Electrolux
Blames Currency Losses for 35% Drop in Interim Operating Income
Electrolux has released its half-yearly report for 2003, which shows increased
sales for consumer durables in Europe (particularly Eastern Europe and
the UK), helped by recent restructuring which saw two German plants closed
but hampered by a negative currency effect. It has not deterred the group
from investing heavily in two major manufacturing facilities, one in Hungary
and one in Russia.
Net sales for the Electrolux Group in the first half of 2003 amounted
to SEK 65,375m as against SEK 70,804m for the same period in the previous
year. This corresponds to a decrease of -7.7% of which -10.8% refers to
changes in exchange rates. +0.7% to changes in the Groups structure, and
+2.4% to price/mix/volume.
Operating income declined to SEK 4,207m (6,513), corresponding to 6.4%
(9.2) of sales, and income after financial items decreased to SEK 4,132m
(6,376), which corresponds to 6.3% (9.0) of sales. Net income declined
to SEK 2,857m (4,812), corresponding to SEK 9.05 (14.60) per share.
Net sales in the second quarter of 2003 amounted to SEK 33,313m (37,224).
Of the total decrease -10.5% , -10.4% is attributable to changes in exchange
rates , +0.7% to changes in the Groups structure, and +1.2% to changes
in the group structure, and -1.3% to volume/price/mix.
Compared to the second quarter of 2002, changes in exchange rates, ie
in terms of both transaction and translation effects, had a negative impact
on operating income of SEK -375m and of SEK -340m on income after financial
items. These effects are traceable mainly to the strengthening of the
Swedish krona against the US dollar, the Canadian dollar and the British
pound.
Industry shipments of core appliances in Europe increased in volume during
the first half of 2003 by approximately 3% compared with the same period
in 2002. The Western European market was up 2%, mainly in the UK, while
the Eastern European market increased by 9%.
The Restructuring programme announced in 2001 continues to plan and has
contributed to savings of SEK 268m in the first half of 2003 (compared
to the first half of 2002). Savings for the full year are expected to
be SEK329m.
The Board has approved an investment of SEK 600m for the construction
of a new refrigerator plant in Hungary. This will specialise in combi-bottom
fridge freezers with an anticipated annual capacity of around 560,000
units. It will employ about 600 people and is scheduled for completion
in mid 2005. Eletrolux already has a large manufacturing base in Hungary
which produces around 2m fridges and freezers a year and some 2m vacuum
cleaners.
The Group will also build a washing machine plant in St Petersburg, Russia,
with an initial annual capacity of 150,000 units. Representing an investment
of SEK 80m, this will be onstream in 2004.
Asbestos litigation continues in the US, with 379 lawsuits pending as
of June 30th 2003, representing some 20,500 plaintiffs. A total of 167
new cases were filed during the second quarter of 2003 and 85 were resolved.
Approximately 20,000 of the plaintiffs are in the state of Mississippi.
Higher sales in Europe was assisted by recent restructuring, which included
the closure of one refriferator plant in Germany at the end of 2002 and
a hob plant, also in Germany, in the first quarter of 2003. An ongoing
process of consolidation has seen the production of a dishwasher from
a single platform for the whole of Europe, which will become the global
platform for this category. The overall number of product platforms will
be decreased by half within Europe - by a third by the end of 2003.
Part of this consolidation involves double branding of local products
with Electrolux in key markets: eg Arthur Martin in France, Juno in Germany
and Zanussi in the UK and Benelux. The first joint advertisements will
be seen in September in Central Europe.
Cowboy
Customers Leave Tradesmen in Debt
Many
British tradesmen experience problems with customers that leave them out
of pocket and in the red. Over half (59 per cent) of tradesmen across
the UK have had a bad experience with a customer according to findings
by Eagle Star Small Business Direct. Almost a third of those left in arrears
by customers (30 per cent) claim they are currently owed over £5,000,
14 per cent are due more than £20,000 and an unlucky one in 20 (seven
per cent) said they are owed monies to the tune of £50,000.
Getting people to settle their bills is the most common problem. The research
found that 60 per cent of tradesmen - plumbers, electricians, carpenters,
glaziers and builders - have been left out of pocket by people who simply
don't pay whilst 45 per cent say customers took more than six months to
clear their debts.
The impact of late payment has far-reaching consequences on small businesses.
