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BSH Opens Two New Production Plants in the USA

Following the start of construction in February 2002 and investments totaling around $200m for the expansion of the local facility, US-specific home appliances bearing the Bosch and Siemens brands have now started to roll off the production line in New Bern, North Carolina.

On March 9th BSH Bosch und Siemens Hausgeräte GmbH opened two new production plants in New Bern in the State of North Carolina, after a construction period of 18 months. Representatives of the local authority and of the German Embassy in the USA attended the official opening.

In addition to the existing production of dishwashers and built-in ovens under the Bosch and Thermador brands, the two newly constructed plants will manufacture washing machines, dryers and free-standing cooking ranges, specifically developed for the American market.

The BSH Home Appliances Corporation, headquartered in Huntington Beach, California, distributes the Bosch, Siemens and Gaggenau brands, as well as the American Thermador brand, which was acquired in 1998.

The expansion of its New Bern facility, which represents BSH's largest investment ever made outside Germany, is proof that the company is serious about expanding into the North American market with products 'made in USA for USA'.

Aga Foodservice Reports £35.9m Pre Tax Profit for 2003

Aga Foodservice Group PLC, the manufacturer of cookers, reported satisfactory trading at the start of 2004, with UK consumer activities strong and the US improving slowly. However, the group warned markets across its foodservice activities remain mixed. It reported a pretax profit before goodwill of £35.9m, up from £34.1m the previous year. Sales grew by 18.8% to £392.4m, up from £330.3m the previous year.

'We have made a sound start to the new financial year after a satisfactory performance in 2003. The focus in 2003 on product development and on the retail infrastructure is proving its worth,' said Chief Executive William McGrath.

He added that the current year has started satisfactorily, particularly for consumer activities in the UK.

'We are starting to see more opportunities for those businesses that had a challenging 2003, like Domain in the US and our European foodservice operations which should lead to an improved performance later this year. We can therefore
expect to see further growth achieved in 2004,' he said.

During 2003, the group achieved its target of annual sales of 10,000 Aga branded cookers - up from under 8,000 in 2001 - was a landmark for the group.

In 2004, it plans 'to build on its strength in the UK in consumer and foodservice markets to become a strong force in North America and on the Continent'.

Earnings per share before goodwill amortisation were 23.3 pence, up from 20.7 pence.

The group is paying a total dividend of 7.2 pence, up 20 pct.

Fisher & Paykel Announces Forecast Profit Upgrade

The Directors of Fisher & Paykel Appliances Holdings Ltd have upgraded the Company's forecast result for the year ending 31st March 2004 to between $80m and $85m after taxation. Previous guidance on the result had been for a similar performance to that of the $73.5m last year.

Mr Gary Paykel, Executive Chairman, said, 'The Appliances business has continued to perform solidly on the back of increased sales volumes. The recently purchased Farmers Finance business is also performing above initial expectations'. The Farmers Finance activity of Fisher & Paykel Finance is on target to contribute earnings before acquisition interest costs and tax of $9m to $10 m in the five months following the purchase. Mr Alastair Macfarlane, Managing Director of Fisher & Paykel Finance, said, 'The Farmers Finance sector of our business is performing well and profitability will be further enhanced after the business is fully integrated with our existing Finance operations'. Following integration, the business is projecting to realise cost savings, from synergies in operations, in excess of:1$3 million per annum. These savings will be partially reflected in the 2004-05 financial year. The integration of the two companies is proceeding as planned.

Sales of appliances are expected to exceed 1.15 million units in the current financial year, an increase of approximately 15% on last year. Mr John Bongard, Managing Director of Fisher & Paykel Appliances Ltd said, 'Sales in New Zealand and Australia have exceeded expectations and progress in the USA has continued strongly, providing good opportunities for growth. Our entire manufacturing system has responded well to increased production
requirements. Capital expenditure is expected to be in line with forecast at $40 million to $45 million for the current financial year.'

The Company will be announcing its result for the year ended 31st March 2004 on 20th May.

Wolseley Announces 22% Increase in Pre Tax Profit for First Half

Wolseley announces another set of record first half results, the eighth consecutive year of improvement, despite challenging business conditions in a number of markets. These results reflect strong organic growth and the additional contribution from acquisitions. Each of the principal businesses increased market share. Benefits have also been gained from the restructuring of certain activities within the Group which have improved market focus and increased operational efficiency.

Organic growth of nearly 10% was achieved in US Plumbing and Heating and good progress was also made in the UK, French and Canadian businesses, relative to their markets. The US Building Materials Distribution division performed particularly strongly as a result of its restructuring programme and higher lumber and structural panel prices. Trading margin improvements were achieved in North American Plumbing and Heating, US Building Materials and, within European Distribution, from the UK, French and Italian businesses.

