites in Newton, Iowa; Herrin,
Illinois and Searcy, Arkansas with Whirlpool laundry factories in Clyde
and Marion, Ohio. The series of moves will build upon the efficiency
of Whirlpool’s manufacturing capabilities and enhance the company’s
ability to compete within the highly competitive global home appliance
industry. The changes follow an extensive review of Maytag operations
by Whirlpool, and the company’s commitment to quickly communicate
any operational decisions to clarify employee status moving forward.
'Our manufacturing sites in Clyde and Marion are two of the most efficient
facilities in the world, with capacity to grow,' said David L. Swift,
president, Whirlpool North America. 'This was a difficult, but necessary
decision that will further improve the cost efficiency of our laundry
operations, providing consumers with industry-leading innovation and
competitively produced washers and dryers from U.S.-based manufacturing
locations.'
The timetables for the affected manufacturing operations include
an orderly closure process, with complete closure targeted on the dates
included below:
- The factory in Herrin, Illinois, which manufactures washers
and dryers and employs about 1,000, will continue production until the
end of 2006.
- The factory in Searcy, Arkansas, which manufactures dryers and
employs about 700, will continue production until the end of 2006.
- The factory in Newton, Iowa, which manufactures washers and
dryers and employs about 1,000, will continue production into 2007.
The company currently plans no further manufacturing facility closures
related to the Maytag integration process, though it will continue to
aggressively pursue ongoing productivity improvements across its global
operating platform. At the same time, Whirlpool will continue to
evaluate strategic options for, including the potential sale of, the
Hoover floor-care and the Dixie-Narco, Amana commercial microwave and
Jade commercial appliance businesses.
Administrative Consolidation
Maytag administrative offices will be consolidated in the United States
– from Newton, Iowa to Benton Harbor, Michigan and other Whirlpool
locations; in Canada – from Burlington to Mississauga; and in Monterrey,
Mexico where both companies have offices. The Newton-based research
and development center, and the administrative office of Maytag International,
based in Schaumburg, Illinois, also will be closed.
Approximately 1,800 salaried positions, included in the 4,500 affected
positions, will be eliminated as a result of these changes. Several
hundred salaried employees from the affected administrative offices
are expected to be offered jobs in other Whirlpool locations.
Whirlpool’s review of Maytag operations will continue, and further
decisions related to office facilities are expected in the future.
Transition Support
The company will support employees affected by the changes with a comprehensive
assistance package during the transition period, including severance
pay, health benefits continuation, job search assistance, and other
benefits. Whirlpool plans to open negotiations with labor unions in
Newton and Herrin for close-out agreements in the future. Employees
in Searcy, a non-union facility, also will receive severance, benefits
continuation and job search assistance.
Community Commitment
The company said it would work with local and state officials to ensure
that all available training resources are made available to affected
employees, and to reposition affected locations for future job development
opportunities within the community.
Cost Estimates
The preliminary estimate of termination and relocation costs resulting
from consolidation of Maytag administrative offices is approximately
$135-to-$145 million. Non-employee exit costs associated with laundry
facility closings are approximately $30 million. Whirlpool is unable
to estimate, at this time, the termination costs associated with the
manufacturing facility closings. Cost associated with the 10th
May announcement will be recognised as an assumed liability and accounted
for as part of the purchase price for Maytag in accordance with generally
accepted accounting principles.
Whirlpool continues to analyse integration costs and benefits associated
with the acquisition and will be hosting a conference call on May 23rd,
2006 to update guidance for the year.
Business
Ethics Magazine Names Whirlpool One of 100 Best Corporate Citizens
Whirlpool
Corporation has been named one of the 100 best corporate citizens by
Business Ethics magazine. The company is one of only 16 companies named
to the list each year since its inception seven years ago.
Business Ethics magazine released its annual survey of the ‘100
Best Corporate Citizens’ in the Spring 2006 issue published April
27th. The closely watched survey has gained national recognition as
an indicator of best practices in the area of corporate social responsibility.
‘We' re honoured to be named one of the 100 best corporate citizens,’
said Jeff M. Fettig, Whirlpool's chairman and CEO. ‘Whirlpool has
conducted business with integrity and extended a helping hand to people
in times of need throughout our nearly 100 year history. We believe
this recognition by Business Ethics magazine is a reflection of our
people, who personify our values.’
