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Whirlpool Corporation and Maytag Corporation Sign Definitive Merger Agreement
 
Whirlpool Corporation and Maytag Corporation have signed a definitive merger agreement in which Whirlpool will acquire all outstanding shares of Maytag in a cash and stock merger valued at $21 per share.  One half of the per share consideration will be paid in cash and the balance in a fraction of a share of Whirlpool common stock as described below.

The Board of Directors of Maytag has approved the merger agreement with Whirlpool and intends to recommend to Maytag’s shareholders that they adopt the agreement.

Prior to signing the Whirlpool merger agreement, Maytag paid a $40 million termination fee to Triton Acquisition Holding and, thereafter, terminated the agreement with Triton.  In accordance with Whirlpool’s August 10, 2005, offer, as extended on August 12, 2005, Whirlpool has reimbursed the $40 million to Maytag today.  In addition, Maytag said that the special meeting of stockholders scheduled for Friday, September 9, 2005, has been cancelled as a result of the termination of the Triton merger agreement.

The aggregate transaction value, including assumption of approximately $977 million of debt, is approximately $2.7 billion. The transaction is subject to customary conditions, including, among other things, regulatory approvals and Maytag shareholder approval.  The transaction will be taxable to Maytag shareholders.

Maytag shareholders will receive, for each share held, $10.50 in cash and between 0.1144 and 0.1398 of a share of Whirlpool stock.  The amount of Whirlpool stock to be issued in exchange for each Maytag share will depend upon the volume- weighted average trading price of Whirlpool’s stock during a 20 trading-day period ending shortly before the merger. 

Maytag shareholders will receive 0.1144 of a share of Whirlpool stock if the average Whirlpool stock price is $91.79 or greater and 0.1398 if it is $75.10 or less; between the two prices, the exchange ratio will vary proportionately.

Howard Clark, Maytag board member since 1986 and lead director, said, 'After careful consideration in conjunction with our financial and legal advisors and an independent committee of Maytag’s board consisting of all non-management directors, we re-evaluated the transaction with Triton and concluded that the Whirlpool agreement is superior and is in the best interest of our shareholders.'

Jeff Fettig, Whirlpool chairman (pictured), president and CEO, said, 'The combination of Whirlpool and Maytag will create very substantial benefits for consumers, trade customers and our shareholders. This transaction will enable us to achieve significant efficiencies and better asset utilization. It will also allow us to offer a wider range of products to a much broader consumer base.'

'Overall, this transaction will translate into better products, quality and service, as well as efficiencies, which will enhance our ability to succeed in the increasingly competitive global home-appliance industry,' added Fettig.  'We remain highly confident that we will receive regulatory clearance for this transaction in a timely manner.'

Ralph Hake, Maytag chairman and CEO, said, 'This combination brings together two leading organizations with strong traditions in quality and customer satisfaction. Together, Whirlpool and Maytag will bring substantial benefits to consumers around the world, as well as to shareholders and customers.'

Whirlpool has sufficient resources to finance the acquisition and has received strong support from the banking sector. The company currently has a $1.2 billion, five-year committed credit facility, scheduled to mature in 2009. There have been no borrowings under this agreement. The acquisition and upcoming debt maturities of the combined company are expected to be financed through current bank agreements and with new committed bank facilities.

In addition to reimbursing the $40 million termination fee paid by Maytag to Triton, Whirlpool has agreed to pay up to $15 million to assist Maytag in retaining key employees.  Whirlpool also has agreed to pay Maytag a 'reverse break-up fee' of $120 million under certain circumstances in the unlikely event of failure to obtain regulatory clearance.

Maytag’s shareholders are expected to vote on the transaction before the end of the year. Whirlpool expects the transaction to close as early as the first quarter of 2006, following approval from Maytag shareholders and regulatory clearance.

Lazard serves as financial advisor; Wachtell, Lipton, Rosen & Katz serves as legal advisor; and Cleary Gottlieb Steen & Hamilton serves as special legal counsel to Maytag.  Greenhill & Company, Weil Gotshal & Manges LLP, Howrey LLP, and The Boston Consulting Group serve as advisors to Whirlpool.

Producers Welcome Delay to Waste Electrical Recycling Law to June 2006

REPIC, the not-for-profit recycling body set up by 51 of the UK's leading electrical goods producers, has welcomed the government's announcement of a delay to the implementation of the EU Waste Electrical and Electronic Equipment (WEEE) Directive until June 2006.

The WEEE Directive will impact on every household in the UK, as it requires producers to provide the means to recycle all redundant, separately collected electrical and electronic appliances, from washing machines, to games consoles, torches and hearing aids. The cost of recycling redundant electrical equipment is the responsibility of the producer or retailer that introduces new products into the UK market. REPIC supports the government's position to delay the Directive's implementation, as it will allow all parties, including producers, retailers and local authorities, to agree how to implement the Directive effectively. The Directive had originally been due to come into force in August this year.

