Nobia
Continues Sales and Profits Growth from UK Kitchen and Nordic Markets
Sales for the Swedish Nobia group continued to progress favourably in
the first half of this year, underpinned by continuing investments in
distribution channels and markets. Organic growth was 10% for the first
half-year and 12% for Q2. Net sales during the first half-year rose by
22% to SEK 5,780m (2003: 4,752m). Organic growth for the UK business was
8% and for the Nordic business, 13%. Positive development also continued
in the Continental European business with organic growth of 10%. Flat-pack
products accounted for 20% of Nobia's sales in the first half-year.
The Group's operating profit before goodwill amortisation (EBITA) climbed
by 38% to SEK 505m (2003: 367m) and earnings per share after dilution
increased by 29% to SEK 4.49 (3.47). The increase in profit was mainly
due to the positive profit contribution from acquired units, increased
volumes and improved cost effectiveness stemming from measures such as
those implemented in the Norema and Magnet Business units and the Continental
European business.
Product supply costs continued to fall despite the counteractive effect
of rising raw material prices. The first half of 2003 also included profit
from the sale of leases and properties in the UK business of SEK 33m.
Excluding this profit, the operating profit before goodwill amortisation
rose by 51%. The integration and development of Gower is proceeding according
to plan.
It is estimated that demand increased by 3% in the UK. In the Nordic market
the overall increase in demand is estimated to be around 7%. Demand in
Germany was mainly stable, whereas it fell somewhat in the Netheriands.
Net sales rose by 22% to SEK 5,780m (2003: 4,752m). Adjusted for currency
effects, net sales increased by 10% for comparable units, i.e. excluding
the acquired unit Gower, the closed-down unit, Goldreif, and the acquisition
of three Poggenpohl stores in London.
The operating profit climbed by 35% to SEK 457m (2003: 338m). The operating
profit improved in all business regions. Profit was boosted by the consolidation
of acquired units as well as increased volumes, higher average order values
and improved cost-effectiveness. The measures implemented in the Continental
European business, including the closure of the loss-making German Business
unit, Goldreif, also had a profit-enhancing effect. Profit for the first
half-year of 2003 included profit from the sale of leases and properties
amounting to SEK 33 million.
Higher goodwill amortisation relating to acquisitions had a negative impact
on the operating profit. Excluding goodwill amortisation, the operating
profit climbed 38% to SEK 505m (2003: 367m). The profit after tax amounted
to SEK 260m (200m), which represents earnings per share after dilution
of SEK 4.49 (3.47).
Second quarter 2004
Group net sales rose by 23% to SEK 2,967m (2,406m) compared with Q2 in
2003. Organic growth was 12%, which represents a higher growth rate in
both the Nordic and UK businesses compared with the previous quarter.
The operating profit was SEK 260m (174m). The second quarter of 2003 also
included profit from property sales amounting to SEK 9m. This improvement
in operating profit was attributable to the consolidation of acquired
units as well as increased volumes, higher average order values and improved
cost-effectiveness. he acquisition also meant higher goodwill amortisation
than the corresponding quarter of 2003. The operating margin was 8.8%
(7.2%). Before goodwill amortisation, the operating margin was 9.6% (7.8%).
The UK business
Net sales in the UK amounted to SEK 2,704m (1,937m), which corresponds
to an increase of 40 per cent. The Gower Business unit, which was acquired
in December 2003, contributed SEK 591m. Excluding currency effects, sales
for comparable units increased by 8%.
Sales of kitchen, storage and bedroom interiors climbed by 12% compared
with the first half of 2003, adjusted for currency effects and for comparable
units only. Growth for fitted kitchens was 8%. This growth was driven
by increased volumes - mainly relating to the professional customer base,
for which a range renewal has been implemented - continued increases in
average order values and the positive effects of Magnet's ongoing store
investment programme. To date, five stores have been renovated. The pace
of the renovation programme will be stepped up in the second half of 2004.