Seeking to put numerical ratings on service to these various stakeholder
groups, the 100 Best Corporate Citizens list uses data provided by KLD
Research & Analytics of Boston. It employs statistical analysis
to identify those major public U.S.
companies that excel at serving a variety of stakeholders well, using
eight measures of service: stockholders, community, governance, diversity,
employees, environment, human rights, and product. Each company then
receives an overall score based on their scores in the eight different
issue areas. More details regarding the 100 Best Corporate Citizens
list are available on the Business Ethics web site at http://www.business
ethics.com/whats_new/100best.html.
Founded in 1987, Business Ethics magazine is the only US-based business
magazine focusing on ethics and corporate social responsibility in a
media landscape otherwise dominated by traditional business publications.
Published four times a year with a total distribution to approximately
10,000 readers, it has a unique position and a unique readership of
thought leaders in business, investing, academia, government and civil
society organisations interested in corporate social responsibility
issues.
Part
P Training And Assessment For KBB Industry From NICEIC Domestic Installer
Scheme
The
KBB industry has welcomed a programme of assessment and training, launched
by the KBSA, which offers retailers a clear route to self-certification
under the requirements of the new Part P legislation.
'This legislation has created havoc in our industry and I am delighted
that the KBSA has been able to offer a solution that will help retailers
comply and get back to running their businesses,' says the KBSA .
'Members can now go on-line and find out how to apply to NICEIC on the
KBSA website: http://www.kbsa.co.uk.
'We have worked alongside NICEIC to develop this fast track solution
for KBSA members that includes special rates for courses only available
through the key account arrangement that we have established with NICEIC.
'Members who employ fitters who have experience of electrical work but
no formal qualifications can attend a new five day training course run
by NICEIC. This course is offered alongside other shorter courses for
fitters who may already have some qualifications.'
In addition to the training courses the NICEIC offers a welcome pack
on application that includes advice on how to meet the requirements
of the scheme, certification, insurance and on–site assessments.
The NICEIC can also arrange for on site assessment and provide a testing
kit.
'The key account arrangement we have established with the NICEIC offers
members a clear route to registration at a reasonable cost. Additional
benefits include ongoing support and priority bookings for training.'
'We would urge all members to visit our website and begin this process
as soon as they can. Despite the problems caused by the Government bringing
in this legislation too quickly, this should be viewed as a positive
opportunity. Members will be able to promote their compliance and offer
the customer extra comfort that they are dealing with a professional
company rather than a rogue trader.'
http://www.niceic.org.uk/nonapproved/index.html
Masco
Corporation Announces New Share BuyBack
Masco
Corporation announced on 10th May that its Board of Directors has authorised
the purchase of up to 50 million shares of its Common Stock in open
market purchases, privately negotiated transactions or otherwise. This
authorisation replaces the Company's existing programme under which
approximately 34 million of the 50 million shares previously authorised
had been repurchased. The Company had approximately 397 million common
shares outstanding at May 1st, 2006.
The Company also announced at its recent Annual Investor Day Meeting
that it expects to continue to return a minimum of $1 billion to shareholders,
on average annually, over the next several years through share repurchases
and dividends as part of its ongoing commitment to value creation. From
2003 through 2005, the Company returned approximately $3.6 billion,
in aggregate, to shareholders through share repurchases (97 million
shares) and dividends. In the first quarter of 2006, the Company returned
$408 million to shareholders.
Headquartered in Taylor, Michigan, Masco Corporation is one of the world's
leading manufacturers of home improvement and building products, as
well as a leading provider of services that include the installation
of insulation and other building products.
Web: http://www.masco.com
Gorenje
Teases Luxury Fridge-Freezer Market with Swarovski
Gorenje
has launched two Premium Touch fridge-freezers, crystallised with Swarovski
- one with 7,000 hand-embedded crystals (on sale in Harrods with an
unusual POA ('Price on Application') ticket and the other - much more
affordable for the likes of you and I (not) - with a mere 3500 glass
beads (sorry, 'jewels').
‘The Eye-catcher’
The unique Premium Touch 'fridge-freezer, called the ‘Eye-catcher’,
with its gloss black colour and elegant door, features 7,000 hand-embedded
crystals from the world famous Swarovski. This black refrigerator -
eye-catcher - is a unique appliance, with fewer than 10 being produced.
‘Commercial line’
Based on the ‘Eye-catcher’, the commercial series in black
and silver with 3,500 crystals in two rows is available for consumers
who long for something special and prestigious, and especially for Swarovski
fans.