Nearly half (49 per cent) of tradesmen owed money admit that their cash
flow is affected with 38 per cent having to work longer hours to redress
the balance and more than one in five (21 per cent) needing to take on
more work.
Unsurprisingly, almost half (46 per cent) of those questioned said difficulties
also arise when customers decide to change the specifications of a job
once the work has started. Equally as frustrating - 15 per cent of tradesmen
have experienced customers who have interfered with the work and jeopardised
the job.
Many (51 per cent) of those left out of pocket by customers opted not
to seek legal advice. Nearly three in 20 (15 per cent) of those opting
out of legal advice can't afford it and 12 per cent feel it would be too
complicated.
Steve Wilson, Managing Director of Eagle Star Small Business Direct says:
'We see plenty of TV programs on so-called cowboy builders, but there's
little on how some customers are reluctant to pay up for perfectly good
work. This can have serious repercussions on any small business, and as
tradesmen often pay up front for contractors and materials any delay in
receiving payment can prove costly.'
Eagle Star Small Business Direct has compiled a list of tips to help tradesmen
protect themselves:
• Ask for a deposit before you start the work
• Ask for payment of any materials up front
• If it is a large job, ask for payment in full or in instalments
before you start work
• Make sure customers put their job specifications down in writing
• Where possible, only work for known or recommended customers
Blum
Increases UK Commitment with New High-Tech HQ
Blum UK’s new purpose-built administrative headquarters and warehousing distribution facility is now fully operational. The state-of-the-art complex is situated not far from Blum’s previous headquarters in Milton Keynes, close to the M1 motorway. Both the administrative, sales and training facilities as well as the warehousing and logistics have been comprehensively upgraded.
The new warehouse now has a 4,000 euro-pallet capacity compared to the
1,300 capacity in the previous warehouse. It is also a fully mechanised
high-level stacking and retrieval system with computerised stock control.
Blum is now working a constant two-shift operation from 0700 to 1100 every
day. Significantly there is also the extension capability for a further
4,000 pallet capacity.
The modern and open-plan administration and sales offices have doubled
in size and the ground floor and reception areas lead into a working showroom
of Blum’s products, systems and latest innovations. A great amount
of detail has been given to the design and equipping of demonstration,
training and seminar facilities. An ongoing and comprehensive program
of varied training courses will take place for both Blum customers and
their retailers.
The new address of the Blum UK headquarters is: Blum UK Ltd, Mandeville
Drive, Kingston, Milton Keynes MK10 0AP.
Tel: 01908 285700
Fax: 01908 285701
Email: mailto:info.uk@blum.com
Web: http://www.blum.com
ALNO
and Wellmann Elaborate on the Aims of Their Planned Merger
ALNO
has announced that its proposed takeover of the Casawell Group will be
an all share deal with Whirlpool. In return for its 49.5% stake in Casawell,
Whirlpool is to receive 10% of ALNO’s new share capital. This amounts
to 1.17 million shares after full utilisation of the permitted increase
in share capital as agreed at this year’s ALNO annual general meeting.
The agreement also includes a supply contract from Whirlpool with ALNO
AG.
Both ALNO and Wellmann have been streamlined prior to the merger. In the
short term, there will be no production job losses either at ALNO in Pfullendorf
or Wellmann in Enger. It is expected that some jobs will be lost as duplication
in distribution and export is eliminated. Any cost savings from this and
the company’s greatly enhanced purchasing power will be used to develop
the group’s products in terms of innovation, functionality, design
and technology, providing trade partners with superior sales opportunities
in the future.
The remaining subsidiaries of both groups – Geba (Wellmann), Impuls
and Pino (ALNO) - will be retained and incorporated into the new concept.
The aim of the entire action is to present the market and the trade with
an accountable, solidly financed company. It will create more stability
in purchasing, marketing, distribution and infrastructure, offering a
wide range of product from a single source.
Orama
Commissions New Production Line
Orama,
the independent manufacturer of worksurfaces and associated decorative
products, has recently commissioned a new production line for its facility
in Somercotes, Derbyshire. The new production line has been built to serve
a singular purpose, which is to deliver a quality worksurface finish hitherto
uncommercialised in the UK (pictured).
The Orama production team delivered this turnkey project with a 5 month
turnaround from commissioning to production. The new line went live in
July 2003.
Geoff clarifies, ‘To commission the new line in such a short-time,
Orama did not rely upon a mechanical solution but instead invested in
utilising specifically purchased production equipment, combined with new
adhesives technology.’ He continues, ‘It was the innovative
combination of these two processes that allows our new production line
to manufacture a whole new product range, which coincides with our imminent
launch of a new range of products.’
