Kitchen and Bathroom News @ The K&BZine

Glen Dimplex has acquired Lec in a strategic move to enter the freestanding refrigeration market.

The acquisition will increase the company’s brand portfolio, which includes specialist cooking names Stoves, Belling and New World, and enable Glen Dimplex Home Appliances to strengthen its total appliance offer.

Wendy, Glen Dimplex's Home Economics guru, putting the new Stoves Genus through its paces in front of a 250 strong audience of dealers and journalists at the London Savoy yesterday

Sean O’Driscoll, Group Chief Executive of Glen Dimplex, said:

'Changing the name of the company from Glen Dimplex Cooking to Glen Dimplex Home Appliances in January 2005 was a considered move on our part to allow the business to expand organically into new areas.

'When we acquired Belling in 1992 and Stoves back in 2001, both were in need of reinvigoration and we saw it as our mission to turn these brands around. Now, 1 in every 4 homes in the UK has a Glen Dimplex cooking appliance and the company has fast become the market leader. Lec is a fantastic British brand with a longstanding relationship with UK consumers and our aim is simply to achieve the same kind of success for this brand, as we have for Stoves, Belling and New World.

'We are asking our customers to trust us for a third time as we begin an intensive programme to revitalise one of the best known names within the refrigeration market. Having delivered on the previous two occasions, the plan is to deliver once again.

'Lec has a strong brand proposition due to its product quality and service, so our immediate plan is to focus on innovation across the product portfolio'.

Masco: Sales up 14% for 2004, Profit Margins Down 1%

Masco Corporation reports that net sales from continuing operations for the year ended December 31, 2004 increased 14 percent, primarily from organic growth, to a record $12.1 billion compared with $10.6 billion for 2003.
Income from continuing operations for the year ended December 31, 2004 was $1,071 million or $2.35 per common share, excluding the impact of a goodwill impairment charge pertaining to certain European operations. Including the impact of this non-cash, after-tax goodwill impairment charge of $141 million, earnings from continuing operations were $930 million or $2.04 per common share.

Gross margins were 30.8 percent in 2004 compared with 30.7 percent in 2003. Operating profit margins as reported were 13.0 percent in 2004 compared with 14.0 percent in 2003. Excluding non-cash, pre-tax goodwill impairment charges of $168 million in 2004 and $53 million in 2003, income related to the Behr litigation of $30 million in 2004 and $72 million in 2003, accelerated benefit expense of $16 million in 2003 and the European charges of $54 million in 2003, operating profit margins were 14.1 percent in 2004 compared with 14.5 percent in 2003.

Highlights:
- Net sales from continuing operations increased 14 percent to a record $12.1 billion.
- Income from continuing operations was $2.35 per common share excluding the impact of a goodwill impairment charge and $2.04 per common share including the impairment charge.
- Free cash flow before dividends exceeded $1.1 billion.
- The Company returned $1.2 billion to shareholders through share repurchases (31 million shares) and dividends.
- The quarterly dividend was increased by 12.5 percent, the 46th consecutive year in which dividends have been increased.
- The Company had $1.5 billion of cash and marketable securities at year-end.Results for the year ended December 31, 2004 benefited from strong organic sales growth partially offset by increases in commodity costs which were not recovered due to the delay in implementing selling price increases to customers, costs associated with the Sarbanes-Oxley Legislation and increased energy and freight costs.

In addition, 2004 benefited from net gains related to the liquidation of a portion of the Company's financial investments and from income related to the Behr litigation.

Fourth quarter of 2004 net sales from continuing operations increased 10 percent to over $3.0 billion compared with $2.8 billion in the 2003 fourth quarter. Income from continuing operations for the fourth quarter of 2004 was $247 million or $.55 per common share, excluding the non-cash, after-tax goodwill impairment charge of $141 million. Including such charge, income from continuing operations was $106 million or $.23 per common share.

Results for the fourth quarter of 2004 benefited from pre-tax gains from the sale of financial investments of $40 million or $.06 per common share after tax partially offset by a pre-tax impairment charge of $21 million or $.03 per common share after tax related to the Company's investment in Furniture Brands International common stock. Results also benefited from a reduction in the Company's tax rate related to the utilization of foreign tax credits generated in the fourth quarter on distributions of foreign earnings which benefited earnings by $.02 per common share.