The eye-catcher and the black commercial fridge-freezer are going to
be exhibited and exclusively available in Harrods in May and June 2006
and can also be viewed on http://www.gorenje.co.uk
‘The appliances introduce a new elegance to the white goods market
and along with the Pininfarina range, which was recently introduced
to the UK market, represent Gorenje's most prestigious collection,’
says the company.
‘Gorenje's visionary approach has engendered a unique philosophy
of the beauty of the home, where household appliances play a central
role as beautifully designed and unique elements in contemporary homes.
The Gorenje Swarovski fridge-freezers crystallised with Swarovski represent
a new generation of cooling appliances, featuring a myriad of advanced
functions.
The high-tech, 200 cm-high, user-friendly appliance is controlled by
a touch screen mounted at eye-level on the fridge door. The touch control
panel allows adjustment of the various settings of the appliance, displays
the temperatures and warns of any problems.
It is also the user interface for the built-in radio, recipe book and
voice memo recorder/player. Premium touch appliances are also environment-friendly
as they are classified as A+ energy rated.
About
Swarovski crystals
Swarovski is an Austrian company established at the end of 19th century
by Daniel Swarovski. The company is renowned for its tradition and excellence
in manufacturing and supplying crystals and crystal-ware, especially
for the jewellery and fashion industry as well as decorative homeware.
In the fashion world, Swarovski crystals have recently been a hot and
immensely sought-after accessory and component of haute couture. The
name Swarovski can thus be found on many a fashion item or piece of
jewellery created by famous fashion designers - among those are Coco
Chanel, Elsa Schiaparelli, Dior, Dolce & Gabana, Valentino and Roberto
Cavali.
From March 2006, a free 5-year parts and labour guarantee is now available
on Gorenje built-in appliances that are sold through its network of
nearly 1,000 retailers in the UK and Ireland. The guarantee covers all
built-in ovens, hobs, hoods, integrated cooling products and the company's
range of stylish freestanding retro fridges and two freestanding washing
machines from its laundry range.
For more information, call Gorenje on 0208 247 3980 or visit http://www.gorenje.co.uk
Record-breaking
Visitor Numbers at KBB/Expotile 2006
Now
the ABC audit has been completed, KBB / Expotile has announced 2006
visitor numbers at an all time high, registering 19,122 through the
door - a 15% increase compared to 2004.
'After the long wait for KBB / Expotile 2006, there was clearly no disappointment
when it finally arrived. From 22-25 January, five halls of the NEC were
packed with over 300 exhibitors, guaranteeing that KBB 2006 was the
most impressive and influential event to date', organiser CMP says.
The quality of visitors was commended by exhibitors, who felt that they
saw the 'right kind of people' that included developers, interior designers
and architects. Celia Warbrick, Press & PR for Brookmans Kitchens
comments, '..Sunday we were so busy you couldn't get onto our stand.
We had a fantastic show, kitchen specialists, builders and more surprisingly
many interior designers and developers! Previewing two new designs,
we were overwhelmed by the attention!' Lorraine Gamblin, Roman's Marketing
Director agreed, '...our show was constantly busy with a variety of
people; from retailers to interior designers and from journalists to
plumbers. KBB 2006 was the most successful show Roman has exhibited
and we can't wait for 2008.'
Paul Sweeney, KBB and Expotile Event Director gave his views on the
event, saying that 'The buoyancy of the attendance reflects the huge
importance of KBB in shaping the High Street as well as the contract
market. We can see the increasing influence and awareness of design
in the many new products launched at the show. The strength in UK and
overseas exhibitors was thoroughly reflected throughout the halls, acknowledging
KBB's importance in the international market place '
'75% of the event rebooked onsite for 2008, which will be a much larger
show, taking place between March 9-12 2008, using six halls. Expotile
will also be back within KBB after its success this year, attracting
a great number of architects to the stands.
The
Franke Sorter Achieves Red Dot Award
The
Sorter waste management system from Franke has recently achieved a Red
Dot Award for design excellence.
Set
up in 1955, the Red Dot Award recognises outstanding product design
and gives manufacturers the opportunity to use a recognisable quality
label on their award-winning products.
The Franke Sorter, which was one of the first under sink waste management
products to be launched in the UK, makes the recycling of household
waste convenient.
John Swain, product manager for Franke UK, commented: ‘In order
to encourage people to recycle their waste the process needs to be made
as simple as possible. The Sorter enables household waste to be easily
segregated and managed and we are delighted that this innovative product
has been recognised with a Red Dot Award.’