Orama’s new production line yields a higher quality finish than the
standard manufacturing lines. It utilises no heat in line, but yields
a flatter surface finish on the final product. Geoff claims, ‘By
working closely with our adhesives supplier to change the adhesive for
the new line, and by commissioning new equipment, Orama has brought into
production the first flat bond worksurface manufacturing line in the UK,
from an independent commercial organisation. The result- a new mirror
flat finish for gloss and selected worksurfaces.’
Orama offers high quality durable decorative panels and worksurfaces.
Established for many years, Orama holds ISO 9002 certification and the
Furniture Industry Research Association Gold Award for product performance.
The company is also a corporate member of the KBSA (Kitchen Bathroom Bedroom
Specialist Association). All Orama’s chipboard and solid timber products
are sourced from 'responsibly managed' forests.
Tel: 01773 520560
Web: http://www.orama.co.uk
Showerlux
to Celebrate 30 Years of Trading in the UK
Bathroom
specialist Showerlux will be turning 30 this October and is holding a
day of celebrations at its new premises to commemorate the special occasion.
The Coventry-based manufacturer has invited over 150 of its key customers
to join in the celebrations at the company’s new 200,000 sq ft Head
Office. Guests will be given a full tour of the new premises as well as
the opportunity to preview a number of exciting new product developments.
The day will be rounded off with a medieval banquet at the magnificent
12th Century Coombe Abbey.
Founded as a subsidiary of the Swiss-based Duscholux Group in 1973, Showerlux
UK Ltd has grown to become one of the UK’s leading bathroom manufacturers.
Originally a company employing just 16 staff with monthly sales of only
£50,000, Showerlux now has an annual turnover in excess of £20
million and a workforce of 175 people.
The product range has developed at a similarly impressive pace, with the
Showerlux bathroom collection now offering luxury spa and whirlpool baths,
steam showers and designer bathroom furniture as well as its core range
of shower enclosures, doors and trays.
Managing Director Bob Bowler comments: 'Our 30th anniversary is a major
milestone that coincides with our move into the new premises, which is
another important occasion. We felt that this was a great opportunity
for a dual celebration that will reward our customers as well as our employees.
I am sure it will be a fantastic day that will provide the opportunity
to reflect on the last 30 years and also to look forward to what I am
sure will be another hugely successful 30 years for Showerlux.'
Tel: 02476 88 25 15
Web: http://www.showerlux.com
Maytag's
Fridge Freezers with Exceptional Elevator Shelf
There
is never space available in the right place in any refrigerator after
shopping. We can spend ages with the fridge or freezer door open trying
to squeeze and wriggle the last bottle or package on to a shelf. And often
we have to move a shelf up or down to make more space, but not before
we have unloaded it.
Maytag has a solution, the simple and effective Maytag Elevator Shelf.
Storage space may be adjusted and room created in seconds by simply turning
the handle to raise or lower the shelf. No need to unload first either,
the shelf can be adjusted with up to 601bs/27Kgs of food in situ .
'lt's the little things that make such a big difference and the elevator
shelf is one of them. Getting shelf arrangements right the first time
around is nigh impossible. With this innovative system it makes unloading
the shopping so much less of a chore.
' It's also a great differentiator at the point of sale and gives the
retailer an opportunity of trading the consumer up to the Maytag brand
and at the same time improve the bottom line!' says Holly Burrow, Maytag's
Marketing Manager.
Available on all Maytag models (except the top mount) and the built-in
Amana Alaska in both the fridge and freezer.
Tel: 01737 231 000
UK
Could Make Olympic Sized Savings - UK Tops the Table in Terms of Money
Wasted
New
research from Electrolux reveals that the UK tops the table of European
countries when it comes to money wasted from inefficient household appliances.
What’s more, the negative environmental impact from old appliances,
prevalent in the saturated UK market, is amongst the worst in Europe.
The research found that switching to modern energy efficient appliances
could result in the following savings:
*The UK would save enough fresh water a year to fill 351,752 Olympic sized
swimming pools
*The UK would save enough electricity a year to run all home computers
for almost seven years
*The average UK family could save up to £120 a year by switching
to energy efficient appliances
With the new EU energy labelling for electric cookers and ovens now in
place, it’s easy for consumers to see which models will help save
them money and energy.
