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Manufacturer News: 12.27.2011

Published 12/27/2011 11:22:54 AM

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Emerson Electric’s Sales Report

Emerson’s monthly filing with the U.S. Securities and Exchange Commission (SEC) on sales trends reported company-wide sales of 0 to +5% for the three months ending in September, +5% for the three months ending in October, and a 0% sales gain for the three months ending in November.

For the Industrial Automation segment, in the same months, Emerson reported +5%, 0 to +5%, and 0 to +5%. The company said Industrial Automation saw “favorable trends in the electrical distribution and ultrasonic welding business…partially offset by weakness in the wind and solar energy business, as governments around the world reduce renewable energy subsidies. Currency exchange rates deducted 2 percentage points.”

Two of Emerson’s five segments, Network Power and Climate Technologies posted negative sales results for the November three-month period. Emerson’s numbers in 2011 generally have been uniformly positive; see for example, this SEC filing on March-April-May results.

Emerson’s stock (symbol EMR), which ended November at $52.25, closed Friday, Dec. 23, at $46.29, a decline of more than 11%. In the same weeks, the S&P 500 index increased by nearly 1.5%.

Purchases and Acquisitions

Belden buys: Belden made an all-cash offer to acquire the Canadian company RuggedCom Inc. A news release said the total purchase price would be 280 million Canadian; the exchange rate recently has seen $1 U.S equal to 1.02 or 1.03 Canadian. RuggedCom is said to be “a global leader in signal transmission solutions for mission-critical applications.” On Dec. 16, the price of RuggedCom stock, as traded in Canada, was $13.61, putting the Belden offer at an 87% premium.

Eaton acquires: Eaton Corporation has agreed to acquire medium voltage switchgear manufacturer E.A. Pedersen Company. Details of the deal were not released and the agreement is subject to closing conditions. E.A. Pedersen, which does business as Pedersen Power Products, is expected to have sales of about $37 million this year; Eaton’s 2010 sales came in at $13.7 billion. E.A. Pedersen currently has about 150 employees.

In a company news release, Rich Stinson, Eaton’s president, Power Distribution, Electrical Sector for the Americas Region, said, “The acquisition of Pedersen Power Products will strengthen Eaton’s medium voltage assembly business by adding important utility-oriented power products and custom engineering capabilities for our U.S. markets.”

Schneider Electric acquires: Schneider Electric added to its “data center suite” with the acquisition of Viridity’s EnergyCenter 2.0 platform, according to a GreenBiz.com blog.

Recent Honors

Beacon Power: A 20MW flywheel energy storage plant in Stephentown, N.Y. has won the 2011 Technology Award from the Energy Institute of the UK. Separately, Beacon Power’s stock was delisted by NASDAQ; it now trades on the “pink sheets.”

CommScope: The company’s LxS-16016 wideband edge QAM was the only one of more than 40 products to receive a perfect score from Broadband Technology Report in the 2011 “Diamond Technology Reviews.”

Cooper Industries: The Patent Board recently named the company the Top Innovator on its Industrial Components & Fixtures Scorecard.

Echelon Corp. took home an Export Achievement Award from the U.S. Department of Commerce.

GE: The data center at the GE’s Appliance Park headquarters in Lexington, Ky. was awarded LEED Platinum.

Honeywell: Based on a survey of homeowners, Frost & Sullivan named Honeywell as “Overall Best Brand of Programmable Thermostats” in the United States.

Leviton: With 560 products submitted to Building Operating Management magazine for its annual “Top Products Award” competition, Leviton’s SectorFlex Intelligent Digital Lighting Control System was named a winner. It’s the third year in a row that Leviton has had a product honored by the magazine’s readers.

Worldwide Power Products: Houston-based maker of power generation equipment, Worldwide Power Products, was named one of “America’s Most Promising Companies” by Forbes magazine. The company ranked No.86 out of 100.

WAC Lighting’s Sol OLED (organic light-emitting diode) chandelier won a Product Innovation Award from Architectural Products magazine.

Charitable Efforts

Emerson Electric provided a $1 million grant to The Magic House, a children’s museum in the St. Louis area, to make it possible for them to “continue its popular Free Family Nights program,” according to the St. Louis Business Journal.

Schneider Electric representatives recently marked the groundbreaking of the fourth Habitat for Humanity home sponsored by the company in Oconee County, S.C., according to the Anderson Independent-Mail.

Financial Notes

Atkore International Holdings, owned by Clayton Dubilier & Rice, having been sold off by Tyco International, revealed its FY2011 results—net sales up 15% to $1.65 billion.

The company’s Electrical and Infrastructure operation had $934 million in sales, up 18%. Of that $143 million year-over-year sales increase, the company said in a news release, $88 million “is related to higher average selling prices for both electrical steel conduit and armored and metal-clad cable products in North America.”

Brady Corp:. Q1 of FY2012 ended for Brady Corp. on Oct. 31 with sales up 6.09%, to $349.5 million. Organic sales rose 5.7% in the Americas region. In the quarter, Brady repurchased $12.3 million of its stock.

Communications Systems: The yield on Communications Systems’ stock, plus insider buying, earned notice from DividendChannel.com (in a posting to Forbes.com). The dividend yield, 4.49% at the time, was down to 4.40% by Dec. 23.

Cooper Industries’ stock (symbol CBE) was recently added by Standard & Poor’s to the S&P 500 index.

© 2012 The Electrical Distributor. All rights reserved.

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