5/21/2012 10:56:00 AM
NEWS BRIEFS
H. Paulin Adjusting Its Growth Strategy
H. Paulin reported sales increased rose 4% to $139.3 million during 2011, while operating income rose 21% to $5.45 million and net income gained 23% to $3.9 million.
Full-year earnings per share gained 22.6% to 1.19.
Distribution sales grew 6% to $120 million. The growth was attributable to increased industrial OEM sales (primarily in the agricultural market), as well and industrial distributor business tied to the energy and natural resources markets; double-digit growth in the automotive aftermarket as a result of the introduction of new products and market share growth; and new product introductions for the retail hardware market.
“Growing competitive pressures in the industrial distributor market from U.S. competitors combined with higher levels of direct importing by some distributors negatively impacted the growth within this market,” the company stated in its annual report.
Manufacturing sales dropped 1% to $30.2 million, reflecting several automotive OEM parts being eliminated due to platform build-outs, a more competitive marketplace and Paulin’s strategy “not to pursue new low margin automotive business.”
“Our manufacturing segment continued to progress in 2011 making a small profit and reducing their dependence on the automotive market.”
Since 2007, this segment has reduced sales to the automotive tier 1 and 2 suppliers by over $15 million.
Export sales increased 3% to $13.1 million in 2011.
Investments in the distribution business, which included racking, warehouse equipment and building leaseholds, decreased by $765,000 in 2011, while investments in the manufacturing segment declined by $120,000 to $204,000. The main areas of 2011 spend were on production machinery.
In 2012 Paulin expects to focus on sales to OEMs and the automotive aftermarket. ©2012 GlobalFastenerNews.com
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