News @ The GL@ZINE

Hunter Douglas Q3 Results Show 22.6% Higher Profits on Sales up 7.5%

Hunter Douglas, the world market leader in window coverings (Luxaflex®), and a major manufacturer of architectural products (Luxalon®) reports its results for the first nine months of 2005.

Sales were EUR 1,404.2 million, 7.5% higher than EUR 1,306.1m in the first nine months of 2004. The sales increase is attributable to 4.5% volume increase, 1.1% negative currency impact and 4.1% increase from acquisitions. All geographic areas had organic growth except Australia, where sales were level.

North America accounted for 49% of sales, Europe 38%, Latin America 4%, Asia 6% and Australia 3%. Window Coverings represented 89% and Architectural and Other Products 11% of total sales.

Net profit was EUR 118.8 million, 22.6% higher than EUR 96.9 million in the first nine months of 2004. Net profit per average outstanding common share increased to EUR 2.84 compared with EUR 2.31 in the first nine months of 2004, adjusted for stock dividends.

Income from operations was EUR 164.3 million, 15.1% higher than EUR 142.7 million in the first nine months 2004. In local currencies, income from operations was higher in all areas, except in Australia where profit was somewhat lower. The negative effect on income from operations from the weakening of the US dollar compared with last years' nine months average was EUR 3.3 million.

Acquisitions during the first nine months were: Blöcker, a German based distributor of pleated blind systems, Century Blinds, a Southern California based fabricator of window coverings, Aveno, an Atlanta, Georgia based fabricator of window coverings, Paris Texas Hardware, a Texas based marketer of decorative drapery hardware and 91.8% of Mermet, a French based manufacturer of glass fiber sunscreen and wall covering fabrics. The current annualized sales of these operations are approximately EUR 125 million.

Third Quarter 2005

Q3 sales were EUR 495.1 million, 12.7% higher than EUR 439.3 million in the same period last year. The increase reflects a 6.5% volume increase, 0.9% positive currency impact and 5.3% contribution from acquisitions. Organic sales were higher in North America and Latin America, level in Europe and Asia and lower in Australia.

Q3 net profit was EUR 71.4 million, 79.4% higher than EUR 39.8 million in the third quarter of 2004. Net profit per average outstanding common share increased to EUR 1.73 compared with EUR 0.94 in the third quarter of 2004, adjusted for stock dividends.

Q3 income from operations was EUR 71.2 million, 27.6% higher than EUR 55.8 million in the third quarter of 2004. In local currencies, income from operations was higher in all areas, except in Australia where profit was level. The negative effect on income from operations from the weakening of the US dollar compared with last years' third quarter was EUR 0.6 million.

Sales in Europe increased by 5% to EUR 532 million. The sales increase reflects 1% volume increase and 4% contribution from acquisitions.

Sales in North America increased by 11% in dollars of which 5% was attributable to acquisitions. Sales in Euros increased 8% to EUR 682 million, reflecting a 6% volume increase, 3% negative currency impact and 5% contribution from acquisitions.

Sales in Latin America were EUR 63 million, 31% higher than in the same period last year. The sales increase reflects 25% volume increase and 6% positive currency impact.

Sales in Asia were EUR 79 million, 7% higher than in the first nine months of 2004. The sales increase reflects 8% volume increase and 1% negative currency impact.

Sales in Australia were EUR 48 million, 7% higher than in the same period last year. The sales increase reflects 3% currency impact and 4% contribution from acquisitions.

Hunter Douglas is optimistic about the outlook for the operations for the rest of the year.

Assa Abloy Q3 - Clear Improvement in Europe

Assa Abloy's Group sales in the third quarter totaled SEK 7,019 M (6,447), an increase of 9% compared to previous year. Organic growth was 5%. Translation of foreign subsidiaries' sales to Swedish kronor had a positive effect of SEK 184 M due to changes in exchange rates. Newly acquired companies contributed 1% to sales.

Sales for the first nine months of 2005 totaled SEK 20,272 M (19,263), which represents an increase of 5%. Organic growth was 4%, and acquired companies contributed 1%. Exchange rates affected sales positively by SEK 1 M compared with the equivalent period in 2004.

Operating income before depreciation, EBITDA, for the third quarter amounted to SEK 1,317 M (1,189). The corresponding margin was 18.8% (18.4).

'Our strategic initiatives are beginning to produce results, chiefly in the form of increased sales and margin in EMEA,' comments President and CEO Bo Dankis. 'The report is truly a sign of strength which constitutes a solid foundation for continued good development.'

