Around the Industry - September 7, 2012

Sept. 6, 2012
General Cable completes acquisition of Alcan, HD Supply sales increase, Dynalectric wins LA port contract and more.

General Cable completes acquisition of Alcan Cable

General Cable Corp., Highland Heights, Ky., completed the acquisition of the North American portion of Alcan Cable for $151 million. The North American portion of Alcan Cable represents approximately 85% to 90% of overall Alcan revenues. The company expects to complete the acquisition of the Alcan business operating in China for $34 million in a separate and subsequent closing before the end of 2012. The company estimates that Alcan business will contribute approximately $650 million to $700 million in annual revenues at current aluminum prices.

"Expanding our product portfolio through an enhanced aluminum-based cable offering further strengthens the value proposition to our electrical distributors and utility customers alike. The addition of aluminum rod and strip manufacturing provides vertical integration benefits as well as a new segment of valued OEM customers," said Gregory Lampert, president and CEO of General Cable North America.

HD Supply reports 9.8% increase in its 2Q 2012 sales

HD Supply Inc., Atlanta, reported net sales for the fiscal 2012 second quarter of $2.1 billion, an increase of $184 million, or 9.8 percent, as compared to the second quarter of fiscal 2011. Gross profit for the second quarter of fiscal 2012 increased by $61 million, or 11.4 percent, to $594 million compared to $533 million for the second quarter of fiscal 2011. Gross profit for the second quarter of fiscal 2012 was 28.8 percent of net sales compared to 28.4 percent of net sales for the second quarter of fiscal 2011.

Dynalectric/EMCOR wins contract at Port of Los Angeles

EMCOR Group Inc., Norwalk, Conn., said its Dynalectric subsidiary has been awarded a contract for the installation of alternative maritime power (AMP) and crane cable for the Port of Los Angeles at Terminal Island, Calif.

Dynalectric will install underground electrical distribution, medium-voltage switchgear, and associated civil work for 15 AMP (6.6 KV) outlets at the Port. Instead of running on diesel power while at berth, AMP equipped ships "plug in" to a shore-side electrical power source resulting in reduced emissions while docked. AMP technology is often referred as "cold ironing" and has been used for naval vessels, Baltic ferries, and cruise ships operating in Alaska. The Port of Los Angeles is the first port in the world to use AMP technology for in-service container ships.

NEMA Lighting Systems Index enjoys solid gain in 2Q 2012

The National Lighting Bureau (NLB), Silver Springs, Md., reports that second-quarter 2012 NEMA Lighting Systems Index (LSI) performance gained almost 3% over first-quarter 2012's performance and 6.6% over second-quarter 2011's. NLB Executive Director John Bachner hailed the data as "cause for continued optimism, especially so because all five categories of lighting systems products tracked by the Index registered solid gains compared to the second quarter of 2011."

Established in 1998, NEMA's LSI is a composite measure of luminaires, ballasts, miniature lamps, large lamps, and emergency lighting shipped nationally and internationally from the United States by the 450 companies that are part of the National Electrical Manufacturers Association (NEMA). Adjusted for the season and inflation, the Index uses 2002 data for its 100-point benchmark. Check it out at www.nlb.org/Index.

Rexel launches a new employee share purchase plan in 16 countries

Rexel, Paris, has launched a new employee share purchase plan. Employees in 16 countries will have the opportunity to acquire shares in the plan, named Opportunity12 (1). This new employee share purchase plan is the third such plan launched by Rexel following offerings in 2007 and 2010.

NAHB says multi-family market showed good growth in 2Q 2012

The Multifamily Production Index (MPI), released by the National Association of Home Builders (NAHB), Washington, D.C., improved for the eighth consecutive quarter with an index level of 54. It is the highest reading since the second quarter of 2005. The MPI, which measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100, rose from 51 in the first quarter to 54 in the second quarter.

"Multi-family production has already recovered substantially from a historic low of about 110,000 starts a year in 2009 and 2010 to the current annual rate of a little over 200,000,said NAHB Chief Economist David Crowe. "However, prior to the downturn multi-family starts remained about 300,000 per year for 12 consecutive years, so there is room for further improvement before apartment and condo production return to normal, sustainable levels."

IKEA plugs in solar array at Minnesota store

IKEA officially plugged in solar panels installed at its Twin Cities store in Bloomington, Minn. The 142,000-square-foot PV array is the largest photovoltaic array in Minnesota and consists of a 1,014 kW system of 4,316 panels. This installation is IKEA's 31st completed solar project in the United States. The company has eight more PV installations underway at its U.S. stores and says the total amount of power generated by its U.S. stores will reach 38 MW.