Flat-pack products accounted for 31 per cent of sales in the first half
of the year. This I segment continued to grow faster than fitted products.
Sales of both joinery products and bathroom interiors fell by 4 per cent.
The operating profit before goodwill amortisation amounted to SEK 228m
(154m). The operating profit was positively affected by the consolidation
of Gower, higher sales volumes and average order values as well as improved
cost-effectiveness as a result of the measures carried out in C.P. Hart
and Magnet. This was partially counteracted by lower sales and margins
in the joinery and bathroom businesses.
The operating margin before goodwill amortisation was 8.4% (8.0%). The
profit for the first half of 2003 included profit from the sale of leases
and properties amounting to SEK 33 million. Excluding the sale of leases
and properties, the operating margin for the first half-year of 2003 was
6.2%.
Sales in the Second Quarter increased by 44% to SEK 1,336m (929m). Organic
growth was 11 per cent, and stemmed mainly from increased sales of both
fitted and flat-pack kitchens. Sales of bathroom interiors were at the
same level as Q2 of 2003, whereas sales of joinery products decreased.
The operating profit before goodwill amortisation amounted to SEK 99m,
compared with SEK 43m for Q2 in 2003.
Big
Build-Up for Stoves Built-in Collection
Stoves
has unveiled a new collection of ovens, hobs and hoods, offering retailers
a total, coordinating built-in package for the modern kitchen.
The launch reveals a contemporary new look for the brand and marks the
first phase in a series of new product developments designed to reinforce
Stoves’ premium position within the kitchen appliance sector.
The built-in collection offers a wide choice of around forty gas and electric
single and double ovens, together with a choice of coordinating gas and
electric hobs.
Ovens are available in 60cm, 70cm and 90cm sizes and can be built under
or built-in at high level when selecting the 90cm option. Fanned electric
and intelligent electric Multifunction ovens are accompanied by the inclusion
of conventional and fanned gas models. Stoves’ gas Rotostar fanned
oven is also featured in the new improved range.
To coordinate with the range of ovens, there is a wide selection of gas,
electric and much-improved induction hobs to suit most consumer requirements.
The new-look Stoves range includes standard 60cm four burner gas and higher-specification
70cm gas hobs. Both sizes offer a choice of shiny black enamelled or cast
iron pan supports, and all come with automatic ignition as standard. Powerful
central wok burners are also a feature on the 70cm wide hobs.
Improvements have also been made to Stoves’ ceramic glass electric
hobs and touch control models, including the introduction of raised ridges
on ceramic models to separate the control panel and heating elements should
spillages occur.
To ensure Stoves’ built-in appliances coordinate with all manner
of kitchen furniture and décor, three classic, contemporary colours
– stainless steel, black and white – are now available across
the range.
High
specification cooker hoods and splashbacks provide the finishing touches
when teamed with Stoves ovens and hobs. Most notably, Stoves has introduced
a fashionable 60cm wide glass splashback made from 8mm toughened glass
with bevelled edges, as an alternative to stainless steel.
The glass splashback coordinates with a new designer glass cooker hood
that is available in 60cm, 70cm and 90cm widths, as well as stainless
steel, black and white chimney hoods that feature in the built-in collection.
A selection of fully integrated appliances, including dishwasher, washer
dryer and fridge-freezer complete the offer. All integrated appliances
now feature Stoves branding to the interior.
Jayne Hall, Marketing Director for Glen Dimplex Cooking, comments:
‘Further to extensive market research, the entire Stoves built-in
collection has been developed by focusing on what is important to both
the trade and the consumer.
‘Meticulous attention has been paid to the styling, quality and performance
of all the built-in products and we have packed them with features designed
to make them easier to use and easier to clean. As a result, the range
is now easier for retailers to sell and offers them a one-stop-shop for
all their built-in requirements, with the added benefit of excellent margins
on sales.