The labelling includes details of the ‘Energy Class’, ‘Energy
Consumption’ and ‘Oven Size’ and is an extension of the
scheme already in place for refrigeration products and laundry and dishwashing
appliances. Appliances are rated A to G in the Energy Class, with ‘A’
being the most efficient and ‘G’ the least. The more energy
efficient an appliance is, the more money you can save – and the
more you can help the environment. Almost all Electrolux ovens fall within
the A & B energy class, making them among the most energy efficient
products on the market.
The research carried out by Electrolux’s ‘EcoEco Savings Project’,
was designed to research the reduced environmental impact of new appliances
through potential cuts in water use, electricity consumption and CO2 emissions.
The results are based upon the assumption that all households would replace
ten-year old appliances with modern, more environmentally sustainable
counterparts.
Figures indicate that replacing old appliances with modern ones can result
in savings of up to 87% on water and, for products such as dishwashers,
a reduction in electricity usage of up to 22%.
'The capacity of modern, energy efficient, household appliances to produce
financial savings as well reduce environmental impacts is often underestimated
by consumers,' said Roger Taylor, managing director, Electrolux Home Products,
'All the additional energy and water used by these appliances has to be
paid for every year. More efficient appliances can make a real difference
to household bills.'
Washing machines are a good example: modern appliances can use up to 14%
less electricity and 87% less water than those of ten years ago.
Newer appliances are also significantly more energy efficient than doing
the job yourself – as well as a lot less boring! Recent research
has shown that, contrary to popular belief, dishwashers reduce energy
and water consumption by up to 60% compared to hand washing.
Whirlpool's
Q2 Results Shows Profits up 34% on Sales up 9%
Whirlpool
Corporation announced on 24th July second-quarter 2003 net earnings of
$94 million, or $1.35 per diluted share, compared to $63 million, or $0.91
per diluted share, in the same period last year. Second-quarter net sales
of $2.99 billion increased 9 percent from last year. Excluding consolidated
sales from the company's 2002 acquisitions - Polar S.A. of Poland and
Vitromatic S.A. de C.V. of Mexico - and currency translations, net sales
increased 2 percent.
'This performance reflects the solid contributions from our global businesses
and brands, including the introductions of innovative new products worldwide,'
said David R. Whitwam, Whirlpool Corporation's chairman and chief executive
officer. 'The results also demonstrate the positive impact from continuous
improvements in productivity, and from actions we are taking to align
the company's cost structure with current economic and industry conditions.'
Second-quarter earnings include a previously announced non-cash curtailment
gain of $13.5 million (after tax), or $0.19 per diluted share, from a
change to the company's U.S. retiree healthcare plans.
The earnings also reflect charges of $11 million (after tax), or $0.16per
diluted share, primarily for final costs related to a recall of certain
microwave oven hood combination products in 2001.
Second-quarter 2002 earnings included a restructuring and related charge
of $19 million (after tax), or $0.26 per diluted share, and an asset write-down
of $22 million (after tax), or $0.31 per diluted share, related to a minority
business interest.
Operating profit of $195 million for second quarter 2003 included the
previously mentioned recall charges, as well as increased pension expenses
and the elimination of Brazilian tax credits. Operating profit also reflects
significantly lower operating costs from spending controls, lower compensation
expense and improvements in material costs and productivity.
'As we discussed previously, our challenge from pension costs and Brazilian
tax credits, year-over-year, amounted to approximately $0.34 per share
in the second quarter,' said Whitwam. 'Our aggressive cost reduction efforts
during the quarter, combined with the company's ongoing productivity improvement
and restructuring benefits, largely offset this challenge.'
Second-Quarter
Global Highlights
* $2.99 billion in net sales was a record for the company.
Operating profit was $195 million. Net earnings were $94 million, or $1.35
per diluted share.
* Whirlpool Corporation received awards for home appliance design innovation
in the 2003 Industrial Design Excellence Awards (IDEA) competition. The
company received a gold award for the innovative Whirlpool® Duet®
fabric care system and its European counterpart, Whirlpool® Dreamspace™.
The company also received bronze awards for the KitchenAid® briva
in-sink dishwasher and the Supermatic®Tapa Lava-Lava™ clothes
washing innovation designed for consumers in Mexico. Presented by the
Industrial Designers Society of America and sponsored by BusinessWeek,
the IDEA is widely regarded as the premier award for industrial design
in the United States.