On a constant currency basis, Group sales increased by 24.7% and trading profit by 23.7%. Currency translation has had an impact on the Group's reported sterling results for the first six months compared to the previous year, reducing Group sales by £91.1 million (2.3%) and Group trading profit by £4.5 million (2.1%).

After taking account of currency translation, Group sales increased by 21.8% from £3,964.1 million to £4,828.3 million. Trading profit rose by 21.1% from £212.3 million to £257.1 million. After deducting goodwill amortisation of £19.2 million (2003: £14.0 million), the reported sterling operating profit increased by 20.0% from £198.3 million to £237.9 million.

Net interest payable was £11.6 million (2003: £11.2 million), reflecting acquisition spending partly offset by lower interest rates. Interest cover was 20.5 times (2003: 17.7 times).

Profit before tax and goodwill amortisation increased by 22.1% from £201.1 million to £245.5 million. The increase in earnings per share before goodwill amortisation was 21.5%, from 25.05 pence to 30.44 pence.

European Distribution
The results in the European Distribution division were boosted by acquisitions, principally that of PBM in July 2003, and the strong performance of the UK business.

Sales for the division increased by 45.1% from £1,397.8 million to £2,028.0 million, including £520.6 million (36.1%) which relates to acquisitions, predominantly PBM. The organic increase in sales was 4.6%. Trading profit rose by 32.1% from £81.6 million to £107.8 million.

Although Wolseley Centers in the UK and Brossette in France both increased their trading margin, the overall divisional trading margin reduced from 5.8% to 5.3% of sales. This was a primarily a result of the Pinault Bois & Materiaux ("PBM") acquisition where the trading margin in the first half is lower due to seasonal factors, and an increase in the central costs allocated to the division.
In the first six months a further net 74 branches were added to the European network, giving a total of 2,340 locations (31 July 2003: 2,266).

UK
Wolseley Centers took advantage of the continuing strength of the housing market and UK economy. The RMI market remained the principal driver, buoyed by strong consumer demand against the backdrop of low interest rates, low unemployment and house price inflation. Despite the weakness in the industrial and commercial markets, sales increased by 10.8%, breaching the £1 billion mark for the first time in a six month period, to £1,018.4 million (2003: £918.9 million). Organic growth was 5.6% with Lightside being the strongest performer. Each of the four divisions improved their gross margins compared to the same period last year.

Following the move to two new distribution centres in the last 18 months, the UK business has seen an increase in throughput, improved productivity and enhanced customer service. During the first six months, 44 net new locations were added taking the total for Wolseley Centers (including Ireland) to 1,460. The significance of these investments will be reflected in future trading, both in
terms of supporting continued growth and in the generation of further operational efficiencies. These efficiencies were reflected in a twenty basis point improvement in trading margin in the first half of the year at 6.7% compared to 6.5% in the first half of 2003. The working capital to sales ratio showed an improvement due to the continued focus on inventory management.

North American Plumbing and Heating Distribution
The performance of the North American Plumbing and Heating division was particularly impressive with strong increases in sales and profits and the highest ever trading margin.

Reported sales of the division were up 6.2% from £1,727.8 million to £1,835.1 million despite the adverse impact of currency translation. Trading profit increased by 11.0% from £96.1 million to £106.7 million.

Currency translation reduced divisional sales by £81.2 million (4.7%) and trading profit by £4.4 million (4.6%).

There was a net increase of 30 branches in North American Plumbing and Heating Distribution from 961 at 31 July 2003 to 991 locations at 31st January 2004.
Charles Banks, Wolseley plc Group Chief Executive said:
'We are delighted to report our eighth consecutive set of record half-year results. We have seen good momentum in both sales and profits across our main businesses, with strong underlying performance reflecting our ability to outperform local markets. There is no apparent reason why our strong performance should not continue in the second half.'

Interim Pre Close Trading Update from Topps Tiles

Topps Tiles, the UK’s largest tile and wood flooring specialist, is pleased to announce continued strong trading. Like for like sales are in excess of 20% and profit before tax for the six month period ending 3rd April 2004 is now expected to be in the region of £15 million, significantly ahead of market expectations.

Topps Tiles expects to announce interim results for the six months to 3rd April 2004 on 26th May 2004.

At the time that the interim results are announced, the board expects to announce proposals for the company to carry out a share spilt.

Nick Ounstead, Chief Executive of Topps Tiles said:

'Whilst this is proving to be an exceptional first half, sustaining the current level of like-for-like sales growth for the remainder of the financial year could prove challenging given very strong figures for the corresponding period last year.'

