W&D Weekly - November 28, 2007 | Vol 2, Num 47
(Print All Articles)
Simonton Closing Georgia Plant
In response to the housing market, Simonton Windows is planning to close its Lyons, Ga., plant and relocate production lines...
In response to the sustained downturn in the housing market, Simonton Windows is planning to close its Lyons, Ga., plant and relocate production lines for its impact-resistant vinyl coastal products to the company’s McAlester, Okla., operating site. Production at the Georgia facility is expected to end sometime in December.
“We evaluated the production capacity at our facilities nationwide and determined that there were long-term efficiencies to be gained by consolidating operations,” says Mark Savan, Simonton president. “Our Oklahoma facility has the space and manpower to incorporate the existing coastal product line business. In addition, we previously manufactured our impact-resistant products at our McAlester facility before we opened the Lyons location several years ago. We remain committed to our impact-resistant product line and are confident that this change will help continue to position us competitively in the marketplace during this housing downturn.”
In addition to Oklahoma, the vinyl window manufacturer continues to operate manufacturing plants in West Virginia, Illinois and California. The company plans to evaluate the potential sale of the 220,000-square-foot Georgia facility, with the majority of equipment at the plant to be transported to Oklahoma. The 180 employees at the Georgia facility will be offered severance packages and assistance with job placement when operations cease.
“We’re focusing a good deal of attention on supporting and assisting people to find jobs in the Georgia marketplace,” adds Savan. “We understand this decision impacts the lives of many people in the Lyons community. Unfortunately, the housing industry is experiencing a downturn that has severely affected the business of all building product manufacturers. The result at Simonton is that we’re consolidating production facilities to maximize efficiency.”
Atrium to Close Branches in Florida
Shifting from builder-direct to traditional distribution, Atrium is closing five sales and distribution branches...
Shifting its business model in Florida from a builder-direct to a traditional distribution channel strategy, Atrium Cos. Inc. reports it is closing five of its six sales and distribution branches between now and the end of first quarter 2008. The company will maintain its Davie, Fla., operation and continue to operate its Atrium Shutters business from that location.
“With housing starts in Florida dropping by 70 percent in the last two years, we believe our long-term reach to the market is best served by focusing sales efforts through independent distribution,” states Bob Burns, Atrium chief operating officer. “Challenging market conditions across the U.S. and particularly in Florida have required us to make adjustments to our current business model. With this change to our Florida infrastructure we are well positioned to meet short- and long-term sales plans moving forward.”
The first branches to transition will be Ft. Myers, Vero and Orlando. The last two will be Tampa and Jacksonville. The realignment will affect the current workforce. “While this decision is necessary to keep in line with the company’s operational strategy and continuous need to address a shifting market, we regret it anytime when operational adjustments result in displacing employees,” states Burns.
Quanex Spins Off Building Products Business
As a result of a strategic review, Quanex Corp. will spin-off its Building Products business...
Following a strategic review announced earlier this year, Quanex Corp. will spin-off its building products business as a stand-alone company. The new Quanex Building Products includes window and door industry suppliers Mikron Industries, Truseal Technologies and Homeshield.
The structural change is not expected to affect the day-to-day operations of these companies, notes Gus Coppola, Truseal president. “Let me assure you that customers will not see any change in their relationship with Truseal as we transition to the new structure,” he says. “You can expect this to be a seamless process that ensures customers will continue to receive the same high-quality products and service that they have come to expect from us. Looking ahead, we are very excited about what this change in structure means for Quanex Building Products. As a company concentrating purely on the Building Products space, we will be even more focused on bringing customers new and value-added products and enhancing customer service levels. We will also have the financial strength to ensure that we can weather various market cycles and continue to grow our business in attractive ways within the residential construction and remodeling markets.”
“We spent considerable time evaluating strategic alternatives and have determined this is the best course of action, as the businesses will benefit from greater strategic focus and capital flexibility, offer exciting opportunities for employees, and deliver compelling value for shareholders,” says Raymond A. Jean, Quanex chairman and CEO. “As we have said previously, our vehicular products and building products businesses have different capital costs, processes, products and end markets, and we have concluded that these businesses will be better positioned for success as separate companies.”