The Group's operating income, EBIT, amounted to SEK 1,103 M (965) after positive currency effects of SEK 25 M. The operating margin (EBIT) was 15.7% (15.0).

For nine months to September, operating income before depreciation, EBITDA, amounted to SEK 3,662 M (3,456).

The corresponding margin was 18.1% (17.9). The Group's operating income, EBIT, amounted to SEK 3,015 M (2,763) after negative currency effects of SEK 5 M. The operating margin (EBIT) was 14.9% (14.3).

Income before tax for the third quarter was SEK 969 M (838), including positive currency effects of SEK 12 M due to translation of foreign subsidiaries. Income before tax up to September was SEK 2,633 M (2,397), including negative currency effects of SEK 1 M.

The Group's tax charge for the quarter totaled SEK 263 M (221), corresponding to an effective tax rate of 27% (26) on income before tax.

Earnings per share for the third quarter amounted to SEK 1.89 (1.65). Earnings per share up to September totaled SEK 5.13 (4.76).

Operating cash flow for the quarter, excluding costs of the restructuring program, amounted to
SEK 1,190 M - equivalent to 123% of income before tax - compared with SEK 1,082 M last year. Operating cash flow up to September totaled SEK 2,552 M (2,349).

The two-year action program initiated in November 2003 will be completed during the fourth quarter. Cost savings are projected to reach SEK 450 M a year by end of 2005. Savings of around SEK 95 M were realized during the third quarter of 2005. In the year so far, payments totaling SEK 157 M relating to the action program have been made. 1,200 of the 1,400 employees becoming redundant have now left the Group.

Sales for the third quarter in the EMEA division (Europe, Middle East and Africa) totaled EUR 295 M (282), with 4% organic growth. Operating income amounted to EUR 45 M (40) with an operating margin (EBIT) of 15.2% (14.2). Return on capital employed amounted to 15.6% (14.4). Operating cash flow before interest paid totaled EUR 59 M (67).

Scandinavia, the United Kingdom, Israel and eastern Europe are generating strong organic growth. Sales trends in France and Italy improved during the quarter. The structural measures that have been implemented are producing savings as planned. Higher sales volumes are having beneficial effects on income but are being offset by higher selling costs.

Organic sales growth in 2005 is expected to continue at a good rate. The operating margin (EBIT) is expected to rise for the full year, mainly due to savings resulting from the restructuring program. Excluding payments relating to restructuring, the strong cash generation will continue.

Long term, ASSA ABLOY expects an increase in security-driven demand. Focus on end-user value and innovation as well as leverage on ASSA ABLOY's strong position will accelerate growth and increase profitability.

Custom Extruder Aurelia Plastics Goes Bust

In the Birmingham High Court on November 4th, Witney based Aurelia Plastics Ltd (Company No 00880985) was put into the hands of Joint Administrators John Neville Whitfield and Gerald Clifford Smith, both of RSM Robson Rhodes of Birmingham.

The Oxfordshire firm was established over 40 years ago and moved to a 5,700 sq metre site on the Witney Industrial Estate in 2003. It operated 14 extrusion lines and was a key supplier of ancillary parts to the PVC-U window and door industry.

Founded in 1967, Aurelia Plastics specialised in a wide range of components for the window and door sectors, an extensive range of profiles included external cills, rigid and flexible angle profiles, glazing beads and bay/bow window solutions.

The Acceptor Plus Cavity Closer System and Auratec Eaves Protector were widely specified for the new build window and roofing sectors respectively.

Aurelia also produced both round and square tubing for a variety of commercial applications, and had extensive experience and expertise in extruding larger than normal profiles (up to 400mm).

Glaverbel's EnergyNT Wins Innovation award at Batimat

Glaverbel EnergyNT won a Silver Medal at the 2005 Innovation Awards organised by Batimat, the largest construction show in Europe. The awards ceremony, held at the Hôtel de Ville in Paris on 7 November 2005, was attended by the judges, French construction professionals and the city's deputy mayor.

Denis Ramboux, Product Manager Float & Coatings Glaverbel, receives the award

EnergyNT coated glass combines enhanced thermal insulation and solar protection. The vacuum-applied coating can be toughened by processors, making this innovative product the first 'ready-to-toughen' coated glass combining these two functions to hit the marketplace. The key benefit for processors is that they can use their own toughening furnaces, thus slashing turnaround times.