'With our share price currently in excess of 650p, we believe that a share split will increase liquidity by making our shares more affordable and accommodate investors who are deterred by the current price level.'

Orama Takes Lead in Design and Innovation with the Launch of its Advanced Surfaces Centre

On 23rd March Orama, the independent manufacturer of worksurfaces and associated decorative products, annnounced a new initiative, which the company says is set to transform the way it brings new products to market. The Advanced Surfaces Centre (ASC) acts as a model design lab and has been launched to turn new ideas into surfaces solutions by transcending the gap between design prototypes and the full scale production of original products.

New product development is at the heart of Orama’s drive and expansion. The company is undergoing renewal, evidenced by the company’s complete realignment behind a strong visionary and entrepreneurial design-led philosophy. With an ongoing programme of market research, the implementation of stringent quality and best practice manufacturing processes and the deployment of specialist teams to service the requirements of individual channels, Orama is committed to innovation.

Geoff Noble, previously Operations Director (pictured), has been appointed to manage the ASC intiative. Under Geoff’s leadership, the company will continue to invest both time and resources to turn today’s ideas into products. His thorough understanding of the market and his position on the Orama Board will provide the ASC with expert management.

As Sarah Brook, marketing manager, Orama, points out: ‘We are already seeing the benefits of the ASC approach with the launch of Ophelia, a new affordable and design-led product. Ophelia is a new high quality solid surface solution. The development of this solid composite surface has benefited from the integrated approach afforded by the ASC in terms of design and technical expertise.’

Peter Holt, sales and marketing director, Orama, concludes: ‘The Advanced Surfaces Centre will take advantage of new manufacturing techniques and developments in materials to bring new concepts to market. The ASC will be at the heart of our strategy to offer the most innovative, versatile and practical product lines to our customers. The centre will combine the creativity and ingenuity of our design team and translate product ideas into new workable and practical solutions. Ultimately, this initiative encapsulates Orama’s values of innovation and passion for worksurfaces.’

Orama offers quality durable decorative panels and worksurfaces. Established for many years, Orama holds ISO 9001 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

Roman Links up with Alfix to Help Installers Create the Perfect Wet Room

Following the introduction of its Wetrooms range of doors, panels and low-level shower trays in 2003, Roman Ltd is working closely with Alfix (UK) Ltd, a leading supplier of sealing and fixing products, to provide installers with guidance and information on the techniques and materials required to achieve the waterproofed floor and walls that are essential for the creation of a successful wet room.

The first initiative from the Roman/Alfix alliance is a new jointly prepared leaflet 'Creating the Perfect Wet Room', which is freely available from both companies through their brochure request lines, websites and sales forces. The leaflet outlines in words and pictures the use of Alfix products to achieve a waterproof structure in eight easy steps.

Alfix products also feature in the training facility for Aqualisa shower systems that Roman is hosting at its County Durham headquarters.

Alfix (UK) Ltd is based at Letchworth in Hertfordshire and is a subsidiary of Alfix A/S, one of Scandinavia's leading manufacturers of products for ceramic tile fixing and grouting. Formed in 1963, Alfix has its headquarters at Kolding in Denmark and has developed a unique product range and widespread expertise in relation to the installation of ceramic tiling.

Welcoming the links that are being forged with Alfix, Roman's Marketing Director, David Osborne, said: 'Since many of our Wetrooms products will be installed without using the option of a prefabricated shower tray, it is vital that the walls and floor are properly prepared to a high standard so as to ensure that water is contained within the wet room and does not penetrate to other parts of the building. Alfix has gained a wealth of experience in the Scandinavian countries, where wet rooms are now well established, and has a comprehensive product line-up. Our two companies have a shared enthusiasm to help installers gain knowledge of wet-room technology and confidence in the practicality of achieving first-class results.'

Barry Whiddington, Sales Director of Alfix (UK) Ltd, said: 'We applaud Roman's initiative in introducing a range of components that will make wet rooms easier to realise. Historically, in the UK we have been selling directly to the larger tiling contractors but the biggest drive towards wet rooms may well be through some of the smaller but enterprising installers. Linking up with Roman will help to give us access to those smaller contractors, and we plan to supply that sector of the market by establishing a network of carefully selected distributors.'

New Improved Franke Website Follows Customer Survey

iLast summer Franke invited customers to take part in a website survey*, designed to show how http://www.franke.co.uk could be improved to better meet user needs. The results of that survey have been analysed and the site developed accordingly.