The hands-free KickMatic (700K) Sorter is operated by a touch of the
pedal and opens easily to give access to separated compartments. Franke
has also launched the Sorter Motion, which has a smooth closing action
(Blum motion).
An animation CD has been produced for Franke customers, which demonstrates
how the Sorter can be installed into a 500 or 600mm cabinet, taking
just 15 minutes.
For further information on Franke products, visit http://www.franke.co.uk
For more details about the Red Dot Awards, visit http://www.red-dot.de
Tel: 0161 436 6280
Email: john.swain@franke.co.uk
HomePro
Guarantees Four-in-One Insurance Performance for the KBB Sector
HomePro
Insurance - one of the UK's leading providers of Insurance Backed Guarantees
(IBGs) - has introduced a dedicated warranty product for the kitchen,
bathroom and bedroom retail installation sector.
Offering
home owners Insurance Backed Guarantees (IBGs) as part of a package
of works is a means of enhancing their confidence in a business - and
a powerful marketing tool when it comes to increasing quote acceptances.
HomePro's IBG scheme for the KBB sector is a four-stage product covering
deposits, stage payments, work in progress and quality of workmanship
for up to a decade.
Heralding new standards of value and re-assurance for the industry,
the IBG is cost-effectively priced and highly competitive compared to
those sourced from other providers or trade associations. Premiums not
only cover the cost of the installer's own guarantee; but also provide
the bonus of deposit protection up to 25% of the contract value which
may be asked of a customer at the start of a project. This level of
cover makes closing the sales process much easier because customers
are so much happier handing over the deposit safe in the knowledge that
it is fully protected. The IBG policy also covers an installer's guarantee
obligations for periods up to an industry-leading 10 years.
All HomePro IBGs exceed, and are compliant with; the Government's TrustMark
standards and all policies are underwritten and managed under the auspices
of the Financial Services Authority (FSA). HomePro Insurance was one
of the first companies in the sector to achieve FSA authorisation -
now a legal-must for installation businesses aiming to introduce such
policies to their own customers. HomePro Insurance is also listed by
the Office of Fair Trading (OFT) in its advice to homeowners, published
in the Having Work Done on Your Home: Organisations That Can Help booklet.
With over 15 years experience in the sector, HomePro specialises in
the retail installation and construction industries - offering products
that are not only highly competitive but are also associated with unrivalled
levels of service and cover. All HomePro insurance products are underwritten
'on shore': IBGs by IGI Insurance Company Ltd and Red Sands Insurance
Company (Europe) Ltd; while other policies, such as Public Liability
- are underwritten by Allianz Cornhill.
Tel: 0870 7 344 344
Web: http://www.HomePro.com
De
Dietrich Reports Sales Increases
Premium
brand De Dietrich has announced excellent year on year sales increases
in many of its product categories for the first four months of 2006.
Highlights of which include:
Hobs overall were up by 27%, with induction sales showing growth of
49% in the four month period 1st January 2006 - 30th April 2006. Pyrolytic
oven sales increased by 17% and microwave ovens also showed a marked
increase by 22%.
Christophe Gontier, managing director of FagorBrandt (pictured) says:
'While we know that the market is still tough, we are very pleased to
be bucking certain trends. These sales increases reflect our commitment
to our specialist independent dealers, offering them higher margins
and better after sales support. I am very positive about our progress
for the rest of this year, and now we have fantastic new products to
present to our dealers; I am excited about what we can achieve in the
future.'
De Dietrich Sales (Trade) 01256 308 067
Email: sales@fagorbrandt.com
Web: http://www.dedietrich.co.uk
Gaggenau
Launches First Totally Online Trade Promotion
In
what is believed to be the first below-the-line promotion of its type
in the UK kitchen industry, luxury built in appliance specialist, Gaggenau
has launched a totally online reward scheme for its retailers via a
specially created dedicated website at www.gaggenaudesigner.com
Called 'Gaggenau Designer', the promotion went 'live' on 3rd April 2006
and will be running throughout the remainder of 2006. Themed in the
brand's highly distinctive black, white and orange colourways, the mechanism
is designed to make participation easier than ever before.
By logging on to the website, retailers are automatically registered
for the promotion, receiving confirmation and personal passwords within
48 hours. This entitles participants to gain points each time they enter
a sale of a Gaggenau appliance, from ovens, hobs & hoods to dishwashers
and refrigeration. All elements of the promotion are totally online,
meaning access can be achieved 24 hours a day, whenever is most convenient
for the participant.