Following the announcement on 10th August, Dr Philip Morton, REPIC's Chief Executive, said:
‘We are in agreement with the Government that a January 2006 implementation would have been premature. There are several issues that require clarification to enable a workable solution to be up and running from June 2006. We look forward to working with the Government to achieve this goal.’

REPIC represents producers that will be responsible for 80% of the costs of recycling WEEE goods, including, Indesit Company, Bosch and Siemens, Hoover Candy, Panasonic, Philips, Sony, Electrolux, Kenwood, Hitachi, Sharp and Glen Dimplex.

ELECSA Teams up with Industry Experts to Deliver Free Part P Seminars in September

If you have missed your chance to book onto one of the free Part P evening seminars that were organised by ELECSA held in July and August 2005, you have another opportunity in September.

ELECSA has teamed up with experts across the industry to deliver a free series of Part P seminars across England and Wales. ‘Here is your opportunity to meet experts across the industry to find out how Part P affects everyone and what to do to comply. ELECSA assessors will also be on hand to answer questions about the on-site assessments. Additionally, electricians who take up the opportunity to register with ELECSA on the night of the seminar will be offered a £25 registration discount’ said Julian Carter, General Manager, ELECSA. The seminars will be held in the early afternoon or late evenings at the following nine locations:

* Thursday 1st September – Reading
* Tuesday 6th September - Andover
* Thursday 8th September – Basingstoke
* Monday 12th September – Chatham
* Tuesday 13th September – Guildford
* Thursday 15th September - Cardiff
* Monday 19th September - Swansea
* Tuesday 20th September - Canterbury
* Thursday 22nd September – Plymouth

Places are limited. You are encouraged to book early to avoid disappointment. For further details and to book your free place, phone ELECSA on 0870 749 0080 or email mailto:seminars@elecsa.org.uk. General information on the ELECSA scheme can be located at http://www.elecsa.org.uk.

Jacuzzi Brands Announces Third Quarter 2005 Financial Results

Jacuzzi Brands, Inc. announced on 11th August operating results for the third quarter ended June 30th, 2005. Net sales for the third quarter of fiscal 2005 increased to $334.2 million from net sales of $331.3 million for the third quarter of fiscal 2004. Operating income for the fiscal 2005 third quarter decreased to $34.0 million from operating income of $41.1 million for the third quarter of fiscal 2004.

Earnings from continuing operations in the fiscal 2005 third quarter of $37.9 million, or $0.50 per share, included a gain on the sale of Rexair of $25.8 million, or $0.34 per share, a tax benefit of $4.4 million, or $0.06 per share, and after-tax restructuring charges of $0.7 million, or $0.01 per share. Earnings from continuing operations in the third quarter of fiscal 2004 were $16.9 million, or $0.22 per share, and included after-tax restructuring charges of $0.3 million, or $0.01 per share. The net loss for the third quarter of fiscal 2005 of $20.8 million, or $0.27 per share, included losses from the operation and disposal of discontinued operations totalling $56.0 million, or $0.77 per share. Net earnings for the third quarter of fiscal 2004 of $13.8 million, or $0.18 per share, included a loss from the operation of discontinued operations of $3.1 million, or $0.04 per share.

As previously announced, the Company sold its investment in the Eljer business during the third quarter of fiscal 2005. Eljer's operating results are being accounted for as discontinued operations and are no longer included in the results of the Bath Products segment discussed below.

Higher consolidated net sales in the third quarter of fiscal 2005 were driven by an 11.6% increase in Plumbing Products sales, which offset lower sales at the Bath Products and Rexair segments. The Plumbing Products segment also reported higher operating income, while the Bath Products and Rexair segments reported lower operating income from the same period last year.

Sales in the Bath Products segment decreased 2.3% in the third quarter of fiscal 2005 from the same period in fiscal 2004. A $3.3 million foreign currency benefit was offset by lower sales in the U.K. and Italian bath businesses and the U.S. spa business. Sales in the Company's U.K. bath business, which serves the Company's largest market outside the U.S., declined by 14.6% in local currency as the slow down in the U.K. market, which began in the second quarter, continued through the end of the third quarter. As retail sales in the U.K. have declined, customers have reacted by reducing their inventory levels as they wait for a consumer rebound. The Company does not expect to see a U.K. rebound in the current fiscal year. At the same time, sales of Astracast, the Company's U.K.-based sink business, improved over last year despite the U.K. market slowdown, largely as a result of increased export sales to the U.S. Sales in the Italian bath and U.S. spa businesses declined primarily as a result of continued softness in the Italian bath and U.S. spa markets.

Operating income decreased to $12.4 million in the third quarter of fiscal 2005 from $19.4 million in the third quarter of fiscal 2004. The decline was primarily the result of the decreased sales in the U.K. and Italian bath businesses and the U.S. spa business. These declines also triggered decreases in production levels, which resulted in lower absorption of fixed costs and reduced margins. The U.K. and Italian bath businesses were also affected by a shift in mix to lower margin products. Operating income in the domestic bath business improved as a result of a decrease in workers' compensation cost resulting from improved claims experience and increased production efficiencies at the Chino, CA bath plant.