The Company previously announced, in the first quarter of 2004, the planned disposition of several European businesses that are not core to the Company's long-term growth strategy. During the fourth quarter of 2004, the Company completed the additional sale of three of these businesses: Alma Kuchen, E. Missel and SKS Group.

Including discontinued operations, net income for the 2004 fourth quarter increased to $246 million compared with $205 million for the 2003 fourth quarter, and earnings increased to $.55 per common share compared with $.43 per common share for the fourth quarter of 2003, excluding non-cash, after-tax goodwill impairment charges of $141 million and $113 million in 2004 and 2003, respectively. Including discontinued operations and the goodwill impairment charges, net income for the 2004 fourth quarter increased to $105 million compared with $92 million for the 2003 fourth quarter, and earnings increased to $.23 per common share compared with $.19 per common share for the fourth quarter of 2003.

The Company believes, based on current business trends, that it will achieve record sales and earnings for 2005 with full-year earnings from continuing operations in a range of $2.40 to $2.50 per common share. The Company anticipates that first quarter 2005 earnings from continuing operations (seasonally the lowest quarter of the year) are expected to be in a range of $.44 to $.47 per common share, compared with first quarter 2004 earnings from continuing operations of $.52 per common share, which included $.03 per common share of income related to the Behr litigation and $.07 per common share of previously disclosed other income, principally net gains from the sale of financial investments. The Company's guidance reflects recent additional increases in commodity costs which the Company believes will not be offset with selling price increases until later in 2005.

Ideo Bain Moves to new January Slot

Reed Expositions France has changed the dates for Interclima + elec home&building and Idéo Bain, which will be held at Paris Expo Porte de Versailles.
- Interclima + elec home&building, the smart building technology week, will take place from 17th to 20th January 2006.
- Idéo Bain, the bathroom show, will be held from 17th to 22nd January 2006. (It will be open to the general public for the final three days).
These replace the previous dates :
- Interclima + elec home&building from Tuesday 17th to Friday 20th January 2006.
- Idéo Bain from Tuesday 17th to Sunday 22nd January 2006.

These new dates have been proposed to us by the Paris Expo Porte de Versailles Exhibition Centre now that the Salons de la Mode have finally agreed to the dates of 2nd to 5th February, instead of 20th to 23rd January 2006.

These dates offer two major advantages:
- For Idéo Bain, it means that a show open to the general public is not taking place during school holidays, which in 2006 begin on 4th February in the Paris region.
- For both shows, it means that the dates are further apart from those of Mostra Convegno, which opens on 28th February 2006.
Sales of space for the shows are proceeding according to target, with bookings currently standing at:
- over 50% of the available space at Interclima+elec home&building,
- nearly 60% of the available space at Idéo Bain.Idéo Bain
Mariette Landon et Associés
Christine Mazelle
79, rue du Faubourg Poissonière 75009 Paris
Tel :01 53 24 99 19 - Fax : 01 53 24 99 25
Email : mla@wanadoo.fr

Sanitec Co-operates with Ceramics Producers in China

Sanitec Corporation has signed a Letter of Intent with the Taiwanese HoCheng, one of the biggest ceramics producers in the area. The agreement comprises project management and technical support to the construction of an acrylic bathtubs production plant, to be located nearby Shanghai. The construction of the plant is scheduled to start in 2005 and it is planned to be operative by 2006.

Sanitec and HoCheng have maintained a successful co-operation in the areas of ceramics production as well as cross sales already for a couple of years.

'Deepening our partnership with HoCheng constitutes a step forward in the expansion of our activities outside Europe. Until now Sanitec has been present in China with our Keramag and Ido brands, mainly with bathroom ceramics, and a representative sales office in Shanghai", says Mats Bergdahl, Corporate Vice President, External Sourcing, CA&E division.

Sanitec is a European multi-brand group that designs, manufactures and markets bathroom ceramics and bath and shower products. The Group is based around locally well known brands, which have strong positions and deep roots in the bathroom business, and is well positioned as a leading European provider for bathroom solutions.