* Whirlpool Europe was recognised as the Euronics major appliance Supplier
of the Year for 2003. Euronics represents Europe's largest group of major
appliance retailers with 6,500 stores in 21 countries. The award is based
on quality of products and services, growth of euro sales, and the ability
to serve Euronics in expanding markets.
* Whirlpool Europe was selected by the Swedish-based IKEA group to be
the retailer's exclusive global supplier of major appliances. IKEA is
a global home furnishing retailer with 146 stores in 22 countries.
* Whirlpool Corporation co-sponsored the 2003 Jimmy Carter Work
Project in Valdosta and La Grange, Ga., and in Anniston, Ala. JCWP is
a program of Habitat for Humanity International, a non-profit organisation
that builds affordable houses in partnership with those in need of adequate
shelter. Employee volunteers helped build 92 homes over five days in June,
and Whirlpool donated nearly 800 appliances.
Second-Quarter Region Review
Whirlpool North America's sales of $1.96 billion increased 6.7 percent
from the prior year period. Excluding Whirlpool Mexico, sales were up
1.7 percent.
Operating profit declined 5 percent, due primarily to the recall charges
and year-over-year increases in pension and employee-related healthcare
costs. The decline was partially offset by the curtailment gain, lower
compensation expense, spending controls and savings from productivity
improvements.
Record shipments reflected continuing strong consumer demand for Whirlpool®
and KitchenAid® branded products, including the Whirlpool® Duet™
clothes washer and dryer pair, the Whirlpool® Conquest™ side-by-side
refrigerator and the KitchenAid® Architect® series of stainless-steel
kitchen appliances.
U.S. industry unit shipments of major appliances (T7(a)) increased 0.8
percent from the prior year period, and are expected to grow moderately
in the second half of the year. Full-year shipments are expected to increase
by approximately 1-to-2 percent.
During the quarter, the company introduced the KitchenAid® Pro Line™
series at the 2003 Kitchen/Bath Industry Show in Atlanta. The KitchenAid®
Pro Line™ series is a collection of major and countertop appliances
featuring distinctive design and superior professional-level performance.
Whirlpool Europe's sales of $628 million increased 23.7 percent from the
prior year period. (Excluding currency translations, sales increased approximately
2 percent.) Strong consumer demand for new innovative products, including
the Whirlpool® Dreamspace™ clothes washer, the Whirlpool®
Conquest™ side-by-side refrigerator, and the Whirlpool® Mini-BI
microwave oven, were reflected in the increase. Operating profit, which
was affected by market price declines, increased due to significant improvement
in productivity and volume growth.
During the quarter, appliance industry unit shipments increased by 2-to-3
percent from the prior year period, and are expected to be moderately
higher in the second half of 2003. Based on current economic conditions,
the company expects full-year industry shipments to grow by 1-to-2 percent
from last year's level.
Whirlpool Latin America's sales of $318 million were flat compared with
the prior year period. (Excluding currency translations, sales increased
approximately 10 percent.) Industry shipments in Brazil declined 22 percent.
Despite a challenging economic and industry environment, as well as the
expected elimination of tax credits during the quarter and higher material
costs, operating profit increased by 8.2 percent and operating margin
improved from the prior year period. The results reflect improved product
pricing, growth of appliance exports and cost savings from productivity
initiatives.
Based on current economic conditions, the company expects full-year industry
unit shipments to decline 12-to-15 percent from last year's level.
During the quarter, Brastemp brand introduced Luminata™, a complete
line of premium kitchen appliances for Brazilian consumers. Also, the
Consul brand was named a top-ten Superbrand in Brazil by the magazine
Revista Expressao. The brand was honored for its refrigeration and air
conditioning product lines.
Whirlpool Asia's sales of $118 million increased 7.4 percent from the
prior year period. (Excluding currency translations, sales increased approximately
3 percent.) The success of new product introductions and expanded distribution
helped drive the sales improvement throughout the region. Operating profit
was affected by market price declines, increased provisions for operating
reserves and the impact from SARS, which drove a 15-to-20 percent retail
sales decline in the Hong Kong region.
Based on current economic conditions, the company expects full-year appliance
industry shipments in the region to increase 3 percent from last year's
level.
During the quarter, Whirlpool India introduced the Direct Cool™ refrigerator
with the fast forward ice™ option that gives Indian homemakers in
hot climates the ability to rapidly make ice. In China, the company introduced
the Whirlpool® Jupiter™ clothes washer with Season Sensor™,
a technology that automatically adjusts the wash cycle for seasonal changes
in water temperature.
