W&D Weekly - March 26, 2008 | Vol 3, Num 13
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Accu-Weld/Ultra Hardware Parent Files for Chapter 11
Shapes/Arch Holdings LLC has filed for Chapter 11 bankruptcy protection, although the company asserts that the move is merely a reorganization that will leave it with a stronger financial
footing...
Shapes/Arch Holdings LLC has filed for Chapter 11 bankruptcy protection, although the company asserts that the move is merely a reorganization that will leave it with a stronger financial footing. CEO Steven Grabell told Window & Door on March 20 that it has been “truly business as usual” despite the filing.
“We have the financing in place, and we’ve filed a plan with hopes to exit [bankruptcy] by the second quarter,” Grabell said. “This process works, and will allow us to reorganize. In the meantime, orders are still shipping; we’re still doing business with the same creditors.”
Based in Pennsauken, N.J., Shapes/Arch operates four manufacturing subsidiaries: Accu-Weld LLC, the vinyl window and door manufacturer based in Bensalem, Pa.; Shapes LLC, an aluminum extruder; Ultra Hardware Products, the window and door hardware supplier, and Delair LLC.
The company pointed to the lagging economy for its financial troubles in an article in the Philadelphia Inquirer. The report noted that Accu-Weld had been hit by weakness in the housing market, while profits at Ultra Hardware, which imports products from China, are down as a result of higher prices abroad.
Grabell acknowledged that customers and vendors were initially wary upon hearing news of the Chapter 11 filing. “The only thing we have to do now is manage vendor and customer relations. Lots of folks are concerned, but they’re seeing that we’re going to emerge much healthier, with more balanced finances.
“We did everything we could leading up to the filing,” Grabell added. “We are very well positioned; this is about as productive as the process can be.”
Associated Materials Reports Increased 2007 Window Sales
Associated Materials Inc., manufacturer of Alside, Alpine, Gentek and Revere products, reported an overall decrease in sales for its 2007 fiscal year, but also pointed to a slight increase in its window sales...
Associated Materials Inc., manufacturer of Alside, Alpine, Gentek and Revere products, reported an overall decrease in sales for its 2007 fiscal year, but also pointed to a slight increase in its window sales. In its latest financial report, the company notes that while volumes remain unchanged, window sales increased from $411 million in 2006 to $418 million for 2007.
The company saw its overall 2007 sales slip 3.7 percent to $1.2 billion, which it attributed largely to decreases in vinyl siding. “Looking back at 2007, I am very pleased with our performance, which was noteworthy given the current state of the domestic housing market and the U.S. economy as a whole,” notes Tom Chieffe, Associated Materials president and CEO.
The company remains bullish on the window market. According to a March 13 presentation made at an investor conference hosted by Lehman Brothers, Associated Materials sees vinyl windows offering “major growth opportunities,” pointing to its relatively small share of what is still a fragmented marketplace. The company also points to installed sales as a “major strategic opportunity,” although it adds a caveat that this type of program must be rolled out slowly.
Garage Door Expo Set for Next Month
Produced by the International Door Association, the 2008 International Garage Door Exposition will be conducted April 22-26, in Las Vegas...
Produced by the International Door Association, the 2008 International Garage Door Exposition will be conducted April 22-26, in Las Vegas. Expected to draw 6,000 industry professionals, the event is directed primarily to those who sell, install and service door and access systems, including residential garage doors and operators, commercial doors and operators, fire doors, and gates and gate operators.
About 200 companies are expected to exhibit at the trade show, which is expected to cover about 200,000 square feet, and the event will also feature a variety of social and educational sessions.
Seminars will cover a broad range of business and management topics. For those targeting the residential garage door business, the event will feature a preview of the next five years in the market. John Zoller & David Bowen of Zoller Consulting Inc. will examine the factors that influence garage door demand, trends and developments; as well as regional variances and shifts in market share.
Pat Lohse of Clopay Building Products will lead a session on selling high-end, design-based products and how to increase profitability by making a concerted effort to sell quality and aesthetics. Dave Ziegenhorn of the Garage Door Co. of Sikeston (Mo.) will offer a session focusing on using glass in garage doors to add more sizzle.
Representatives of the Door and Access System Manufacturers Association, representing garage door manufacturers, will also host a number of sessions. Noami Angel, DASMA counsel, will offer a liability seminar with scenes from a mock trial to help dealers better prepare themselves in today’s litigious environment. Joe Hetzel, DASMA technical director, will also offer an update on the growing number of windload requirements for garage doors in building codes.
The headquarters hotel is the MGM Grand. All educational sessions will be conducted there, with the exhibits to be housed at the Las Vegas Convention Center. Complimentary transportation will be provided to and from the MGM Grand and Las Vegas Convention Center. For registration or exhibit information, go to: www.doors.org
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The Core Problem is Falling Home Prices
from Nation's Building News
Revisions in the gross domestic product (GDP) revisions for the fourth quarter of 2007 left the overall economic growth rate at a meager 0.6%, but the estimated contraction in residential fixed investment deepened to a 25.2% annual rate and RFI subtracted a whopping 1.25 percentage points from the GDP growth rate... read more
WDMA Comments on Energy Star Changes
from Window and Door Manufacturers Association
Download the PDF here.
Census Bureau to Stop Collecting Remodeling Data
from Nation's Building News
The U.S. Census Bureau recently announced that it will cease collecting data for its quarterly reports on the amount spent on improving and maintaining residential structures in the U.S. The last published residential improvements and repairs data will be released on May 1 for the fourth quarter of 2007... read more
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