Operating income in the third quarter of 2005 included $1.4 million of restructuring charges compared to $1.1 million in restructuring charges a year ago. The 2005 charges were primarily related to staffing reductions in the U.K., management changes in the domestic bath business and other overhead reductions.

Sales in the Plumbing Products segment increased 11.6% to $96.2 million in the third quarter of fiscal 2005 compared to the same period last year. The higher sales were driven by the continued growth in principal markets as well as favorable pricing trends of the Zurn specification drain product lines which resulted from favorable market conditions and successful new product introductions.

Operating income for the third quarter of fiscal 2005 increased 10.1% to $20.7 million from the same period last year. Strong sales volume, favorable pricing, and lower purchased parts costs resulting from new sourcing initiatives offset escalating resin costs, which negatively impacted PEX margins in the quarter.

Outlook
The Company expects to report net earnings from continuing operations of $0.79 to $0.83 per share for fiscal 2005. Included in this amount is the after tax gain on the sale of Rexair of $25.8 million ($0.34 per share), tax benefits totaling $7.3 million ($0.10 per share), debt retirement costs of $1.8 million ($0.02 per share) and restructuring charges of $2.5 million ($0.03 per share). Excluding these amounts, net earnings from continuing operations for fiscal 2005 is expected to be in the range of $0.40 to $0.44 per share which is below prior estimates largely as a result of continued softness in the U.K. bath, Italian bath and U.S. spa markets and the shift to lower margin products in the U.K. and Italian bath businesses. The guidance above does not include any expenses that might be incurred in connection with additional personnel eliminations or other measures that might be undertaken to restructure our operations and further reduce our cost structure.

More Trade Visitors Tap into Online Resources

A Franke survey has revealed that the number of trade visitors looking for brochures online has nearly doubled in the last two years.

The sink manufacturer has added new features to its site over the period in order to make access to brochure materials more convenient.

And it seems that an increasing number of retailers and installers are finding it a much more convenient method of gathering information.

As well as being able to request a brochure online, the sink manufacturer has recently made it possible to download pdfs of its latest brochures, including Taps and Triflow, Designer Value Packs, Active Kitchen and the Kubus.

John Swain, product manager for Franke UK, commented: ‘The survey results clearly indicate that the website is a valuable resource for the trade, as well as the consumer, so it’s important that we keep reviewing it to check that access to information is as easy as possible.’

For further information, visit http://www.franke.co.uk or call 0161 436 6280.

In-toto Celebrates 25 Years in Style

In-toto celebrated its twenty fifth anniversary in style this summer with a weekend of fun in London. Forty franchisees and their partners stayed at the Waldorf Hotel, enjoyed a meal at the Savoy and saw 'Chicago' at the Adelphi theatre. For the energetic, this was followed by a late night session at the Café de Paris. Participants took a late breakfast the next day, then a cruise on one of the large Thames party boats before making their way home.

In-toto was established in 1980 as an entry to the UK for Wellmann's German made kitchens. Rather than simply go through established kitchen retailers, the company set up a franchise so that growth and high standards could be attained. Many franchisees have a kitchen or design background but some came with no experience at all. In-toto's training enabled even these novices to thrive in their own kitchen businesses.

In-toto was different in 1980 as it offered a complete design, supply of all kitchen elements and install service. The company took full responsibility for all works and charged just one, reasonable price. Even today that is a valued service. It saves sourcing cabinets, appliances etc. from different shops, then co-ordinating up to six different tradesmen, none able to take responsibility for any purchase or design errors.

Franchisees may come from different walks of life but are unified by their job satisfaction and commitment to customer service. 'Owning a showroom and benefiting from running a reputable concern is good for the franchisee,' commented national franchise manager, Graham Russell, 'It is also better for us, as showroom managers would not have the incentive to produce such good results.'

In-toto is a full member of the British Franchise Association and also the Kitchen, Bedroom and Bathroom Specialists‚ Association and its personnel have taken key voluntary positions in each organisation from time to time.

The spread of company showrooms has picked up pace over the past three years, bringing the total to forty-four. Judging by regional sales enquiries there are several areas that need an In-toto showroom. The company is keen to hear from anyone who wants to consider opening an In-toto showroom of their own.

Contact David Watts on 01937 841483 or visit http://www.intotofranchise.co.uk for further information.

Retaining the Sparkle of Glass in the Bathroom

A brand new shower screen sparkles, but that clean glass look can soon vanish in the harsh environment of a bathroom – unless it is protected. Hard water, high humidity, soap and shampoo can all take its toll on the glass, leading to surface damage and discolouration. However, with the application of Ritec’s ClearShield technology, the company says that the glass will remain pristine for longer.

The many salts and minerals (limescale) found in tap water bond to the glass and eventually etch the surface. Dirt and greasy substances such as soap and shampoo will then accumulate in the microscopic valleys of the glass surface, making cleaning difficult and more labour-intensive.

