Vol. 6, No. 15 – July 16, 2007

 

 

The Home Depot Announces Agreement to Sell HD Supply

 

ATLANTA, June 19, 2007 /PRNewswire-FirstCall via COMTEX News Network – The Home Depot®, the world's largest home improvement retailer, today announced that its board of directors has approved strategic measures to enhance shareholder value. These measures include entering into an agreement to sell HD Supply

 

Sale of HD Supply

 

In February 2007, The Home Depot began a strategic review of HD Supply, the Company's wholesale distribution division, in an effort to increase the Company's focus on its core retail business. After a thorough review of alternatives, the board unanimously approved the sale of HD Supply to private equity firms Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice for $10.3 billion. Subject to certain regulatory requirements and contingencies, the sale of HD Supply is expected to close in the third fiscal quarter of 2007. The transaction is not conditioned upon financing.

 

"Today's decision reflects our continued commitment to enhancing shareholder value, through an exclusive focus on our retail business and the return of cash to our shareholders. This year alone we will spend over $2 billion in support of our top five retail priorities. We are confident in the ability to improve productivity in our retail business through investment in these priorities, which will further enhance returns on invested capital as the investments take hold," said Frank Blake, chairman and CEO.

 

The board of directors also authorized a $22.5 billion increase in its share repurchase program. It is the Company's intent to repurchase up to $22.5 billion in shares as soon as practicable. The Company will fund the $22.5 billion share repurchase with the net proceeds from the sale of HD Supply, existing cash on hand and the net proceeds from an anticipated $12 billion issuance of senior unsecured notes. The $22.5 billion share repurchase may be in the form of a tender offer, open market repurchases or accelerated share repurchases, the details of which will be announced at a later date.

 

DRM WORKSHOPS – DEADLINE EXTENDED!

 

Plan now to attend one of the MLA Designated Risk Management Workshops on Wednesday, August 15 in Wichita, or Thursday, August 16 in St. Louis. You really don’t want to miss this program!

 

The workshops will be filled with valuable information designed to increase profitability and improve employee safety. This program will show you how to reduce operating costs and control insurance increases. The registration fee is just $50 per person.

 

Sign up right away to assure your place: Federated Insurance risk experts will prepare a loss history analysis and action plans designed specifically for your company. This benefit is available regardless of whether or not you are currently a Federated Insurance policyholder. While results will vary, statistics show that companies participating in this training have reduced losses as much as 30 percent and improved their insurance expense accordingly.

 

To register, please complete and return a registration form today. (Either call MLA at 800-747-6529 – or go to http://www.themla.com/MLA-DRM2007.pdf.)  Don’t pass up this opportunity to learn tried-and-true ways to effect savings in your business.

 

 

MINIMUM WAGE POSTER AVAILABLE

 

As you know, the federal minimum wage will go up to $5.85 per hour effective July 24, 2007. By law, you are required to post the “Fair Labor Standards Act” in a conspicuous location accessible to employees. There is no need to purchase a new “all in one” poster – simply click on this link: http://www.dol.gov/esa/regs/compliance/posters/flsa.htm  The Act and the rules pertaining to it are explained there, and you can click on the appropriate link to print either a black-and-white or color version of the law.

 

If you are in Missouri, the state minimum wage went up to $6.50 per hour on January 1. Since this is higher than the new federal wage, the Missouri minimum wage prevails. You still need to post both the federal minimum wage poster and the Missouri minimum wage poster. The Missouri poster is available at this link: http://www.dolir.mo.gov/ls/minimumwage/52-AI.pdf

 

If you have any questions or concerns, please don’t hesitate to contact the Association office.

 

  

 

 

 

            

JOIN INDUSTRY LEADERS AT THIS YEAR’S INDUSTRY SUMMIT – OCTOBER 4-6, 2007    
 

This year’s theme, The 16% Solution, will focus on how you can maximize your value in builders’ eyes through creativity, operational excellence and most of all, the ability to focus on your builder’s bottom line without losing sight of your own. The 2007 Industry Summit will explore the key areas you need to focus on to capture market share and maximize your profitability by making builders more efficient. Dealers are the solution — that is the bottom line!