In 2003, Sanitec's net sales amounted EUR 951.1 million. The Group employs around 7,100 people, mainly in Europe. The 28 production plants are mainly located in Europe whereas the sales and marketing network operates world-wide.

http://www.sanitec.com

SEB Acquires Lagostina

Groupe SEB confirms that it has entered into negotiations, on an exclusive basis for two months, with a view to acquiring a majority interest in Italian company Lagostina. Due diligence is underway to determine the final offer and the exact terms of the acquisition.

Lagostina is the leading Italian producer of premium stainless-steel pots, frying pans, pressure cookers and other cookware, distributed through a diversified network of specialty retailers. In the high-end segment, the company is also market leader in France, Canada, the Benelux countries and Taiwan. In 2004, it reported some €60 million in revenues, of which around 30% were generated in export markets. Production is concentrated at a single, highly automated plant in Omegna, Italy, although certain products have been partially outsourced.
The proposed acquisition of Lagostina is aligned with Groupe SEB’s strategic vision, and would enable it to continue the process of expanding in the premium cookware segment that was initiated in 2004 with the acquisition of All-Clad in the United States.

Mark Wilkinson is PWS’ Expert Witness

PWS has successfully concluded legal action against Collier Kitchens, Montreux International and Frederick Collier in the Republic of Ireland in defence of its rights of the Croft Oak design. The action was brought to defend PWS’ unregistered design rights under European Community Law. Following a two day trial at the Commercial Court in Dublin on 14th and 15th December, in which Mark Wilkinson attended as an independent expert witness for PWS, a settlement was agreed and the defendants were ordered to stop selling their Calais door range. The court order required payment of damages to PWS within three weeks, as well payment of PWS’ costs.

In his statement Mark Wilkinson said, I have been asked to provide evidence as an expert in the kitchen furniture industry and am completely independent of any parties in this case’. Mr Wilkinson added, ‘Having examined the case in great depth and by conducting research, I was always confident that PWS had a strong case’.

In this case there is a common link between Collier Kitchens, Montreux International and Doors & More operating in Northern Ireland, as Fred Collier is a Director of all three businesses. PWS obtained a court order on 21st October 2003 as part of an overall settlement preventing Doors & More selling the Croft Oak lookalike in the North and also awarding damages and costs. As a consequence of this earlier action against Doors & More, PWS issued proceedings against Fred Collier personally in this latest infringement court case.

Comments John Lennon, Marketing and Sales Director at PWS, ‘We invest heavily in our product development process and are committed to bringing fresh and innovative product to the market. Whilst we welcome competition on equal terms, we are not prepared to sit back and watch anyone piggyback on our efforts with copycat products.

Previous legal action against Doors & More and J&J Ormerod, and our latest success in Ireland should send a clear message to the market that PWS will vigorously defend its intellectual property rights wherever infringement has occurred’. Mr Lennon continues, ‘ Mark Wilkinson is renowned in the kitchen industry and held in high esteem for his design expertise and knowledge of kitchen furniture and we could not have wished for a more knowledgeable and respected independent witness. His credentials are second to none, not only is he a Fellow of the Chartered Society of Designers and a member of the Worshipful Company of Furniture Makers, but he has recently received a lifetime achievement award from industry peers for his services to the kitchen furniture industry’.

Mark Wilkinson Furniture is a key member of ACID (Anti Copying in Design), the membership trade organisation, created to combat the growing threats of plagiarism in the design and creative industries.

PWS is advising its customers and others to be careful in any dealings in copies of doors and other products which are made to the Croft Oak design since they risk infringing PWS’ rights.

A number of doors and feature products in the PWS portfolio carry UK and EU wide design rights across both classic and contemporary styling. They include the rustic Eden door family and the curved feature doors and components in a selection of modern door collections.

William Ball's Commitment to Customers

At a series of seminars held recently at William Ball’s headquarters in Grays, Essex and Haydock, Merseyside, the company presented its plans for the future to its core customer base. In total over 200 customers turned up and were treated to a day of events.