Ritec’s solution to this problem is to treat the surface of the glass with ClearShield Shower Protect. This creates a chemically non-reactive and ‘non-stick’ surface, meaning that limescale and general dirt cannot bond to the glass. Resisting build-up stains from limescale (waterspots), grease, dirt and body fats, this protection system also possesses hygienic properties that hinder the adherence of bacteria.

Glass treated with ClearShield™ is always much easier to clean without the need for harsh abrasive materials. This saves time and effort and the glass remains visually attractive for longer.

ClearShield upgrades ordinary glass into ‘non-stick’, Low-M (Low Maintenance) Glass® and comes in three special formulations – Glass Protect, Sandblast Protect and Shower Protect. Its polymer resin forms a multi-molecular layer on glass, bonding chemically to the surface, to create a non-stick and easy-to-clean glass.

Stephen Byers, Managing Director of Ritec, says, ‘Glass is chosen for showers because it is bright, sparkling, has excellent visual appeal and is easy to clean, making it a popular product for bathroom applications. However, while glass often breaks its initial promise, it doesn’t have to.’

A UK shower enclosure manufacturer, Aqata Shower Enclosures, understands this and is giving its customers (the end user) the option of having ClearShield Shower Protect applied to its shower doors and screens for added value.

Aqata, which provides an extensive range of luxury products at affordable prices, has been applying Shower Protect at its factory in Leicester with excellent results, and it is proving to be a very popular choice among its customers. Around 70% of Aqata shower enclosures have the ClearShield treatment applied to them.

Jayne Barnes, Aqata’s Sales Director, says, ‘Our customers are really pleased with ClearShield’s performance. The easy cleaning and simple low maintenance after-care programme are a real advantage for today’s busy lifestyles.’

The huge benefits of using the awarding winning Ritec ClearShield technology have also been recognised by two top London hotels. When the chic Sanderson Hotel, a lavish urban retreat in the West End, decided to re-invigorate its bathrooms, the sandblasted glass shower cubicles in 150 rooms were treated. Although an attractive and popular option, sandblasted glass is especially vulnerable to surface contamination such as finger marks, and as a result can soon lose its visual appeal. The surface was renovated and the treatment spray-applied on site. Once cured, any residue polymer is simply wiped off.

It was a similar case at The Dorchester, where discoloured glass in shower enclosures in the elegant art-deco style bathrooms was renovated with specialist products before the ClearShield technology was hand-applied by Ritec applicators. "The investment should certainly prove worthwhile by reducing cleaning time and effort for the housekeeping teams at these two hotels,’ comments Stephen Buyers. ‘When combined with Ritec’s recommended after-care programme, ClearShield glass will look and perform like new for years to come while creating a consistently bright and sparkling environment for guests.’

With a proven track record of over 20 years, the ClearShield system offers a cost effective range of products that reduce maintenance while adding to the long-term value of a building or home. It has been successfully tried and tested across a variety of industry sectors including architectural glazing, decorative glass, residential windows, conservatories and marine glass. For shower doors and screens, its application keeps them looking like new for longer and with less cleaning, ClearShield is also environmentally friendly as the need for harsh chemicals is considerably reduced.

Tel: 020 8344 8210
Web: http://www.ritec.co.uk

One Month Until Awards Entry Deadline

Retailers and designers have less than one month to submit entries for the 2006 Bathrooms And Kitchens Industry Awards. The deadline for completed entries is 23rd September 2005.

Every year, the Industry Awards recognise the talent and business acumen of designers and retailers working in the bathroom and kitchen industry. Judging criteria for all the categories is in the entry forms available to download from www.bathroomskitchens.co.uk/awards

New to this year are the designer awards for accessible bathrooms and kitchens recognising those designers for showing their skills and experience in overcoming barriers to independence. It will take into account the client's disability and how the designer has used the products available to them.

The full list of categories this year is:
* Master Retailer Award for Kitchens
* Master Retailer Award for Bathrooms
* Showroom Award for Kitchens
* Showroom Award for Bathrooms
* Marketing Award for Kitchens
* Marketing Award for Bathrooms
* Designer Award for Kitchens
* Designer Award for Bathrooms
* Young Designer Award for Kitchens
* Young Designer Award for Bathrooms
* Designer Award for Accessible Kitchens
* Designer Award for Accessible Bathrooms

The winners of the two Designer Awards will represent the UK and compete against the winners of design competitions in Australia, New Zealand, USA and Canada to battle for the title of International Designer of the Year.

The 2006 Awards Ceremony takes place at the Hilton Birmingham Metropole on 23rd January 2006 coinciding with the KBB exhibition at the NEC. Tables are popular at this event and the 2004 Awards was a complete sell out so book your places today to avoid disappointment.

Please telephone Clare Coe on 020 8515 6898 or email clarecoe@uk.dmgworldmedia.com to request entry forms or book tables.