Since EnergyNT has the same neutral appearance as non-toughenable EnergyN, both glasses can be used in the same façade if required. In terms of performance, EnergyNT offers excellent thermal insulation of up to 1.1 W/(m2.K) and enhanced solar protection of up to 42% depending on the assembly (i.e. 58% of the heat produced by the sun's rays are bounced back to the outside world). A wide variety of processing methods can be also be used on EnergyNT, including bending and silk-screen printing.

'This award confirms the value of the innovation policy we have been pursuing for many years - especially in coated products,' said Glaverbel CEO Arthur Ulens. Since its launch just a few months ago, EnergyNT has already been used in several major projects, including Riverside II in Dublin, Warsaw airport and Ikea in Gdansk, Poland.

British Plastics Federation Looks to the Future

With the plastics industry set to encounter a new set of challenges, the British Plastics Federation (BPF) - organised seminar for board level management: ‘Plastics, The Industry Of Tomorrow’ is well timed.

The seminar, taking place on Thursday 8th December at Holywell Park, Loughborough focuses on the future of the plastics industry with a 2-5 year time horizon. Expert speakers have been secured covering a range of topics including plastics manufacturing, legislation and changing materials technology. In addition there will be a special focus on the automotive, healthcare, construction and packaging market sectors.

The plastics industry has been rocked by steep rises in material prices and energy costs and the loss of some key customers to receivership and relocation. The consolidation of the polymer producers has yielded major changes to the supply chain. However, the sector in the UK remains strong with over 5000 firms processing plastics and with material usage increasing year-on-year. Nearly 25 per cent of all plastics products manufactured in the UK are destined for export markets.

Philip Law, Public and Industrial Affairs Director at the BPF said:

'Plastics, The Industry Of Tomorrow’ seminar will address, head-on, key concerns within the plastics industry. In the compass of one day delegates will be exposed to a range of future scenarios and will be provided with the tools to plot their way to a successful future for their firm. UK companies in this industry are world leaders and our intention is to help them consolidate that position'

Details here: http://www.bpf.co.uk/bpftools/Plastics_The_Industry_Of_Tomorrow.cfm

Radiance Glass says that it has become the first branded and trademarked solar control glass in the UK to incorporate Pilkington Activ™ Blue within the unit.

Radiance says it has already proven successful with a range of specialist conservatory roof glass and now this is set to be enhanced, with the introduction of Activ™ Blue within the unit. Managing Director, Bob Lilley explains: ‘we have spent a lot of time and effort in developing Radiance Activ™ and we now believe that we have the most advanced and cost-effective conservatory glazing solution in the market.

‘The Activ™ technology is activated by the sun and water and has proven to be particularly effective in keeping conservatory roofs free from dirt, grease and grime. Certain other manually applied self-cleaning coatings only work during rainfall, but Radiance Activ™ helps break down organic dirt whatever the weather.

‘The success of Radiance is set to continue with incorporation of Activ™ Blue within the portfolio. Further investments at Radiance Glass to ensure a 5-7 day turnaround and delivery direct to site, is further evidence of a pro-active and professional approach for the supply of specialist conservatory glass throughout the UK.’

Tel 01373 464051
Email: info@radianceglass.co.uk

Trade Lynks installer support scheme manager Andy Ball believes hundreds of window companies are unaware that the law has changed concerning financial services and could be breaking it every time they introduce a policy or help homeowners fill out paperwork, unless they have Financial Services Authority (FSA) authorisation.

To help out, Trade Lynks has teamed up with multi-trade association Fairtrades to offer customers preferential rates on the reputable, FENSA-backed, HomePro insurance-backed guarantee (IBG) scheme and 50 per cent discount on Fairtrades membership.

As Fairtrades members, installers can use the logo on literature and vans, plus gain a share of the £20 million worth of business enquiries HomePro & Fairtrades generate annually. Members also benefit from cheaper Yellow Pages advertising and have access to a conciliation service.

Andy Ball says: 'HomePro is FSA authorised, allowing the company to generate an instant, FENSA approved policy without the installer having to complete complicated paperwork or potentially fall foul of new regulations. And, unlike some offshore policies, HomePro offers adequate protection for both contractor and homeowner.

'Our partnership with Fairtrades is in response to requests from our members asking for a quality IBG scheme to give peace of mind for their customers. It's a good example of the practical business and marketing support we bring to Trade Lynks members, designed to help grow their businesses.