The site is now simpler to navigate using links from the Home Page. For example, locating information on a specific product, new products or spares & service arrangements. The survey also reveaied the need for DXF fiies of templates for undermounted sinks to be downloaded, which can now be done.
'Find a Franke Dealer' has a more prominent link from the home page. If you have a web address, this can be linked to the Franke site.

Product Manager John Swain commented: 'In the last 12 months, Revised Visitor Session figures have more than doubled. Our survey revealed that 80% of all site users are consumers looking for product information and of that figure, 57% are first time visitors. This represents an enormous number of potential new customers for Franke retailers.

'The importance of the site as a communication vehicie can only continue to grow, as the RVS annual moving total shows. So make sure you have registered on our retailer database to take full advantage of consumers looking for Franke products in your area.' says John.

*Consumers who visited the site and navigated within it for information for a reasonabIe duration.

Email: mailto:info.uk@franke.com
Web: http://www.franke.co.uk

Merloni - Net Profits up at €126 Million. Dividend Rises to €0.361

At a recent meeting , the board of directors of Merloni Elettrodomestici reviewed the consolidated financial statements for 2003, which closed with net profits of €126m (up 16% on €108m in 2002).

The Board will recommend to the shareholders a dividend pay-out of €0.361 per ordinary share, an increase of 12.1% on the previous year (€0.322) and of €0.379 per savings share (€0.34 the previous year), payable as of 27th May. The proposed dividend includes an amount due on treasury shares (the supplement thus calculated on own shares will be €0.036 euro).

Earnings per share (ordinary and savings) amount to €1.08 (€0.97 in 2002), of which 30% will be distributed as a dividend pay-out (30% the previous year).

The provisional figures for 2003 disclosed on 5th February are confirmed, as follows:
• Sales at 31st December 2003 stood at €3,008m, up 21% on 2002 (€2,480m).
• Gross operating margin (EBITDA) was €387m, up 22% on 2002 (€318m). This margin over sales was 12.9%, in line with 2002.
• Profit before tax (EBIT) was €246m, up 21% on 2002 (€203m). EBIT over sales (ROS) was 8.2%, in line with the previous year.
• Net indebtedness at 31st December 2003 stood at €192m, a slight increase on €181m at the previous year end. Gearing at 31st December 2003 was down at 0.40 (0.43 at 31st December 2002).

The board of directors discussed Merloni Elettrodomestici's investment in Faber Factor and considered the possible entry of a banking or factoring specialist as a third partner with the aim of substantially reducing the Company's stake in Faber Factor. Steps in this direction must be in observance of the terms prescribed in Banca d'Italia banking regulations.

The board of directors approved the draft financial statements. The shareholders will meet on 30th April (first call) and on 5th May (second call).

Maytag Corporation in USA Creates Separate Appliance Services Business Unit

Maytag Corporation announced on 23rd March that its Maytag Services consumer in-home appliance repair operation will become a separate business unit within the company. The newly formed Maytag Services business unit remains part of the Corporation's Major Appliances financial reporting segment, along with Maytag Appliances and Maytag International.

Arthur B. Learmonth, formerly Maytag Appliances' senior vice president supply chain, has been promoted to lead the new unit as president of Maytag Services, effective April 1st. Learmonth will report to Ralph Hake, Maytag chairman and CEO.

Last year, Maytag announced the formation of Maytag Services to provide repair and maintenance services to Maytag brand appliances, as well as other major appliance brands. Since then, Maytag Services has expanded this service into select markets nationwide.

'We view Maytag Services as a significant opportunity for the company to extend its brand and reputation for dependability by providing consumers with a quality service alternative,' said Hake. 'Consumers today have fewer appliance service options. By making Maytag Services a separate business unit, we're affirming our strategy to become a growth-oriented services business for Maytag-branded appliances and other major appliance brands.'

Maytag Services' new leader, Art Learmonth, has worked extensively in lean manufacturing. In 1997, he joined Maytag Appliances as vice president manufacturing and engineering, before taking on the role of senior vice president, supply chain in Maytag Appliances during 2003, leading the company's LeanSigma® journey in transforming its major appliance product development and manufacturing processes.

'Art's experience in lean methodology will be extremely important in leading Maytag Services in his new role as president,' Hake commented.

With this change, Steven D. Benton, the current vice president and general manager of Maytag Services, has been named Maytag's vice president of strategic alliance development, effective April 1st, reporting to Roger Scholten, senior vice president and general counsel.

Benton will use his 30 years of Maytag experience to support the company's strategic alliances, OEM development and other business opportunities. He has held leadership positions within Maytag Appliances, regional operations and marketing, and corporate development, where he successfully led the integration of Amana into the Maytag family of brands.