'We think the one aesthetic, one brand approach is particularly good news
for retailers with limited display space and presents a greater opportunity
for trading-up. With gas and electric fuel options available on all Stoves’
60cm, 70cm and 90cm built-in ovens, retailers need only display one model
to help sell the entire range and encourage their customers to trade-up.
‘We are confident Stoves new collection meets the requirements of
the more discerning customer, with many unique features of the built-in
range designed to give the brand and retailers the competitive edge in
an increasingly competitive marketplace.’
A 38 page built-in brochure has been designed to accompany the new Stoves
collection. Alternatively, a CD Rom is available together with an easy,
at a glance guide to the complete built-in range.
Tel: 0151 432 7849
Web: http://www.stoves.co.uk
The
Two Marcos Head up Merloni in UK and Italy
Marco
Marini has been appointed Managing Director of Merloni Elettrodomestici
UK, following the promotion of Marco Milani to CEO of Merloni Elettrodomestici
Group in Italy. He is currently the UK operation's Chief Financial Officer.
Marco
Marini (left) has been with Merloni since 1994 and has extensive European
management experience having worked in France, ltaly and Germany as well
as the UK. With Merloni he has held a number of financial roles within
the company, including West Europe Controller.
Merloni is the biggest white goods manufacturer in the UK with 6,000 employees
in four factories in Yate (Bristol), Peterborough, Blythe Bridge (Staffordshire)
and Kinmel Park (North Wales). Merloni produces fridge freezers, cookers,
washing machines and dryers in the UK under the brand names Hotpoint,
lndesit and Cannon and it operates a 1,600 strong customer services team.
Marco Marini said: 'I am looking forward to continuing the great work
done in the UK so far. Now that the integration of Merloni UK is complete,
we will concentrate on continuing to deliver excellent product and service,
day after day, to ensure that we reinforce our market leadership in the
UK.
'The UK white goods market is the biggest in Europe and I am pleased that
I will continue to work with the excellent management team and employees
we have in the UK.'
Marco Milani, CEO of Merloni Elettrodomestici Group, said:
'lt is good news for customers, it is good news for staff and it is good
news for shareholders as Marco will continue to develop our UK operations
into world class facilities.'
Merloni is the market leader in the UK with a market share of 30%. It
owns the Hotpoint brand which was recently named as one of the top five
UK brands.
Marini is 36 and married with two children. He studied in ltaly and has
a degree in Economics and a Masters Degree in business administration.
In his spare time he reads, watches movies and scuba dives.
Marco
Milani (right), 50, an engineering graduate, has been apponted new chief
executive officer of Merloni Elettrodomestici from 27th July following
approval of the first half report and due conferment of powers.
Formerly CEO at Merloni Elettrodomestici UK, Marco Milani takes over from
Andrea Guerra, who has led the company since January 2000 and is leaving
to take up a new position.
'This is an internal choice, one of continuity' said Vittorio Merloni,
'and favoured by Andrea Guerra himself, who worked very well with Milani
for the Company's growth and development. Andrea Guerra's four years in
office, from 2000 to date, have raised Merloni Elettrodomestici to the
number three ranking in the European white goods industry.'
Marco Milani's career shows a strong international bias. Having joined
Merloni Elettrodomestici in 1980, he has held increasingly important posts,
both industrial and commercial, in ltaly and abroad. In 1998 he was given
control of the CIS/Eastern European market, based in Moscow, till the
acquisition in 2000 of Stinol, Russia's biggest refrigerator manufacturer.
Returning to Italy, he took over as chief operating officer and in March
2002 was appointed CEO at Merloni Elettrodomestici UK, the company formed
as a result of the GDA Hotpoint acquisition.
In that role Marco Milani engineered the integration, in a record 18 months,
of the most important acquisition the company has ever made (6,000 employees,
four production facilities, and a share of nearly 30% of Europe's biggest
household appliance market).