They were encouraged to meet the staff and to view the new products in the extensive on-site showroom as well as attend a formal presentation of William Ball’s future plans.

The presentation, presided over by Joint Managing Directors Bob Ball and Terry Ball, was a means to introduce William Ball’s plans to open William Ball Authorised Centres around the country.

In exchange for customers providing a commitment to William Ball as an Authorised Centre, William Ball presented an enticing package of incentives. To qualify as an Authorised Centre among the criteria it was stipulated that the kitchen showroom must be a displaying William Ball products which would include a full set of sample doors. They would sell only complete or assembled products and they would promote William Ball products in preference to others. Other stipulations on offering a professional design, quote and installation service were also laid out.

In return William Ball Authorised Centres would receive special display terms set on a sliding scale dependent on the number of displays in store. Product support allowances for samples and brochures would also be provided along with a retrospective credit on all purchases in excess of a set yearly target. What’s more they would receive a guaranteed exclusivity in their area and back up with marketing support and point of sale items.

Explaining the rationale for this key development, Joint Managing Director Terry Ball says: 'As we have consistently built the William Ball brand in recent years, our aim is to build on that foundation in partnership with some key retail partners around the country in which we will offer a firm commitment in terms of a Authorised Centre initiatives. In return we would expect to see a commitment from our customers which will ultimately result in profitable business for them and, of course, William Ball. Our aim is to open 300 William Ball Centres around the country over the next two years.'

To celebrate both its 25th anniversary in the UK and Ireland together with the launch of its expanded new range, De Dietrich is running a heavyweight press advertising campaign and - for the first time - using national newspaper weekend supplements as well as its traditional schedule of quality home interest magazines.

Using research conducted by its Media Planning Agency, Interaction Media, it is targeting the quality AB audience with high disposable incomes that can be generated from advertising in weekend supplements, which often feature food and cooking within their editorials. This campaign will go hand in hand with monthly magazines aimed at those who are looking to purchase quality kitchen appliances.

The theme for the creative is 'AT DE DIETRICH, ALL OF OUR RANGE...IS TOP OF THE RANGE' which embodies the ethos of 2005 built - in appliance range. The aim of the campaign is to make the De Dietrich quality available to a wider audience by emphasising the fact that all ovens in the range, pyrolytic and non pyrolytic are built to the highest specifications. They offer many features that would normally be associated with top of the range models only. An expanded range of gas hobs, hoods and refrigeration products are available along with upgraded dishwashers and laundry products.

Creative executions will appear in the Times Magazine, Guardian Weekend, Sunday Telegraph Magazine and the Observer Food Monthly along with Good Housekeeping, Waitrose, House and Garden, Homes and Gardens, Country Living, 25 Beautiful Kitchens, 25 Beautiful Homes and Period House. A series of advertorials will appear in the Independent Magazine and Period House as well.

De Dietrich sales order processing (trade only): 01256 308 067 or e-mail: mailto:builtinsales@elcobrandt.com
Web: http://www.dedietrich.co.uk

For the movement of fragile or awkward bathroom and kitchen goods, such as worktops, shower enclosures and profiles, you need someone who’ll ‘handle with care’. The services offered by logistics management company, Caretakers, have been extended to encompass the full range of warehousing facilities, including pick & pack.

Caretakers, which specialises in the movement of fragile and awkward goods, is able to offer its extended services as a result of its expansion into new warehouse premises at its Doncaster depot. The new premises offer 5000 square metres of storage space, which is fitted out with purpose-built racking to suit th requirements of individual customers. To aid the speed and accuracy of its pick & pack service, Caretakers employs the latest bar-coding technology in its stock control processes.

One of the companies taking advantage of Caretakers' pick & pack service is bathroom products distributor, Norske Interiors. On behalf of Norske, Caretakers stores a comprehensive stock of wall panels, which are drawn off as required and distributed to Norske's nationwide network of retailers. In addition, purpose-made racking has been built to stock the large range of profiles which complement Norske's wall panels.

Caretakers' expertise in handling fragile and awkward goods was the primary reason for its appointment by Norske Interiors. The company's experience in the movement of fragile and awkward goods has been built up through the handling of such diverse products as mirrors, glass furniture and shower enclosures.