Steve Roberts, HomePro account director, says: 'Window installers are there to sell product, not fill out forms. We make life easier by offering benefits like a 48 hour turnaround on customer deposit guarantee certificates.'

Trade Lynks is funded by Profile 22 Systems and is free to join. Other services it offers include next day free delivery on retail brochures and an in-house design studio to help members project a professional image to their customers.

To find out more about Trade Lynks and HomePro/Fairtrades please contact the Trade Lynks team on Tel: 0870 950 4500 or visit the website: http://www.tradelynks.co.uk

The installation of new solid carbide special and standard tooling designed and manufactured by Tewkesbury based H&B Quickgrind has produced productivity improvements in excess of 100% at Bredon based Stanway Screens Ltd.

Stanway Screens is one of the UK's leading designers and fabricators of easy fit door and window systems for holiday homes and caravans and has recently instigated a capital investment programme that has seen the installation of an Elumatic SBZ615 combined saw and router and a fully automated Rotox assembly line.

While happy with the performance of the Elumatic saw and router combination, Production Director at Stanway Screens Tristan Priest was looking for more throughput and felt that improvements in the tooling set up might help. Ross Howell, a director of H&B Quickgrind and a long standing tooling supplier to Stanway Screens was asked for an expert opinion.

Quickgrind has been supplying specialist cutting tools to the PVC and aluminium fabrication industry for many years and the company says that its abilities to design and rapidly manufacture bespoke tools to suit a fabricator's specific needs has earned it a strong reputation.

‘As the profiles are very soft in cutting terms tool life is not an issue but cutting speeds and high quality surfaces finishes are,’ explains Ross Howell.

‘Having invested in the company’s new machinery, Stanway Screens was looking for very fast throughput, particularly when the seasonal increase in volumes occurs,’ he adds.

After assessing the company’s individual needs, Ross recommended the manufacture of a range of specially designed solid carbide tools and in fact of the 24 tools in the saw, 15 of them are specials, many being dual function. Use of these tools enables Stanway Screens to load the tool magazine with cutters that can accommodate every operation passing through the saw without needing operator intervention to change tools.

On the combined router/saw, operations such as machining out the lock boxes, drilling handle locations and ventilation voids are all undertaken for the total Stanway range. For the 2006 new season, a completely new window design has been developed and with volumes expected to be substantial, optimising every minute of production capacity will be all important.

Cutting and routing programmes are installed into the Elumatic on disc but the elimination of the tool changes has greatly increased flexibility.

As Tristan Priest explains, ’prior to installing the Quickgrind tools we were processing maybe 40 doors a day. Now, that figure is closer to 100 and we have improved quality as well increased the throughput’ he adds.

‘Prior to changing to Quickgrind tools we were experiencing tool breakages, burr build up was a problem and we could not operate at the Elumatic's fastest speeds for fear of damage when the tools chattered.

‘Now those problems are a thing of the past and as part of our next phase in investment on the Rotox line, we will undoubtedly install Quickgrind tools to optimise the machine's capacity,’ he concludes.

Tel: 01684 294090
Email: ross@quickgrind.com

South West fabricator, Britannia Windows (UK) Ltd, has signed 4 new trade accounts in the last 8 weeks as it begins a major sales and marketing drive in the South West.

The recruitment of industry stalwart, Laimons Berzins (pictured) with over 25 years trade sales experience, complements Britannia's 25 years in fabrication as one of the longest established companies in the South West, to make a winning offer that makes commercial sense.

‘I couldn't think of a better offer to sell right now’ says Laimons ‘and the chance to join Britannia at such an exciting time is one I just couldn't ignore.’

Managing Director Hayden Rushton explains ‘We've spent nearly 18 months and £800,000 investing in product, people and machinery, to make sure we can deliver day in day out a truly exceptional, reliable product and service that stands out. We now have probably one of the most automated manufacturing facilities in the South West, and have the capacity to grow our business further. That's very much the Britannia way. Don't shout about something until you know you can deliver. It's a formula that works for us and our customers. We will always work to offer our customers a real difference to sell.

Britannia says that it has worked hard to make the next 25 years as successful as the one the company has already enjoyed.

‘Investment in a Stuga machining centre, a Hollinger 8 head welding machine, a Rotox six axis corner cleaners clearly illustrate our commitment to manufacturing excellence.’