Whirlpool
Corporation Reports Record Second-Quarter Revenue; Strong Growth Fuels
Improved Earnings
Whirlpool
Corporation has announced second-quarter financial results, highlighted
by record second-quarter revenue and a 13% increase in earnings per share.
Second-quarter 2004 net earnings were $106m, or $1.53 per diluted share,
compared to $94m, or $1.35 per diluted share, in the same period last
year. Second-quarter net sales of $3.26bn increased 9.2% from the same
period last year. Excluding currency translations, net sales increased
approximately 8 percent.
'Our second-quarter results reflect the continuing strong momentum in
our North American and European businesses, and improving conditions in
Latin America,' said Jeff Fettig, Whirlpool’s chairman, president
and chief executive officer. 'Demand has been strong in all markets, but
rising material costs, material availability and transportation constraints
have made this a challenging operating environment. Our global operations
effectively managed these issues during the quarter, which led to our
strong performance.'
For the first half of 2004, sales of $6.27bn increased 9.9% from the prior-year
period. Excluding currency translations, year-to-date sales increased
approximately 7 percent. Year-to-date earnings of $2.96 per diluted share
improved 10.9 percent from the first half of 2003.
Second-Quarter Highlights
* Sales and unit shipments were second-quarter records for the company.
Net earnings of $1.53 per diluted share increased 13 percent from the
prior-year period.
* Free cash flow improved $125 million compared to the prior-year period.
* Whirlpool Corporation’s Board of Directors authorised a new share
repurchase programme of up to $500 million.
* The company announced plans to invest approximately $180 million in
its North America operations for the continued development and introduction
of innovative products. Approximately $100 million of the investment will
fund initiatives at seven manufacturing facilities in the United States. Approximately
$80 million will fund activities in Mexico to expand the company’s
washer production facility in Monterrey and construct a new refrigeration
facility in Ramos Arizpe.
* The company also announced a 100 million Euro investment in its manufacturing
site located in Wroclaw, Poland. The investment will fund a new cooking
manufacturing capability and expand the company's existing refrigeration
and dishwasher production lines.
* During the quarter, Whirlpool continued to deliver innovative products
to customers worldwide. Major new introductions were:
• a new refrigerator series under the Kenmore brand that provides
consumers with America’s best ice and water system—bottled water
at a fraction of the price;
• a number of Whirlpool brand innovations, including a new line of
home water filtration and water softening products in the U.S., a premium
built-in Twin™ microwave in Europe and the new Ice Magic®
frost-free refrigerator with 6th Sense™ control technology in Asia;
• and a new refrigerator with in-door water dispensing and no-frost
technology under the company’s Consul brand in Brazil.
Whirlpool Europe’s sales of $704 million increased 12.1 percent from
the prior-year period. Excluding currency translations, sales increased
approximately 6 percent. Within a mixed economic environment where appliance
demand improved moderately, Whirlpool Europe outperformed the industry
with record sales and unit shipments, and enhanced the Whirlpool brand’s
market leading position.
Operating profit increased 52 percent, driven in part by the growing demand
for the company’s innovative products, including new built-in kitchen
appliances and side-by-side refrigerators. Record levels of productivity
also contributed to the profit improvement. During the quarter, the company
announced a region-wide price increase in response to rising raw material
costs.
Second-quarter industry unit shipments increased 3 percent from the prior-year
period. Based on current economic conditions, the company expects full-year
industry shipments to increase approximately 2-to-3 percent.
Outlook
'We continue to expect to deliver a record year of revenues and full-year
earnings in the range of $6.20 to $6.35 per share for 2004,' said Fettig.
'The expected performance is based on the strong demand for our global
innovative products and brands, and our second-half outlook for key markets
around the world. The guidance incorporates the external challenges
of raw material costs, material supply availability and transportation
constraints, as well as the planned investments in the company’s
global operating platform. Our operations are positioned to successfully
manage these issues and deliver a record year of performance.'