Blanco UK Announces Exclusive Sales and Marketing Agreement with Gutmann

With immediate effect, the sales, marketing and distribution of Gutmann, the cooker-hood range hand-crafted in Germany, will be handled by Blanco UK in the UK and Ireland. The range complements the current range of Blanco cooker hoods.

Commenting on the exclusive agreement, Blanco managing director Ron Blount said:
‘Every so often, an opportunity comes along that none of us can afford to ignore. This opportunity has occurred with the Gutmann brand. Gutmann is absolutely dedicated to creating a range of cooker hoods founded on 'extraction without compromise'. We believe the company is producing the best cooker hoods available today - image-enhancing products that present a wealth of potential for Blanco and our customers.

‘Gutmann cooker hoods are hand-crafted and highly-engineered. They combine aesthetic appeal with maximum efficiency for this critical kitchen appliance, and we are delighted to embrace the prestigious Gutmann brand within our specialist Blanco portfolio.’

Tel: 020 8450 9100
Web: http://www.blanco.co.uk

Gorenje Joins KBSA as New Corporate Member

The Kitchen Bathroom Bedroom Specialists Association has welcomed Slovenian appliance manufacturer Gorenje as a new corporate member.

Gorenje recently launched a new range of built-in products, including a coffee machine, microwave, induction hobs and touch control ovens, and earlier this year it previewed to the industry a new refrigeration range to be launched this autumn.

‘We’re delighted that Gorenje has decided to join our ranks of corporate members and are sure the company will make the most of KBSA membership benefits,’ said KBSA operations manager Lucinda Kenny.

‘Existing members will get an opportunity to find our all about Gorenje later this year – the company is hosting our regional meeting on November 24th at its Wimbledon showroom.’

Sales Director of Gorenje UK, Bill Miller added: ‘We are looking forward to continue building partnerships with retailers, specialists and designers thanks to our KBSA membership.

‘The KBSA has become a benchmark for setting standards within our industry. Consumers recognise quality, product knowledge and commitment as well as good value and customer service where they see the KBSA logo, and these are all qualities that Gorenje is proud to embody.'

World’s First Frost Free Chest Freezer Electrolux ECS3070 is Which? Magazine Aug 05 Best Buy

Electrolux ECS3070 is the new Best Buy in Which? Magazine August 05 issue. The magazine reports, 'We put the Electrolux 3070 through our usual rigorous tests and it excelled at all of them, becoming the highest scoring freezer we’ve tested in a long time. The auto-defrost system worked so well that our experts couldn’t spot any condensation or icing within the cabinet, even after several months of using the freezer.'

Dawn Stockell, Marketing Manager at Electrolux Major Appliances comments, 'We are delighted with the report – and the high scores in temperature stability, ease of use and defrost. Research from Electrolux shows that consumers overwhelmingly identify defrosting as the biggest problem with owning a chest freezer; with around 50% of consumers listing it as the ‘task they most dislike’. The new range of frost free models, which includes the ECS3070, puts an end to this tedious chore'.

Caption: Electrolux has launched Three ‘Frost-Free’ Chest Freezers – the ECS2070 (203litre capacity), ECS2370 (234l) and the ECS3070 (the largest at 305l).

AME Designs User-Focussed Sinkware Collection for Astracast

Sheffield-based industrial design consultancy, AME Design has devised the new Echo range of stainless steel sinks for kitchen sink, tap and accessory manufacturer Astracast (part of the Jacuzzi group).

AME approached the design from the perspective of consumers, initially realising the Echo concept while conducting a research investigation into changing trends within the home, and the subsequent impact it places on the kitchen environment.

The Echo range encompasses the Echo 1.0 bowl and 1.5 bowl, sinks designed and developed with consumer lifestyles central to the process. The Echo brings together spacious bowls with drainer facilities that quickly and effectively disperse liquids. An Aquature overflow drainage area is recessed to prevent surface run off and with the off-centre taps, serves to maximise the food preparation area. These combined features serve to create an engaging user-experience and efficient kitchen environment.

To complement the stainless steel sink development, the consultancy also created a range of premium accessories to complete the Echo range. The accessory packs for the sinks include a Grid, Chopping Board, and Colander complete with holder. The final design solution adopted a systems based approach to the brief.

Lee Taylor, Design & Innovation Manager at Astracast commented:
'AME Design provided Astracast with a number of fresh concept designs for a family of new steel sink products. We selected the Echo design concept and engineered it internally, it was important that we maintained the details of the original concept through to production. Their understanding of consumer needs and ability to understand our design problem, whilst providing a stylish and practical solution was our motivation for working with them'.

Chris Gurr, Head of Design at AME said:
'Approaching design from the perspective of the consumer is essential. Following our research we realised that the demand for a stylish but practical kitchen workspaces was unfulfilled. Using our findings we developed a range of concepts and the Echo stood out as the product that caters for kitchen users’ needs in a way that no previous product has quite managed to achieve.'