With state of the art software to improve tracking and quality, new branding and powerful direct mail campaigns to promote the new Britannia this is a fabricator that says it truly has something new to shout about and is keen to get its message across.

'Britannia believes firmly that though the market may be tough, if you've got a good product, a great offer and a unique story to sell you'll always stay one step ahead of your competitors.'

Independent Manufacturer Demonstrates the Superiority of Bystronic Glass Equipment

Euro Sealed Glass Units Ltd is an independent sealed unit manufacturer based in Middlesex, which says that it is setting new standards in the architectural and domestic market after making a substantial investment in Bystronic Glass equipment.

The £1/2 million Bystronic installation at the company has already increased output and enabled the company to further diversify its product range. The state-of-the-art IG line with robotic sealing enables Euro Sealed Glass Units to produce larger sized sealed units for curtain walling and for larger conservatory roof projects.

Key benefits of the Bystronic equipment allows the company to produce units up to 1 tonne in many various shapes and sizes.

Euro Sealed Glass Units Ltd has an established reputation and with this investment in Bystronic equipment, intends to improve the on-site efficiency at the firm.

The fully automatic IG production line with a capacity for units up to 2.7 x 4,2 metres was tailored especially by Bystronic Glass to cope with the production of larger units needed for the commercial market.

This installation is one of the largest of its kind within the M25 and the equipment was chosen by senior management at the company because of the superiority of the Bystronic brand. Dinesh Patel Managing Director at Euro Sealed Glass Units Ltd considered technical investment at the company of vital importance because of the new market regulations. The level of investment was substantiated after a visit to Bystronic Glass headquarters where design, engineering and product performance were demonstrated.

Mr Patel comments, ‘This company has developed a reliable standing throughout the UK and with this installation we intend to further raise our standards. We approached Bystronic because of the formidable reputation the company has in the market, knowing we could achieve excellent results with the machinery.’

‘We are now in a position to increase production and diversify the products available knowing that we can attain consistently high standards for our customers at a realistic cost. With superior products such as the Bystronic washing machine we can now handle soft coated glass also which will add to the range and help to strengthen our market position.’

Steve Powell, Managing Director, Bystronic Glass UK comments; ‘Bystronic Glass aims to provide customers with efficient, tailor-made solutions. We look forward to continuing our working relationship with Euro Sealed Glass Units Ltd at an exciting time in their corporate development programme.’

Bystronic Glass: Steve Powell/Alan Linsdell, 01952 677971

Freefoam Plastics, a manufacturer of quality approved environmentally friendly roofline and rainwater systems, recently announced the expansion of its UK operations to include a new production facility at the company’s Northampton premises.

Ongoing company review of service levels and overall performance indicators report a sustained level of service and satisfaction amongst customers at this time of significant growth for the company which says it is striving to become the No.1 in Roofline.

Following the £3m investment in plant, equipment and resources, production operations are already up and running on a 24/7 basis to service the growing demand for Freefoam products in the UK market.

Colin St John, Operations Manager, comments on the benefits for existing Freefoam customers, ‘The cornerstone of our service offering has always been to have supply hit rates amongst the highest in the industry, constantly striving to nudge them upwards. The opening of our production plant in the UK facilitates even greater flexibility and scope to improve our responsiveness to our customers' changing needs.’

The facilities in Northampton now occupy an area of 8,000 m2 and house manufacturing, distribution and customer service operations.

For more information, contact Freefoam directly on 01604 759871 in the UK, 021 4911055 in Ireland, or email marketing@freefoam.com

Web: http://www.freefoam.com

Machinery manufacturer, Haffner GB Ltd is helping fabricators to update their manufacturing equipment by offering a part-exchange option on their existing machinery.

Under the part-exchange scheme, Haffner will 'set' a price for the existing piece of equipment and off-set that cost, by way of part deposit, against the new piece of Haffner machinery. This allows fabricators to update their equipment more easily, without having to place such a large upfront deposit.

The scheme, which is running for a limited period of time, is proving to be popular with fabricators. Dave Thomas, Managing Director of Stone-based Haffner GB said: ‘The part-exchange scheme is a flexible plan to allow customers to upgrade quicker without having to put down such a big deposit. We realise that investment in high-quality fabrication machinery is a tremendous expense but a necessity to manufacturing businesses. To repeat the exercise when a machine has reached the end of its serviceable life, is a cost that nobody likes to face. Under our part-exchange scheme we are offering a flexible option to upgrade to a new piece of equipment by using your existing machinery as part of the deposit. Put simply, if a new machine cost £200,000 and the existing machine had a part-exchange value of £15,000, by putting down an initial £10,000 payment you have paid a £25,000 deposit off the price.’