Tel: 01472 266606
Email: mailto:caretakers@thbrown.co.uk

There are not many companies in the woodworking and furniture manufacturing sectors who are not aware of the Hoffmann system for creating secure, accurate and permanent joints using their unique dovetail keys. Indeed a large proportion of bespoke kitchen workshops up and down the country now use this system for creating in-frame face frames or mortice joints on angles.

Perhaps what is less commonly understood are the diversity of applications to which the system can be applied. It's versatility in conjunction with the huge variety of application machinery that is available from Hoffmann, make the system applicable to almost any woodworking situation. Over the past few years a number of companies using the Hoffmann system illustrate this point:

A specialist company in Rye, East Sussex is constructing exquisite, traditional roof lanterns using the Hoffmann system to construct the water-tight sills. Joinery specialists like Briman make window cassettes using the Hoffmann system while interior furniture specialists John Sinclair use the Hoffmann keys throughout their workshops when creating anything from home offices, home cinema fit-outs as well as kitchens, bedrooms and bathrooms.

Many kitchen manufacturers like Royal Warrant Holders Stoneham Plc of Kent and Somerset's Chalon not only use the system for face frames but to construct the ever more popular lines in matching joinery to carry the design into other rooms - architraves, door frames, pelmets and skirtings.

Major joinery producers like Jeld-Wen are routinely using the Hoffmann system in volume production of architraves and the like by employing one of Hoffmann's more sophisticated combination machines with double mitre cutting and routing all in a single cycle.

Artist are using it for frame construction and Ashford Joinery found it the ideal system to construct an unusual commission of wood block abstracts for a number of London hotel chains.

Also in Kent, Malthouse joinery has found a unique application in the construction of glass and mirror wardrobe door frames which can be assembled on site and dis-assembled in the event of replacing broken centre panels.

Many companies are using it for creating lattice work with an overlap joint and Hoffmann also manufacture a portable, hand-held keyway router for on-site applications.

In Coventry the King Henry VIII School is using it in a diverse and highly successful way in their Design & Technology Department and specialist company William Garvey has found it ideal in the construction of their unique and premium quality solid teak baths. In the historic dockyards in Chatham, Hutchfield joinery are employing the very smallest of the Hoffmann keys to construct delicate and beautiful display frames for some of London's most famous jewellery retails houses. The list goes on.....

In Germany the Hoffmann system has been used in some major construction projects and, of course, there are many applications for window frame construction, fire-door apertures, conservatories and the like.

Tel: 015424 662500
Web: http://www.hoffmann-uk.com

Bauformat has just announced a 'Triple Whammy' of Spring promotions helping Bauformat dealers to maximise on sales. These are:

•Extra 15% discount on their new Oak Shaker Range 670
•Extra 7.5% discount on ALL of their Range 470 style fronts
•Extra 10% on Any other 5 Ranges of the Dealers choice with the '5 Star Promotion'

The 5 Star promotion will run until the 30th June 2005 while the other two promotions will run until September 2005.

Web: http://www.bauformat.co.uk

Appliance manufacturers have told the boss of the Energy Savings Trust that the multi-million pound campaign promoting energy efficient products will only cause frustration to the customers of several thousand independent retailers.

‘If a consumer tries to find domestic appliances covered by the scheme, she will depart disappointed,’ says AMDEA Director General Peter Carver in a letter to EST Chief Executive Philip Sellwood.

"The rules of the scheme are structured so as to impose on retailers complex auditing and reporting arrangements which are beyond the resources of these small businesses.

‘It means a significant percentage of the retail market in this country is effectively excluded from EEC - and it is often the independents who stock the better quality, most energy efficient product,’ he adds.

AMDEA says the rules of the scheme have two anti-competitive effects. They discriminate against the independents - who are largely SMEs - in favour of large plcs. They also discriminate against suppliers whose products are not sold by the retailers which the energy suppliers favour.

Mr Carver tells Mr Sellwood that manufacturers have raised the issue in meetings in the EST, who have made representations to Ofgem and Defra, who set the rules.