The Astracast collection is available at http://www.astracast.co.uk. The Echo 1.0 is priced £249 and the Echo 1.5 is £259. The accessory packs retail at £75 (all prices are RRP).

Web: http://www.ame-design.co.uk

D.A.D Announced as First UK Distributor of Mistral Range of Small Domestic Appliances

Domestic Appliance Distributors (DAD Ltd) is the first national distributor of the Mistral range of small domestic appliances.

As from August, DAD will distribute the mid-market range, which includes espresso machines, kettles, toasters and sandwich toasters, to independent electrical retailers across the UK.

Guy Weaver from Mistral, comments, ‘We are thrilled to announce that DAD is the first UK distributor of the Mistral range and we are sure that the products will prove to be popular as they offer retailers top quality and style at an affordable price. Utilising Mistral’s cost-effective sourcing, we aim to ensure that retailers and consumers get the best deal on the market.’

For distribution enquiries, contact DAD Ltd on 01452 504545.

Introducing Opticolour - The New Alternative to Tiles

Opticolour is a new range of toughened glass walling from Interior Glass Solutions (IGS).

This new alternative to tiles is available in a range of colours and effects and is completely waterproof. It’s easy to clean and involves no grouting (so it doesn’t suffer from dirt and mould), and can be further enhanced with lighting.

IGS’s process solves the adhesion problem of bonding to glass. Once the glass has been cut, processed and toughened, the rear is colour-coated with a specially blended formula: and the glass is attached to the wall using adhesive.

Because the Opticolour glass is thoroughly toughened it’s highly resistant to impact and heat; and is safe to use for sink and oven splash-backs. Other applications include; kitchen, shower and bathroom walls (wet rooms), architectural features in restaurants, pubs, shops, office reception areas, and nightclubs both inside and outside.

See http://www.opticolour.co.uk for more details or call 01225 446629
(Single splash-backs can be purchased by mail order).

De Dietrich Extends its Free Six Pan Offer for Purchases of Touch Control Induction - and now Vitro

Following a successful response to its initial promotion, De Dietrich has extended its free six pan offer on all touch control induction as well as vitroceramic hobs until 30th September 2005.

The six pans come in stainless steel with safety glass lids. The collection includes milk pan, saucepans and double handle casserole dishes and a large flat bottomed frying pan. All pans are suitable for induction and vitroceramic cooking.

For application forms for the free saucepan promotion, please contact your local De Dietrich Area Sales Manager or visit http://www.dedietrich.co.uk.

New Design Focus for Burbidge

Burbidge has recently undergone an in-depth review and improvement programme in conjunction with The Design Council.

Ben Burbidge, managing director, comments: ‘We recognise that the kitchens industry is very much a 'fashion-led' and as such we need to ensure we are in the best position to reflect upcoming fashion trends in the kitchens and bedrooms we design.

‘We actively pursued the opportunity to take part in the Design Immersion Programme, run by the Design Council, in order to take a good hard, and most importantly, an unbiased look at our existing design strategies and processes and identify ways in which we could improve.’

A DTI initiative that's been running for three years, the Design Immersion programme aims at supporting British design by sharing product design expertise. Open to UK manufacturers producing consumer products across all areas of design - be it kitchens, boats, bathrooms, crockery, furniture etc - the DTI initiative is recognised as a very valuable business development tool.

Ben Burbidge continues: ‘This is a respected and highly sought-after programme within the design industry and with hundreds of companies trying to secure a place, it was an honour for Burbidge to be among the handful that were selected to take part.’

The programme, which ran from June 2004 until March 2005 involved an appointed mentor from the Design Council working together with Burbidge to review design methodologies and develop improvement strategies. The recommendations for improvement were then presented by Burbidge to the Design Council for approval.
Burbidge's mentor was David Raffo, a designer with 30 years experience who founded award-winning design consultancy Raffo Design, who has designed products previously for companies such as Fisher Price, Unilever, JCB and Ideal-Standard and who today designs and creates innovative home products which are sold through John Lewis and Heals.

Ben Burbidge says: ‘David helped us take a broader view of design, finding inspiration from everyday events. He has encouraged us to be more open minded, suggested new ways of generating ideas and helped us look at how to justify design decisions. Together we have been able to identify new ways in which to spot trends at an early stage and use them to influence creativity.’

Burbidge is now in the process of implementing a variety of changes aimed at further strengthening its design capabilities. Not only is the company looking at expanding the 'formal' design team with new personnel, it is also encouraging all members of the product development team, not just the designers, to be involved in the creative process through the introduction of an 'inspiration room'. With the aim of getting 'under the skin' of consumers, Burbidge is asking team members to bring any designs, images and objects that inspire them - not limited to kitchens - for display in the room which will be used for creative brainstorming sessions.

It has developed a new design model that all Burbidge kitchen and bedroom designs must meet in order to be valid for further development and, rather than designing and launching products at the beginning of each year, it will be developing and introducing new products on a continual basis throughout the year, responding more quickly to emerging trends.