In-toto has opened two new kitchen showrooms this summer. Ken Stanton is the franchisee at In-toto, 34 High Street, Maidstone and Richard Lakeman has taken the franchise for In-toto at 23 Peach Street, Wokingham. Both showrooms demonstrate many modern options that combine to make today's kitchen a place to enjoy. These include labour and energy saving appliances, clever storage ideas and altemative worktop materials.
Richard
and Mandy Lakeman of Wokingham's In-toto
Both
showrooms are well located, being on prime high street sites. Finding
such premises is not easy but In-toto's property service is proving very
effective, giving franchisees a trading advantage from the start. Ken
and Richard benefited from the professional training given by In-toto
prior to opening, developing business, design, product, administration
and retailing skills.
In-toto is looking for franchisees to open in other locations throughout
England, Scotland and Wales.
Contact: John Kinder
Tel: 01924 487900
Web: http://www.intotofranchise.com
A
Greener Waste Management Process
In-Sink-Erator
is predicting a boom time for environmentally friendly waste disposal
options as councils up and down the country introduce compulsory recycling
schemes.
The food waste disposer manufacturer believes that composting, wormeries,
and the use of food waste disposers will become more and more popular
as people are being encouraged to deal with their waste more responsibly.
Barnet Council was one of the first to introduce a compulsory recycling
scheme to help tackle the growing waste mountain. And if Britain is to
meet EU waste management targets it is thought that other authorities
may follow suit.
Ashley Munden, sales and marketing director of In-Sink-Erator, said:
‘We’ve recorded a 20 per cent rise in sales on this time last
year, and we believe it’s due in significant part to the government
cracking down on the way we manage our waste.
‘Our latest research also shows that while only six per cent of us
have a food waste disposer, the demand for installing one is far greater,
with one in six of us wanting one.’
Kitchen food scraps, which account for as much as 25 per cent of household
waste, can be flushed down a disposer, helping to reduce rubbish going
to landfill as well as removing smelly food waste from your bin.
And because of the move towards waste separation schemes, people are now
recognising that food waste disposers deal with messy food waste conveniently
and hygienically.
Tel: 0800 389 3715
Bathing
in an Eggshell Wins KBSA Design Award
The
KBSA award for the kitchen bathroom or bedroom has been won by a graduate
from Derby University who designed a stunning egg shell shower for this
year’s New Designers awards.
Twenty-one
year old Hannah Whiting (pictured) was one of 4,000 graduates who entered
this year’s awards, which where held at The Business Design Centre
in London.
Her winning design, called ‘alta EGO’, offers a showering experience
with a difference. The eggshell shaped pod can comfortably hold two people
and an individual showering experience can then be selected. A touch control
screen allows the type of water spray and flow to be adjusted as well
as the lighting to create different moods.
‘I have always been interested in bathrooms,’ says Hannah. ‘I
wanted to create something really different and the ‘alta EGO’
creates a strong focal point to any room and is almost a sculpture as
well as a very sophisticated shower.’
KBSA Chief Executive Graham Hayden, Essential Kitchen, Bathroom, Bedroom
magazine editor Gail Major and The Kitchen Designer magazine editor Grahame
Morrison, were the judges of this year’s award.
‘Hannah’s design is very exciting and innovative, she has researched
the market well and produced a design that will meet the aspirational
needs of today’s new bathroom purchases,’ says Gail Major.
‘The New Designers award scheme serves as an invaluable link between
the best graduate designers in the country and industry professionals,’
says Graham Hayden.
‘The KBSA was delighted to sponsor this award for the third year
running. We are totally committed to supporting the design education process
and feel this award scheme provides young, talented designers with a much-needed
national showcase.’
Hannah received a cash award of £1,000 and will have the opportunity
to present her design to relevant bathroom manufacturers who are KBSA
members.
Runner up awards were awarded to Katy Buchan who designed a multi purpose
sink unit and Damian Clarke who designed a courtesy/temporary kitchen
that could be utilised when a new kitchen is being fitted.