Reward points are awarded and accrued according to the exact model sold.
A minimum of 10, and a maximum of 30 points, can be achieved for one
appliance; every Gaggenau appliance in every product category of the
current 2006 collection is eligible for this heavyweight promotion.
Points are automatically accredited as soon as Gaggenau has actually
invoiced the appliances.
As each sale is registered, the site is instantly updated to show the
total points in hand. Furthermore, to add an element of competition
to the promotion, each participating retailer is entered into one of
three league tables, according to the company's turnover with Gaggenau.
At the end of the 9-month promotional period, the top five winners in
each league, and their partners, will each win a luxury 4-day holiday
to Marrakech in 2007.
A wide selection of other prizes is also available when the points are
redeemed online on a quarterly basis. These include travel vouchers
from Thomas Cook, grocery vouchers from Waitrose and Sainsbury's, department
store vouchers from John Lewis, Selfridges etc and Experience Days such
as hot air ballooning, Porsche driving day and pamper day. Wherever
possible, winners' vouchers will be hand delivered by Gaggenau's local
area business manager.
The promotional website is also home to other relevant information about
Gaggenau, such as home economist visits, training sessions and special
events like 'live' demonstrations. This will be regularly updated to
include all the latest company news. It also enables Gaggenau to have
immediate access to the dealers throughout the year for any urgent communications.
Comments Gaggenau Sales Director, Adam Roddan: ‘Points make prizes,
so the more you sell, the more points & prizes will be won. The
difference here is not only that the promotion is online and therefore
totally paperless, but also it's the competitive element. This will
hopefully motivate our dealers to sell more Gaggenau appliances across
the product spectrum’
Web: http://www.gaggenaudesigner.com
William
Ball Star Retailer Hits the Small Screen
Premier Kitchens & Bedrooms, an exclusive William Ball retailer with six outlets across the East Anglia region, recently came to the rescue of a family that had been ripped off by cowboy builders when creating their new extension. With a firm reputation for high quality service, and with the back-up of established brand William Ball, Premier Kitchens & Bedrooms was the obvious choice for Granada TV when it began the search for a quality company to save the day for its popular home makeover show House of Horrors.
(Above)
Cowboy builders left an extension looking like this, so Granada TV's
House of Horrors called in Premier Kitchens, who used William Ball's
Splendon range to create the much more satisfactory result, below
The
renovations were completed using William Ball's timeless Splendon range,
which combines solid maple frames with maple veneer centre panels in
a shaker style. Thus the large open-plan space was transformed into
an airy family room, complete with diner and soft seating area. The
installation took place last October and the show was aired on May 2nd
at 8pm on Network ITV.
William Ball's kitchen ranges start from £5,000, and come with
a five-year guarantee as standard.
Tel: 01375 375 151
Web: http://www.wball.co.uk
Smarter
Working Campaign gets TUC Support
Work
Wise UK now has the backing of the TUC for its three-year initiative
to encourage the widespread adoption of smarter working practices, such
as flexible working, mobile working, remote working and working from
home.
The TUC is supporting the campaign as it recognises the potential to
change for the better the way we work in this country.
TUC General Secretary Brendan Barber said: 'In an economy that is close
to full employment, in many sectors workers are shifting their focus
to quality of life issues. In practice this means gaining more flexibility
over working time, eliminating excessive working hours and cutting down
on commuting time.'
The TUC sees a huge scope for many workers to have more choice over
their hours and working patterns through smarter working practices.
Working smarter will increase efficiency and enable work to be completed
more quickly, lessening the need for long hours.
Brendan Barber continued: 'More than 10 million people regularly work
overtime, although only half of them are rewarded with extra pay or
time off in lieu.'
Apart from increased productivity, other benefits of smarter working
include reduced transport congestion and pollution, improved health,
assisting disadvantaged groups, and the harmonisation of work and family
commitments.
'Travel is an important element,' said Brendan Barber. 'The working
week figures do not take into account travel time, which in some areas
of the country is very significant.
'Simply reducing that element, or enabling the staggering of the rush
hour, will have a fundamental impact on people’s lives both in
terms of time and stress.'