Burbidge is a UK kitchen frontals and accessories manufacturer. For further information on the company's range of wood, painted, foil wrap and metal frontals and accessories, visit http://www.burbidge.co.uk or call 024 7667 1600. Burbidge's products can also be viewed in realistic room sets in the company's showroom at its Coventry manufacturing facility. The showroom is open five days a week between 9am and 5pm.

Blum: Innovations Generate Impulses for Growth

The 2004/2005 business year of Julius Blum GmbH finished on 30th June. It was characterised by the consistent cultivation of international markets and the added value of new products. Gerhard E. Blum, managing director and co-owner of the manufacturer of fittings, told representatives of the business press in Hoechst, Austria, that Group turnover amounted to 821.1 million euros (in comparison to 694.2 million euros in the last financial year). This operating result is mainly due to the widespread acceptance of Blum innovations that are designed to perfect the opening and closing action of furniture doors and drawers. According to Blum, the demand for user-friendly fittings systems that facilitate work has risen perceptibly on markets all over the world. The Group has increased its turnover by successfully cultivating markets in Europe and by opening up more and more important markets overseas.

Sales and market structures offset risks
The Group that operates on an international scale has profited from the cultivation of a well-developed, international market structure with a broad spread. As a result, risks have been offset in large economic areas with varying economic situations. The company is one of the market leaders in its branch and serves more than 80 markets on all continents. The EU is Blum's largest economic area and accounts for 53% of its turnover ahead of the USA with 21%. A turnover of 26% was attained on all other markets.

Numerous new jobs were also created through the increase in turnover. On average, the Blum Group employed 4,190 persons in the last business year (in comparison to 3,878 in the previous year). On 30th June 2005, the number of persons employed in the Vorarlberg was 3,248. Turnover per employee rose to 196,000 euros (it was 179,000 euros in the previous year).

Blum trains a large number of apprentices. At the start of the 2005/2006 vocational training year it will be 210 trainees in total.

These young people will learn high-tech trades within the framework of Blum's dual vocational training scheme which enjoys international renown.

Continuous commitment to investments
Blum's corporate policy is characterised by ongoing, future-oriented investments in markets and products. Investments in the 2004/2005 not only included expansions to plants, warehouses and production systems at Works 2, 4 and 5 in the Vorarlberg but also financed the integration of former coatings company Plangger into the Blum Group. The plant will operate under the name of Works 6. Major investments were also made in the expansion of production facilities and warehouse capacities at Blum's overseas organisations in the USA and Brazil. A new and prestigious office building with showrooms and meeting rooms was also built at Blum's subsidiary in Germany. A logistics centre is currently being built in Poland.

Material prices on the rise
Following the extremely high price increases which we had to cope with last year, the price of raw materials rose again at the start of 2005. But there are signs that the price of steel is easing off and that it will stabilise even if it remains very high.

Successful implementation of marketing philosophy
The ‘Dynamic Space®’ concept, which was successfully launched as a marketing philosophy for furniture - particularly kitchen furniture - by Blum in 2003, has meanwhile established itself on the market. The concept of a better quality of motion and space usage is in keeping with the trend towards high-quality kitchen equipment and has met with a very good response from customers and partners alike.

New product line: lift systems
The Group's product range, which has, to date, comprised hinge, drawer and pull-out systems, will be complemented with ‘Aventos’ lift systems for wall cabinet doors as of the start of the new business year. Following a successful première at Interzum, the international fair for suppliers of the furniture industry in Cologne, the new business segment will ensure that all kinds of wall cabinet fronts open and close with utmost ease.

Guarded optimism
The Group started the new business year on 1st July 2005 with guarded optimism. The world economic situation is expected to stabilise in the 2005/2006 financial year. Against this backdrop, the Group will work in a targeted manner to consolidate its market position as a specialist of fittings. The volume of investments in the new business year will be similar to that of previous years and will comprise necessary extensions to production plants and the launch of Aventos.

The Blum Group is a family-owned business that is committed to the location of its headquarters in the Vorarlberg and to the location of its plants in Lowesville, North Carolina, and in Sao Paulo, Brazil. It believes that it is well equipped to supply its products to markets worldwide. The company, which was established by Julius Blum in 1952, has been passed on to the second generation and is today run by sons Herbert and Gerhard E. Blum and Hubert Ploner.

Web: http://www.blum.com

Emerson Achieves Third-Quarter 2005 Earnings Per Share of $1.00

Emerson announced on August 2nd that net income for the 2005 quarter ended June 30th, 2005 totalled $358 million, or $0.86 per share, an increase of 6 percent versus the prior year period. The results included a tax charge of $58 million, or $0.14 per share, related to the one-time opportunity during 2005 to repatriate approximately $1.3 billion at a favourable tax rate under the American Jobs Creation Act. Excluding the effect of the charge, net income for the 2005 quarter totalled $416 million, or $1.00 per share, a 23 percent increase from the $0.81 per share earned during the comparable 2004 period.