Roman
Spreads its Wings with Dedicated Export Department
Roman
Ltd. has set up a dedicated Export Department to develop overseas sales.
Initially two specialists will cater for demand from as far away as New
Zealand, North America, South America, Middle East, Far East and all major
European Economies.
Damien Jones, new Export Manager, has a brief to co-ordinate an effective
response to overseas enquiries, to handle Roman's previous overseas contracts,
and to identify potential business partners worldwide.
Prior to this appointment, Damien was an Area Development Manager, with
responsibility for South-east England and East Anglia, having joined the
company three years ago from the world of builders' merchants.
Damien is supported by Export Executive Renata Harding, who is Brazilian
by birth and speaks Spanish, Italian, and Portuguese.
Renate
Harding, Export Executive (left) and Damien Jones, Export Manager set
their sights on developing Roman's overseas sales.
Roman
Marketing Director David Osborne said: 'From our previous overseas work,
we have found that the demand is the same all the world over - for innovative,
stylish yet robust units, which can be fitted simply, and will do their
job for years and years.
'To date, we have concentrated our overseas effort primarily on high-value
one-off contracts, but now Damien and Renata have the time and resources
to truly compete internationally and spend time developing contacts in
the key bathroom market around the world for luxury showering products.'
Damien is optimistic that Roman's business models can be replicated overseas.
He said: 'We have never sold in the UK purely on price and we certainly
won't be the cheapest in other parts of the world, where manufacturing
costs are often lower and exchange rates can be unfavourable. What we
do offer are carefully considered ranges of high-quality products that
have been developed over nearly 20 years. If we can increase international
recognition of the quality, values and service associated with the Roman
brand, there are some excellent business opportunities out there for us.'
Tel: 0845 0504 032
Web: http://www.roman-showers.com
SEB
Group Provisional First-Half Sales Show Return to Growth in Second Quarter
SEB
Group reports that first-half 2004 was marked by contrasting trends. After
a challenging first quarter, especially compared with the strong growth
in early 2003, sales generally improved in the second quarter, increasing
slightly over the prior-year period. However, the economy remained sluggish
in certain developed countries, but growth continued in the emerging markets.
The second quarter in particular saw a turnaround in sales, which began
to recover after four straight quarters of decline.
Although the currency effect was weaker, it remained unfavourable, primarily
due to the dollar.
In
France, the decline in business reflected large-scale inventory drawdowns
by retailers early in the year, generally weak consumer spending and further
growth in sales of entry-level products. Nonetheless, the Group reported
a very good performance with the Aquaspeed iron, the Ingenio, Thermospot
and Jamie Oliver cookware ranges, and in fans. The new R2 bagless vacuum
cleaner was also successfully launched.
In the other EU countries, business stabilised somewhat in Germany in
the second quarter and slowed in Italy. However, sales were up significantly
and market share is increasing in the United Kingdom, Spain and Portugal.
In the Scandinavian countries, the Group is beginning to reap the benefits
of past initiatives and reported a strong performance for the period.
In North America, sales remained very good in Canada and satisfactory
in Mexico, despite the still somewhat fragile environment. In the United
States, sales declined as a result of the continued commodisation of non-stick
kitchen and the unavailability of the new Krups products, which will be
introduced as planned in September. However, Rowenta irons consolidated
their position in the high-end segment, this highly promising premium
segment will be strengthened in the cookware business by the acquisition
of All-Clad.
In most of South America, with the exception of Colombia, the general
improvement in the economic environment and a recovery in demand are driving
renewed growth in sales, further boosted by the launch of a number of
new products with strong marketing and advertising support.
In the rest of the world, growth was buoyed by a number of factors, including
fast-growing consumer spending in the CIS, especially outside major cities,
the solid recovery in Turkey, underpinned by the broader offering and
strong breakthroughs in certain product families, advances in the Australian
market, the contribution of the new Thai subsidiary and continued development
in South Korea.