 

Join us at the beautiful JW Marriott Resort & Spa and explore all Las Vegas has to offer. MLA’s own Harold Baalmann, B&B Lumber, Wichita, Kan., will become NLBMDA’s Chairman at this event.

 

Participate in the Industry Golf Tournament at Angel Park, scenic tours and network with your LBM industry peers. For more information and to register today, go to www.dealer.org!  

 

 

LUMBER NEWS – QUICK GLIMPSES

 

Census Announces Most Populous Cities… The list of the top 10 most populous U.S. cities remained relatively unchanged with the exception of Phoenix, which leapfrogged over Philadelphia in the top five, according to annual data (pdf) released by the U.S. Census Bureau on Thursday. The estimates are based on Census 2000 population counts and updated with information from building permits and other estimates of change.

 

The report also revealed the country's fastest growing cities (pdf) with North Las Vegas, Nev. topping the list; the largest population increases (pdf) from 2005 to 2006, led by Phoenix; and the largest population decrease (pdf) from 2005 to 2006. New Orleans, still reeling from the aftermath of Hurricane Katrina, suffered the biggest loss - 50 percent of their population.

 

Source: Builder Business On-Line Update, July 3, 2007

 

No Strike for Now for BC Forestry Workers… This has been a tense weekend for thousands of British Columbia's coastal forestry workers waiting to hear whether they will be going through with plans to strike.

 

The United Steelworkers filed a 72-hour strike notice early last week, which was to have taken effect this past Saturday morning. Union negotiators decided to call a temporary halt to strike plans late Friday night.

 

Source: LBM Daily, July 9, 2007

 

Weyerhaeuser Sells Oregon Mill… On Monday, Weyerhaeuser Company announced that it had agreed to sell its Springfield, Oregon plywood mill to Pacific States Industries, Inc., based in San Jose, CA. The Springfield mill has been closed since December 2006.

 

Source: LBM Daily, July 10, 2007

 

Home Prices Expected to Recover in 2008 as Inventories Decline… Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors®.

 

Source: National Association of Realtors, July 11, 2007

 

New Yard in Greensburg… John Humphreys has announced that Home Lumber & Supply, Ashland, Kan. is looking to open a permanent facility for building material products in the stricken town of Greensburg, Kan.  Humphreys indicated that as soon as FEMA has the current situation more stabilized, that he will proceed with the development of such a facility. 

 

 

IN MEMORIAM

 

It is with sadness that we report the death of long-time manager and employee Leroy Bowen, Home Lumber Co., Plains, Kan. on May 16 after a long bout with cancer. Leroy had worked for Home Lumber since 1949. He took over management of the Plains store in 1966 and retired in December 2006. His son, Tim, was also in the lumber business for a period of time. In addition to his son, Mr. Bowen is survived by a daughter, Kimberly, seven grandchildren and a great-grandson. 

 

 

A Matter of Timing

 

Prompt Claims Reporting Can Enhance Service

 

Here are some helpful tips: 

• Designate one person to report claims promptly to our claims office.

• Take pictures of your building, both inside and outside before a loss. Include computer equipment, stock and any tools or specialized equipment. Store the photos away from your business premises and update them yearly or as major changes occur.

• Document sales, purchases and expenses to help determine values in a business income loss.

• Record vendor agreements, dates of sales, products sold and dates of repairs to help in product liability claims.

• Keep receipts for equipment and tools to verify age and costs of items.

Set a procedure for reporting workplace injuries and help your employees understand why these steps will help reduce claims expenses and lost time.

 

Source: Federated Insurance

 

This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer.

MLA is proud to endorse….

 

 

THOUGHT FOR THE DAY