Outlook
'Based on our current view of second-half economic improvement and industry
demand in key markets, as well as the anticipated benefits from new product
introductions, benefits from acquisitions, and ongoing improvements in
cost productivity, we continue to expect full-year earnings-per-share
of $5.90-$6.10,' said Whitwam.
Winners
of Dornbrachts’s Solitude Design Competition Selected
Iserlohn
manufacturer of fittings and accessories Dornbracht has organised a bathroom
design competition in conjunction with bad & heizung concept AG, Berlin.
Entrants were given the task of designing a modern bathroom, using the
Solitude multifunctional column designed by Dornbracht, which logically
incorporated the advantages of the product into the design.
Solitude’s space-saving ability and the object-like nature of the
column are just some of the advantages of this compact product, which
combines the functions of a small bath with a shower and wash basin in
one product. A jury in Iserlohn judged the bathroom designs submitted
and the best designs were awarded prizes.
Thomas Wienforth (Managing Director of bad & heizung concept AG),
architect Dirk Meuleneers from the agency Meiré and Meiré,
Cologne, Ladan Ghafoori, in charge of Architect Communications at Dornbracht,
and Holger Struck, PR and Cultural Communications Director, together with
Dornbracht, chose the winner from the 14 anonymous entries on the basis
of a points system.
During the judging particular attention was paid to the creativity of
the overall solution in relation to proper integration of the multifunctional
column, innovative use of materials, use of the available space, the cost-utility
aspect, and the quality of the documents submitted. Despite the high quality
of all the designs submitted, the proposal by the firm Vitus König
from Aalen came out ahead of the other entrants with the greatest points
total. A prize of a Solitude multifunctional column valued at around 11,000
euros is now on its way to Aalen.
The design by Kreuz GmbH from Schnaittach gained second place. Dreyer
GmbH from Erlangen, and Bruening from Muenster took joint third place.
Furthermore all the participants were rewarded for their efforts with
a fitting from the Dornbracht range.
Caption: Dieter Kraus (Target Group Marketing Director, Dornbracht) awarding
prizes to the first- and second-placed contestants (l-r) Bernd König
from Vitus König in Aalen, Ingrid Kreuz from Kreuz GmbH, Schnaittach
and Gerd Schmidtke (interior designer), responsible for bathroom design
at Vitus König, shown being congratulated on their awards.
Rating
Agencies Affirmed Sanitec Rating but Revised Outlook
Sanitec's
two rating agencies, Moody's and Standard & Poors, have each affirmed
Sanitec's previous credit and debt ratings. Both agencies, however, revised
their outlook on Sanitec from stable to negative on concerns of liquidity
development in late 2003.
The agencies' analysis is primarily based on Sanitec's past 2002 financial
results. The Sanitec management shares the agencies' view that the implementation
of the company's ongoing integration, efficiency and cost control programs
is the key to producing an improved result even in a weak market situation,
as was already proven in Q1/2003.
Sanitec will publish its Q2/2003 Interim Financial Report on 28th August
2003. A Conference Call will take place on 29th August 2003.
Web: http://www.sanitec.com
KSA
to KBSA - What it Means to You
In-toto
is a member of the Kitchen Specialists' Association (KSA) This safeguards
you when buying a kitchen in addition to the excellent procedures already
in place by In-toto's supplier and parent company, Wellmann kitchens.
However some In-totos sell bathrooms and bedrooms and unless these products
were backed by the manufacturers, the level of consumer protection rarely
was as good as kitchens. Now the KSA has become the KBSA, taking in bathrooms
and bedrooms as well. This means that you can turn to a professional body
in case of dispute and also receive the goods you ordered in the event
of showroom closure (fire, illness etc.).
KBSA members such as In-toto offer total protection for buyers.
FMB
Urges Minister to Include SMEs in New Public Sector Procurement System
The
Federation of Master Builders (FMB) has welcomed the new construction
minister's initiative to set up a web-based procurement system for public
sector projects. If planned correctly, the procurement initiative, which
is due to be unveiled by the government later this year, could have significant
benefits for the small and medium sized building firms that make up the
FMB's 13,000 strong membership.