The part-exchange scheme is available on all Haffner's machinery including welders, routers, corner cleaners and the SBA cutting and machinery centre.

For further information on the Haffner part-exchange scheme call Dave Thomas on 01785 814032.

In addition to the growth in sales of its new Paladin range of composite GRP and Steel doors, Cheltenham's Portal Products is also reporting sustained growth in its core business of PVC-U door panels, due in no small part to the introduction of new inverted panels to the range.

Now, 25 per cent of PVC-U panels Portal manufactures and sells are from the inverted designs.

Having invested in top of the range vacuum-forming dies and equipment to produce the traditional-look inverted panels on-site, Portal says that it has been receiving praise from fabricators and installers alike.

'People seem to appreciate the aesthetic and practical benefits of inverted panels,' said Haydon Statham, sales and marketing manager, 'and our customers tell us the quality and definition of mouldings on our panels is second to none.

'Using the very best quality PVC-U skins and employing rigorous quality control mechanisms means we are able to produce panels with an exceptional attention to detail.'

Produced onsite at Portal Product's Cheltenham factory, inverted PVC-U panels are available in five different designs with a number of woodgrain and glazing options, including Portal's own bespoke glass design service. The inverted panels are available alongside Portal's expanding range of PVC-U panels and Paladin composite GRP and Steel doors.

For a Portal Products 'lifestyle' brochure, or to request further information on Portal's panels, doors and glass, please contact Portal Products on Tel: 01242 267000 or visit the website: http://www.portal-products.co.uk

According to Admiral Windows & Conservatories, in a ‘back to the future’ turnaround, the demand for timber windows and conservatories is on the increase.

While PVC has been the homeowner’s choice for over 15 years, Huntingdon-based, Admiral Windows & Conservatories reports an overwhelming demand for timber and has introduced new ranges of quality soft and hard wood for windows, conservatories and doors.

‘Given the recent increase in customer demand, it appears that timber has made a return to centre-stage as more people are choosing wood over plastic when replacing windows or building conservatories,’ explains Steve Thorogood, Managing Director of Admiral Windows & Conservatories.

‘After 15 years of taking wooden frames out of properties and replacing them with PVC, we are now taking out the plastic and replacing with timber - although this product is much superior to the timber that would have been used a few years ago.’

As environmental awareness also grows, customers are becoming more educated that timber is the only construction material that can be classed as truly renewable and sustainable when sourced from well-managed forests, which might be another reason for its increased popularity.

Admiral Windows & Conservatories is holding a special Open Day on Thursday 24th November between 1pm – 4pm for architects, conservation officers and the public to view the latest trends in timber products.

http://www.admiralconservatories.com/contact.htm

'Few profile bending companies can boast of having expanded their sales over the last twelve months,’ says Paul DeGiorgio, Managing Director of Universal Arches Ltd.

‘Indeed the recession has bitten deeply into the construction industry as a whole, and many companies are now feeling the adverse effects.’

Paul however, says that he is not one of the individuals affected. ‘Our sales of core products have been maintained over the last 12 months due to one single factor. Indeed we are still gaining approximately 15 new customers every month. We have stopped selling, and our main aim now is to help our customers. Most customers feel isolated in our increasingly competitive arena, where price appears to be the only vehicle by which they can obtain the contracts.’ As Paul says ‘We have discovered over the last few years many cases, where customers desperate to obtain orders, have purchased the cheapest possible product and then been let down badly when the manufacturer failed to perform adequately.

‘Our approach is value for money rather than lowest price, and within this concept we have identified a number of key customer needs.

‘Cost - The price paid for the product is only part of the total cost of the integrated installation.

‘There is no point in obtaining profile bends a few pounds cheaper, and then having your onsite teams waiting for days because of failure to deliver on time by the manufacturer. This is why, in the last 12 months, we have introduced our Rapid Response Team. Specifically generated to help those installers whose current suppliers have failed them at these most critical times when they are onsite and about to install the product.

‘It takes a great deal of courage to change suppliers mid contract, but contractors who have changed to Universal Arches during last year have found our performance has exceeded their expectations.

‘The new innovative response concept came directly from our philosophy of helping customers, by assisting them when other people walked away. This is probably the reason why we have maintained our core product sales through the last 12 months of a difficult trading period’.