According to a slide presentation presented to shareholders and now posted to the company’s Web site, the new Quanex Building Products will aim to “expand [its] residential footprint,” adding new products such as solar panel components and composite window profiles, as well as expanding existing product lines, which currently include Mikron’s PVC profiles, Homeshield’s screens, grilles and door thresholds and Truseal’s IG spacer systems.
The company also plans to pursue “fenestration adjacencies” including exterior residential building products like roofing, siding, decking and railings, and interior products like venting, cabinets and stairs.
The new Quanex Building Products also plans to look at more integrated marketing programs, such as blending Truseal’s new Enviro-Sealed program to Mikron’s offerings, it is noted.
The transaction is expected to close in the first quarter of 2008. The new Quanex Building Products will be listed on the New York Stock Exchange.
Therma-Tru to Shut UK Plant, New President
Takes Reins
Citing overall market conditions and a comprehensive review of its United Kingdom business, Therma-Tru has announced its intention to close a 52,000-square-foot facility it operates in Wales...
Citing overall market conditions and a comprehensive review of its United Kingdom business, Therma-Tru has announced its intention to close a 52,000-square-foot facility it operates in Wales. More than 150 jobs will be eliminated as a result of the closure.
Therma-Tru's new president, David Randich
“While we have made considerable progress with rigorous cost-cutting and operational improvements over the past year, the outlook for the long-term viability of the business remains poor,” Carl Hedlund, president and CEO, told BBC News. “Even with rigorous cost controls, operational improvements, and exiting money-losing channels, the business continues to deliver negative rates of return.”
In other company news, David Randich was named president and will succeed Hedlund, when he retires at the end of the year.
Randich joins the company from Armstrong World Industries Inc., manufacturer of floors, ceilings and cabinets, where he spent 24 years in a variety of leadership roles including his most recent position as CEO of the company’s floor covering business in Europe.
“We welcome Dave and pledge our fullest possible support to him as he prepares to assume his new responsibilities,” says Rich Forbes, president and CEO of Therma-Tru’s parent company, Fortune Brands Home and Hardware. “He is a fact-based team builder who is passionate about building brands through delivering quality products and service to customers. His extensive experience in various markets and product categories with multiple supply chain configurations prepares him very well to lead Therma-Tru.”
Should You Be in the 2008 Top 100?
Window & Door is finalizing our 2008 Top 100 rankings and we want to make sure our annual presentation of the 100 largest window and door manufacturers in North America, based on sales volume, is as accurate as possible...
Window & Door is finalizing our 2008 Top 100 rankings and we want to make sure our annual presentation of the 100 largest window and door manufacturers in North America, based on sales volume, is as accurate as possible. If your company would like to be considered for these prestigious rankings, let us know. Click here find out more.
- Home Depot's Third Quarter Results Decline
from centremagazine.com - As New Home Sales Stall, Deals Abound
from Yahoo! Finance
...
Home Depot's Third Quarter Results Decline
from centremagazine.com
The Home Depot reported fiscal 2007 third quarter consolidated net earnings of $1.1 billion compared with $1.5 billion in the same period in fiscal 2006. Sales for the third quarter totaled $19 billion, a 3.5 percent decrease from the third quarter of fiscal 2006, reflecting negative comparable store sales of 6.2 percent, offset in part by sales from new stores... read more
As New Home Sales Stall, Deals Abound
from Yahoo! Finance
On Nov. 20, the residential real estate industry seemed to finally get an unexpected dose of much-needed good news. After four consecutive months of declines, the number of new homes being built crept up by a stronger-than-expected 3% in October, according to the Commerce Dept. But on closer look, the October numbers may just be an aberration. Building permits, an indicator of future construction, plunged 6.6% as homebuilders faced mounting inventories of unsold homes and sluggish demand from buyers... read more