Work Wise UK will start with Work Wise Week, Wednesday 3rd May to Tuesday
9th May, intentionally not the traditional working week. It will begin
with a major summit at the QEII Conference Centre in London where 400
influential delegates from government, unions and business will debate
how to deliver a smarter working Britain.
Phil Flaxton, chief executive of the IT Forum Foundation, a not-for-profit
organisation which is behind the campaign, said: 'Having the support
of the TUC is a significant step for Work Wise UK. It will be heavily
involved in the development of the programme, and in the implementation
over the three years of the campaign.'
Further information about Work Wise UK can be found on the website (http://www.workwiseuk.org).
Everything
Bespoke from Holzma at Unibase
Unibase
is one of Northern Ireland's fastest growing specialist manufacturers
of kitchen and now bedroom carcases. With a bespoke service that belies
the huge volumes at the Antrim factory, Unibase relies to a significant
extent on the performance of the company's Holzma saws and Magi-Cut
software.
With its 40,000ft2 factory recently extended to 60,000ft2, the company
now employs 45 staff and has reached a turnover of £3.5 million.
Between 3500 and 4000 cabinets a week are produced for a wide customer
base in what Managing Director Gary Hutton describes as 'batch size
one'. This equates to around 12,000 kitchens a year for both large volume
retailers and developers.
In
this modern factory the heart of production is the 3 Holzma beam saws
supplied through Homag U.K. Northern Ireland agent Electro-Tech Machinery
of Moneymore, Co.Tyrone. Also a Homag single-sided edgebander fitted
with a Ligmatech 'Boomerang' panel return device.
The saws are two HPL11 (rear lift feed) machines and the high capacity
HKL11.
With all saws operating Magi-Cut advanced optimisation software via
their CNC controllers the order processing division at Unibase is directly
connected to production so that every order is optimised as a unique
order so that, despite the huge volumes, the entire system is geared
to a 6-8 working day delivery from receipt of order.
While not all the Holzma saws at Unibase were part of a single order,
the company's experience with the superior performance that Holzma technology
offers have ensured they've stayed loyal to the brand.
Electro-Tech's Derek Reid explains that the excellent quality of cut
delivered consistently by the Holzma saws is the result of their patented
mono-rail saw carriage guidance system which ensures long-term, perfect
alignment between the main and scoring saw blades. This is especially
crucial when cutting MFC so that the following Homag edgebanding process
is produced with a faultless join. This element of quality on its products
is central to Unibase's success and the reputation the company enjoys.
The Holzma's consistent dimensional accuracy is also delivered via features
that are dust contamination free like the contactless magnetic encoding
system for the positioning of the program fence.
Recently Unibase has embarked on producing a new range of colour co-ordinated
carcasses for bedrooms and the quality of panels of the Holzma saws
are crucial for these tall units.
The Homag edgebander dovetails neatly into the production at Unibase
with all its units centrally controlled and set from the operator's
console and special units included as part of the line control like
contour trimming. The Ligmatech auto-panel return device is one of the
most popular pieces of equipment in any panel factory ensuring that
the edgebander is truly a one-man operation which also has positive
implications for quality control.
Gary Hutton says that a major factor in investing in Homag Group machinery
(apart from an excellent experience) is the significant back-up and
support offered on the ground by Electro-Tech and backed up one hundred
percent by Homag U.K.'s matchless after-sales and engineering division
as well as the permanent support from the machinery manufacturers in
the Homag Group itself.
Unibase is both geared up and poised for future growth and success with
the capacity to produce superior products with a peerless service.
Tel: 01332 856500
Email: info@homag-uk.co.uk
Web: http://www.homag-uk.co.uk
How
Much Water Does Showering Use?
Kirsten
Gram-Hanssen PHD a senior researcher for the Department of Housing and
Urban Renewal in Denmark, recently undertook a study on cleanliness
habits amongst Danish teenagers. Kirsten came up with some observations
that you may find surprising.
Her survey concentrated on teenagers and showed that the primary source
of dirt that they were concerned about was internal not external and
what drove their cleaning behaviour was peer pressure. They were so
keen not to be accused of smelling of body odour that they showered
as many as three times a day - more if they had taken part in a sport
or been to the Gym.
Their concerns were so strong that they would return home at lunch time
for a shower, rather than risk being smelly. The observations bring
into question how much water we use in the UK when showering - we think
it is around 45 litres a day, but perhaps we need to multiply that by
three.
Another thought that comes to mind is - the first deodorant manufacturer
that creates a pill that makes our sweat smell sweetly, could clean-up.