A central web-based database should reduce the cost to local authorities
of administering their own lists of approved builders, enabling them to
draw from a larger pool. Around 10% of FMB members are already registered
on Constructionline, which may form the basis of the new system. But,
says FMB director of external affairs, Andrew Large, the construction
minister must ensure that smaller companies that are often less familiar
with IT and the Internet are not excluded from public sector procurement.
The FMB is hopeful that the minister's broader remit for small business
and enterprise will lead to a more sympathetic approach.
'This could be the first opportunity for Nigel Griffiths to show his SME
credentials,' said FMB director of external affairs, Andrew Large, 'and
we would welcome the opportunity to work with him to develop an appropriate
network of accredited SME contractors.'
One option would be to enlist the support of trade associations, such
as FMB, to serve as web-portals for their members.
Said Andrew Large:
'The FMB already offers a web-based Find A Builder service for homeowners
looking for competent builders in their area. This service could be developed
for the public sector, linking a wide range of vetted building firms into
the government procurement scheme.'
New
Director to Strengthen OFT's Consumer Protection Team
Colin
Brown, currently Chairman of the Financial Services Consumer Panel, has
been appointed the new branch director of Co-regulation and Coordination
in OFT's Consumer Regulation Enforcement Division.
Colin Brown will lead the development, promotion and implementation of
OFT policy on self-regulation and in particular OFT's new regime to support
consumer codes of practice. He will also play a key role in coordinating
OFT's enforcement with others, both in the UK and internationally.
After graduating from Surrey University, Colin worked as a researcher
and in 1978 joined the Policy Studies Institute. In 1990 he joined the
Consumers' Association, ultimately becoming Deputy Director of Research.
He then became an independent consultant, working on research and policy
development for a number of consumer organisations in the UK and internationally.
In 2001 he became Chairman of the Financial Services Consumer Panel, representing
consumer interests in the policy making of the Financial Services Authority.
He joins OFT on 1st November after directing the programme for the 17th
World Consumer Congress in Lisbon in October.
Maytag
Corporation Forms New Appliance Services Business in USA
Maytag
Corporation has formed a new business to create growth in home and commercial
services, with an initial focus on providing in-home consumer appliance
service. Maytag Services will expand its existing capabilities of servicing
only Maytag brand appliances to the repair and maintenance of all major
appliance brands throughout North America.
'We are enthusiastic about the potential for this new business and the
extension of the Maytag name and reputation for dependability to an area
outside of manufacturing,' said Ralph Hake, Maytag chairman and chief
executive officer. 'Service is a significant growth opportunity for the
company and the establishment of Maytag Services is expected to move the
organisational mission from being solely a provider for Maytag Appliances
to that of a growth-oriented services business.'
The creation by Maytag of a comprehensive appliance services company follows
recommendations from a special team, which studied the industry situation
and opportunities during the past year. The team found that conveniently
scheduled, quality all-brand service by Maytag would be of value to consumers
seeking in-home appliance repair, improving the quality of the consumer
service experience.
'With the changing marketplace, consumers today have fewer appliance service
options,' said Steve Benton, vice president, Maytag Services. 'Maytag's
brand and heritage create a unique opportunity to provide consumers with
a quality service alternative.'
In the past, the service division supported only the Maytag Appliances
business and company brands. With this announcement on August 14th, the
new company plans to support all major brands in select markets, including
a new agreement with Samsung Electronics America, a leading electronics
and home appliance manufacturer with No. 1 global market share in microwave
ovens. The agreement authorises Maytag Services as a service centre for
warranty and out-of-warranty service on unique Samsung appliances. As
the new company grows, Maytag Services will seek other clients and comprehensive
service support relationships.
'Samsung is committed to offering world-class service and support on its
award-winning and innovative Home Appliance products, which today includes
a full assortment of refrigerators, microwaves, and air conditioners,'
said John Garrison, executive vice president/Digital Business, Digital
Consumer Electronics Division, Samsung Electronics North America. 'We
are pleased to add Maytag Services to support our growing, valued customer
base.'
'We are committed to innovation and finding new ways to grow revenue opportunities
for the company,' Benton said. 'This is truly an expansion of Maytag and
we intend to invest in its development, obtaining the necessary technology
to run a best-in-class services business, and in hiring and training technicians
and support staff.'
Maytag Corporation is a leading producer of home and commercial appliances.
Its products are sold to customers throughout North America and in international
markets. The corporation's principal brands include Maytag, Amana, Jenn-Air,
Jade, Hoover and Dixie-Narco.