For the quarter, net sales increased 11 percent over the prior year to $4.5 billion. Sales were up in all segments except Climate Technologies. Underlying sales were up over 4 percent for the quarter, excluding the impact of exchange rates (2 percent) and acquisitions (over 4 percent).

'Emerson’s third quarter results prove that our strategies are working, as we again delivered double digit increases in sales and operating profit,' said Emerson Chairman and CEO David N. Farr. 'Our continued focus on strategic technology investments allows us to better meet our customers’ needs, anywhere in the world. This is a winning formula that has and will continue to drive results.'

For the nine months ended June 30th, 2005, net sales were $12.7 billion, an increase of $1.2 billion, or 10 percent over the prior year. Pretax earnings for the first nine months were $1.5 billion, or 12.1 percent of sales. This represents a 60 basis point improvement over the same period last year as sales volume leverage, sales price increases, and productivity improvements overcame significant cost increases due to commodity inflation. Net earnings per share increased 12 percent to $2.39 for the nine months ended June 30th, 2005. Excluding the third quarter 2005 cash repatriation charge of $58 million, earnings per share increased 18 percent over the prior year period.

Balance Sheet / Cash Flow:
Operating cash flow in the quarter was $606 million compared to $755 million in the third quarter of 2004, which included a tax refund of $140 million from the company’s divestiture of Dura-Line. Free cash flow for the quarter was $488 million, which exceeded net income in the quarter. 'Emerson’s ability to generate substantial free cash flow while still investing capital in our core businesses demonstrates our commitment to operational efficiency and working capital management. Our full year target for capital spending is unchanged at approximately $500 million, and we remain committed to the full year targets of $2.1 billion of operating cash flow and $1.6 billion of free cash flow,' Farr said.

The company continues to focus on operating capital efficiency as evidenced by the ratio of trade working capital to sales, which improved from 19.2 percent in the prior year quarter to 18.9 percent in the third quarter of 2005. Additionally, the company improved average ‘days-in-the-cash-cycle’ to 73 days in the third quarter from 76 days in the prior year period.

Operating Highlights:
Emerson’s strong sales and earnings performance was led by the Process Management segment, which achieved sales for the quarter of $1.1 billion, or 15 percent over the third quarter of fiscal 2004. 'The strong sales performance was driven by increased demand in the energy markets we serve, particularly power, and oil and gas,' Farr said. Segment margins for Process Management increased to 17.4 percent for the quarter from 12.9 percent in the 2004 period due to operating leverage on the sales growth and benefits of prior cost reduction efforts.

The Industrial Automation segment also posted strong results with sales of $826 million for the quarter, up 11 percent from the third quarter of 2004. 'Global power generation needs continue to drive demand for our alternator business and domestic industrial demand is also helping results for much of this segment,' Farr said. Operating margins for the segment were 14.4 percent compared with 13.2 percent in the prior year period.

The company’s Network Power segment delivered another solid quarter with sales of $838 million, a 25 percent increase, which included 16 percent from acquisitions, compared to the third quarter of fiscal 2004. This segment has also benefited from very strong demand in the large AC power systems business, driven by demand in the computing markets the company serves and the cooling requirements of the systems that are being installed.Compared to the same quarter last year, segment margins for Network Power increased slightly to 11.7 percent as sales volume leverage offset margin dilution from the Marconi power acquisition made in late 2004. Compared to the second quarter of 2005, margins for this segment improved sequentially 170 basis points reflecting increased profitability in the Marconi power business.

The Climate Technologies segment sales were down 4 percent on tough comparisons to the third quarter of 2004 and cooler weather in the United States in April and May of 2005. Climate Technologies operating margins declined to 15.6 percent from 17.1 percent on the lower sales volumes.

Sales for the Appliance and Tools segment increased 9 percent during the quarter to $1.0 billion which included nearly 5 percent from acquisitions. Higher commodity costs and the dilutive impact of acquisitions dropped segment margins 60 basis points to 13.8 percent. Cost reduction programmes have been put in place to help recover this profitability.

Full Year Earnings Outlook:
'We have seen continued order strength through June, particularly due to favourable market dynamics in Process Management, Industrial Automation, and Network Power. Based on this order strength and the strong performance for the first three quarters of the year, we have increased our expected fiscal year 2005 earnings per share to the range of $3.45 to $3.50,' Farr said. Including the tax impact of repatriating the $1.3 billion of foreign earnings under the American Jobs Creation Act, the new guidance is $3.31 to $3.36.

Upcoming Investor Events
On Tuesday, August 2nd, 2005, at 2:00 p.m. EDT (1:00 p.m. CDT), Emerson senior management discussed the third-quarter fiscal 2005 results during an investor conference call. All interested parties were able to listen to the live conference call via the Internet by going to the Investor Relations area of Emerson's web site at http://www.gotoemerson.com/financial and completing a brief registration form. A replay of the conference call will be available for the next three months at the same location on the web site. Details of upcoming events will be posted as they occur in the Investor Relations Calendar of Events on the corporate web site.