‘But there is no sign that anything is being done,’ he says.
'We believe EST should raise the profile of this issue, and I invite you now to take some initiatives to ensure the rules are changed and to prevent the market being distorted.’

Email: mailto:peter.carver@amdea.org.uk

When the name of the company is ‘Polished With Pride’ it tells you something about its obsession with finish and confidence in its reputation.

The Wigan-based company has grown steadily over the last 18 years manufacturing quality facia products for the kitchen and bedroom markets primarily.

All products - from doors, drawerfronts, special units like wine rack fascias and various others - are made to customer order using MDF as the substrate and painted to an exceptional finish on which the success has been established.

Traditionally, the entire finishing process - from pre-sanding of the routed. profiled and shaped panels to denibbing and final polishing - has been carried out manually. While this has always been laborious, time consuming and not entirely consistent in first-time results, Polished With Pride have shied away from automating the process as they have never been able to find a satisfactory system or machine to invest in. That was until Abacon's Martin Davis introduced them to the Löwer DiscMaster and SlipCon abrasive brush systems.

Polished With Pride's General Manager John McConnachie describes the DiscMaster as ‘exceptional’ and puts the investment into context: ‘We have made some effort to evaluate this machine and have confirmed that our reduction in sanding staff is 50% while increase in product throughput using the DiscMaster is at least up by 33%. This means that where between 50 - 80 doors, for example, used to take between 8 - 10 people 3 hours to sand, the same job is achieved with superb results on the DiscMaster in 20 minutes. Also, because we operate such a rigorous quality control scheme we have noticed that our items retuned for 're-working' have dropped by 80%.’

The Löwer DiscMaster along with a Löwer TopSpin machine for edge finishing were delivered and installed by Abacon following last year's Woodmex exhibition. Apart from the TopSpin machine, Abacon also suggested and supplied an Abacon Multi-Sander single head machine for edge finishing of shorter components while production of the larger batches was taking place. The portability and versatility of this compact machine was part of the entire strategic finishing package devised by Abacon. Based on the evaluations in performance and cost reductions made by Polish With Pride, John McConnachie says that the investment will have been recouped within 6 months.

The DiscMaster is one of Löwer’s more recent innovations and features a combination of both sanding discs and sanding rollers equipped with brush-backed abrasive strips slotted into special SlipCon hubs.

The rollers and discs are applied to the workpiece as it moves under them on a powered feed belt and the discs actually oscillate across the face of the workpiece to ensure complete contact coverage with the workpiece. Finishing of painted MDF components is notoriously difficult but the DiscMaster machine as an 'applicator' along with the SlipCon heads is able to achieve this as never before. Using this process the effect on sharp edges is to ‘soften’ them rather than damage them as can often happen when using the more conventional giro ‘flapper’ type machines. It will also access very deep moulds.

John McConnachie says that the versatility and the ability to interchange strip shapes, lengths and brush backings means that they have been able to experiment their way to an optimum solution.

The components at Polished With Pride are being pre-sanded on the machine, put through again after a sealing coat is applied and once more after the second prime coat is applied.

Tests have shown that the uniformity created on the component surface creates ideal conditions for the final application of paint or lacquer.

The machine is a throughfeed design with a fixed feed height and speed of 3 – 15m/min for components up to 1350mm wide and up to 120mm high. The disc station swing easily out of the side of the machine for rapid changing and the closed construction makes for efficient extraction and a clean environment for a superb finish.

Various roller/disc configurations are available as are a number of technical additional options like a vacuum system for small workpieces, motorised rise and fall of the discs, electronic displays, blowing and antistatic devices and a PLC control including memory for setting recalls.

Abacon says that for furniture components like profiled panels and complex frames the DiscMaster is the most complete solution available. As Abacon has also been able to demonstrate, companies who have held back for long periods of time from automating this part of their finishing process because of prohibitive machinery costs now have a much more affordable option which can demonstrate realistic payback performance.

Further details can be obtained from the Löwer website which links to Abacon on: http://www.loewer-maschinen.de as well as the Löwer brochure from Abacon.

Tel: 0114 2562266