'Over the past year, Steve has led Maytag Services to this critical point, allowing us to make it a separate business unit,' Hake said. 'Maytag is now going to benefit from Steve's experience to contribute to continued growth opportunities for our company.'

Maytag Corporation is a leading producer of home and commercial appliances with 12 manufacturing facilities in the United States. Its products are sold to customers in the United States and in international markets. The corporation's principal brands include Maytag®, Amana®, Jenn-Air®, Jade®, Hoover® and Dixie-Narco®.

Masco Corporation Raises First Quarter Earnings Guidance and Declares Quarterly Dividend

Masco Corporation announced on March 18th that the Company's first quarter sales and operating earnings are exceeding its expectations as the Company continues to gain market share in many of its businesses. The Company now believes that its first quarter 2004 earnings from continuing operations, excluding the charge and gain discussed below, will approximate $.42 to $.44 per common share compared with its previous guidance of $.36 to $.38 per common share. Included in the new guidance is incremental income of approximately three cents per common share from the Company's financial assets.

Masco will update its previously given 2004 full-year earnings guidance from continuing operations, of a record $1.80 to $1.90 per common share, when it releases first quarter results in early May 2004.

The Company's estimate of $.42 to $.44 from continuing operations is an estimate of earnings per common share that excludes a significant non-cash charge pertaining to the Company's previously announced planned disposition of several European operations as well as a partial offset to this charge from the anticipated reversal of a portion of the Company's accrual of charges related to the previously reported class action settlements of its subsidiary, Behr Process Corporation. Reported earnings per share for the first quarter will reflect the two items described above, the financial impact of which has not yet been determined.

Masco also announced that its Board of Directors has declared a quarterly dividend of $.16 per common share payable on May 10th, 2004, to shareholders of record on April 9th, 2004.

Web: http://www.masco.com

Miele Did Introduce First Cat and Dog Vacuum Cleaner says ASA

A complaint, objecting to an advertisement for Miele Company Ltd of Abingdon, Oxfordshire was not upheld according to published details from the Advertising Standards Authority.

Dyson Ltd objected to the Advertising Standards Authority (ASA) about an advertisement that was headed 'The first vacuum cleaner specifically designed for cats and dogs' and claimed 'Unfortunately your best friends may smell, they moult, and occasionally they cough up fur balls. Well, our Cat and Dog vacuum is specifically designed with your best friends in mind. Firstly, its turbo brush head easily removes hairs from carpet. Then an odour-eating charcoal filter leaves your home smelling fresh and pet free ...'. The complainants challenged the claim 'The first vacuum cleaner specifically designed for cats and dogs'. The Complaint was not upheld

The advertisers said they had introduced the Cat & Dog vacuum cleaner in 1995 in Switzerland and in 1996 in Britain. They said they had researched the market before they introduced the Cat & Dog and had found that no other cleaners specifically designed for cat and dog owners were available.

The advertisers explained that, although they offered cleaners that were customised for different purposes, such as cleaning particular surfaces, their cleaners were intended to be the main or only cleaner in a household and were not so specialised that they were unsuitable for general use. They said the Cat & Dog cleaner had a large turbo brush and an active charcoal filter; they said the current model also had a mini turbo brush, which was especially good for cleaning smaller areas such as upholstery.

The advertisers said they had chosen to offer those features, in preference to other features such as parquet brushes or high efficiency particulate air (HEPA) filters, to meet the special needs of pet owners. They said two of the twelve vacuum cleaners they offered had mini turbo brushes, three models had large turbo brushes and only the Cat & Dog had 'active air clean' filters; they said the Cat & Dog was the only model they offered that combined the three features that were particularly useful to pet owners.

The advertisers acknowledged that some of the Cat & Dog's features were available on other cleaners but maintained that those features were especially useful to pet owners. They acknowledged that other vacuum cleaners could also pick up pet hair and reduce odour but said the Cat & Dog was the first cleaner that was designed specifically to do that and marketed to pet owners.

The advertisers sent a transcript of a television programme and extracts from magazines that had tested vacuum cleaners and found that the Cat & Dog picked up pet hairs better than other cleaners. Because it offered features that were especially useful to cat and dog owners, the Authority was satisfied that the Cat & Dog had been designed with cat and dog owners in mind. The Authority acknowledged that cleaners that were not specifically designed for cat and dog owners could clean up cat and dog hair effectively and the features that made the Cat & Dog suitable for cat and dog owners might be found on other, non-specialised, cleaners.

Because the Cat & Dog, however, was designed primarily for cat and dog owners, and because the Authority understood no other vacuum cleaners that were available before the Cat & Dog had been designed primarily for cat and dog owners, the Authority considered that the advertisers had substantiated the claim.

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