‘Quality and Total Service - Increasingly the quality of the finished product is becoming paramount with end users. People are no longer prepared to accept ill fitting, out of shape or defect ridden profiles on their installation. Universal Arches' record in terms of quality performance, is probably the best in the industry.

‘Acknowledged nationally, as shown in our recent award of being recognised as one of the top small to medium business enterprises in the UK. But quality by itself is of little value to the client if there is no organisation behind the manufacturing delivery systems.

‘Universal Arches is unique in that the company has ISO 9001 accreditation together with the Investors In People award, this ensuring every supplier and each of its products are processed through the company’s modern factory in a systematic efficient fashion, to reduce costs and improve quality at competitive prices. Our objective is superior quality. The best is never the cheapest and what counts when the chips are down us whether or not your supplier is prepared to go the ‘extra mile’.’

So as Paul points out, the company has changed from a selling organisation to a helping organisation.

‘The first question we ask of any innovation we introduce into our company is - Will the change help our customers perform better?

‘Will this help them improve their profits?

‘Will this help improve their performance in front of their customers?

‘This new philosophy is now bringing in 15 new customers every month and is perhaps a key reason why Universal Arches has not experienced the downturn currently plaguing our competitors.’

Universal Arches is very confident about the future. ‘It is always necessary to respond to your customers' needs rather than just selling to them what you have made. Every one of our current customers has a range of needs. Our success is that we have put together a dynamic organisation with a key philosophy of ‘How can we help, not what can we sell?’

Tel: 01744 612844
Email: paula@universalarches.com

Profitable Growth is PPGs Primary Mission, Chairman Says

PPG Industries’ Chairman and Chief Executive Officer Charles E. Bunch told analysts and investors today that the nearly $1 billion in cash from operations the company has generated on an annual basis is 'being put to work, helping us to generate profitable growth, which is our company’s primary mission.'

Last month PPG reported record third-quarter sales, marking the 10th consecutive quarter of year-over-year sales records. Bunch said aerospace products, architectural coatings, optical products and Asia coatings are generating strong sales growth, with volume increases in these businesses contributing nearly $600 million in sales, or about 6 percent, since 2003.

Just as important, the four businesses are key drivers of earnings growth, Bunch said at a meeting conducted here by the company.

PPG’s aerospace business has logged double-digit volume gains the past six quarters. Architectural coatings has doubled the size of its company-owned store network since 1999 to more than 330 stores, adding 50 stores in the past 12 months.

Meanwhile, optical products has grown sales at a compound rate of 17 percent per year since 2002. And PPG’s coatings sales in Asia now account for nearly 10 percent of the company’s total coatings sales, with margins comparable to those for PPG’s entire coatings segment.

PPG generated about $5 billion in cash from operations from 2000 to 2004, spending approximately $1.5 billion during that period to retire debt. As a result, PPG’s debt-to-total-capital ratio is approximately 27 percent.

'We have only a few minor debt payments due over the next 10 years,' said William Hernandez, PPG senior vice president, finance. 'Therefore, we have considerable financial flexibility for the next decade to use our cash to create shareholder value.'

Bunch praised the company’s Lake Charles, La., workers for their efforts in restoring PPG’s largest chemicals facility, which was struck by Hurricane Rita in late September.

Yesterday the company announced the Lake Charles complex is now operating at 80 percent of capacity, with a current estimate of restoring the remaining 20 percent in the next few weeks.

Bunch repeated that the company expects hurricanes Katrina and Rita to have at least the same earnings impact on fourth-quarter results as they did in the third quarter, excluding higher natural gas prices. Last month the company reported the hurricanes had a negative impact of approximately $30 million pretax on earnings for the July-through-September period.

'Now following the hurricanes, we are being challenged once again by another round of input cost increases, primarily in the natural gas arena,' Bunch said. 'And we are working diligently, once again, to preserve our margins.'

Bunch said he believes the company is up to the challenge. 'We are proud that we have continued concurrently to generate excellent earnings and also grow the top line,' Bunch said. 'Furthermore, we expect continued sales and cash-generation growth going forward, with aerospace, architectural coatings, optical products and Asian coatings leading the way.'

Pittsburgh-based PPG Industries is a global supplier of coatings, glass, fiber glass and chemicals, with 108 manufacturing facilities and equity affiliates in more than 20 countries. Sales in 2004 were US$9.5 billion.