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Volume 54, Issue 13
July 11, 2006 |
The APPLIANCE NEWS newsletter is a copyrighted publication of Dana Chase Publications, Inc.
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| General News |
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Cont.. Candy initially invested 31 million euros (approx. U.S. $39.4 million) and will continue to invest 10 million euros (approx. $12.7 million) a year for the next several years. Under the agreement, subject to approval by the Chinese government, Candy acquired 50 percent of Jinling Electrical Co. from the Hong-Kong listed Metro-Global Ltd., and 25 percent from Jinling Group, owned by the Jiangmen Municipality, which kept the remaining 25 percent of the issued capital. Candy acquired full ownership of the brand and export rights outside China.
BSH Receives ISO Certification and Signs with Echelon
July 6, 2006. BSH Home Appliances Corp., maker of Bosch, Thermador, Siemens, and Gaggenau brand appliances, received ISO 14001 environmental certification for its appliance factories in New Bern, North Carolina, U.S. Completed in 2005, BSH?s U.S. $300 million appliance park in New Bern is comprised of factories for washers, dryers, dishwashers, ranges, ovens, cooktops, and ventilation hoods. To receive the ISO 14001 Certification, BSH undertook a 15-month process that entailed an audit of the facilities to identify anything that could potentially cause harm to the environment, the development of an environmental management system to eliminate or minimize each impact, and extensive employee training and inspections by independent environmental experts prior to certification.
In other news, BSH and Echelon Home Products signed new distributor contracts, with a term beginning on Jan. 1, 2007. Under the contract, Echelon will continue to operate as BSH?s exclusive distributor for Western Canada and the Northwestern U.S. This move is unrelated to, and does not affect, any other BSH distributor.
Electrolux Named Quality Supplier of the Year by Sears
July 6, 2006. Electrolux Major Appliances, North America was named Quality Supplier of the Year for Hardlines in the Sears Holdings 2005 Partners in Progress program. The award recognizes the overall quality of products, service and support provided to Sears by its suppliers. The Hardlines category includes Sears' major appliances, outdoor products and hardware businesses. Sears also named Electrolux Quality Supplier of the Year in the three specific categories of major appliances, technical and home services. Electrolux also received two Partners in Progress category leader awards for cooking products and home services.
Tatung to Begin Mass Production in Vietnam
June 26, 2006. Tatung Co., a Taiwan-based appliance maker, will start production at its Vietnam plant in August, with an annual output capacity of 300,000 medium- and small-sized refrigerators. Tatung said it invested U.S. $35 million in the Vietnam plant and that the products will be sold in Vietnam and exported.
Koo Wen-yang, head of Tatung?s home appliance business section, said the Vietnam plant would serve as the firm?s global production center and produce 400-L medium-sized and 120-L small-sized refrigerators. Initially, the Vietnam plant will focus on export markets such as the U.S., the Middle East and Southeast Asia. The company said its Panchiao plant in Taipei County, northern Taiwan, will concentrate on the production of large-sized refrigerators. Tatung?s Panchiao plant currently produces refrigerator compressors with annual production capacity reaching 500,000 units, in addition to electric cookers and electric fans.
Matsushita May Sell White Goods in Europe
June 27, 2006. Joachim Reinhart, head of operations
for Matsushita Electric Industrial in Europe, told
Reuters he wants to sell the company's home appliances
in Europe. In an interview with Reuters, Reinhart
said Matsushita had discussed selling its Panasonic
brand appliances in Europe but that no specific plans
have been made. Reinhart told Reuters that, if Matsushita
does decide to move into Europe with white goods,
the start-up could take as long as 2 years and the
primary competitors would be BSH Bosch und Siemens
Hausgeräte GmbH, Electrolux and Whirlpool Corporation.
Whirlpool, EPA and Edison Electric Institute Announce Home Energy Blueprint
July 5, 2006. Whirlpool, the Environmental Protection Agency (EPA)'s Energy Star Program and the Edison Electric Institute will host a search throughout the U.S. for 10 energy-inefficient homes, and will provide upgrades to help lower monthly bills while helping the environment. The program is being supported in part by Lowe's. The contest started July 4, 2006, and winners will have upgrades in place by October 2006 in recognition of Energy Awareness Month. Two winning entries will be selected from each of five regions around the country: the West, South Central, North Central, Southeast, and Northeast.
Ten selected households will receive home audits to determine which products will make their homes more energy and water efficient -- from Energy Star-qualified appliances to home sealing products -- providing a blueprint for more efficient living. With rising energy costs throughout the U.S., the program plans to demonstrate how simple, small changes in the home can add up. Whirlpool will return to the contest winners' homes 1 year later to analyze cost and energy savings.

Husqvarna to Buy Dixon Industries
July 3, 2006. Sweden-based outdoor power equipment maker Husqvarna will buy the assets of U.S.-based Dixon Industries Inc. for an undisclosed sum. Husqvarna, which Electrolux spun off and listed earlier this year, said lawnmower maker Dixon, a subsidiary of Blount International Inc., made an operating profit of U.S. $3.1 million last year on sales of $54.4 million. Husqvarna said it will move production of Dixon products to its plant in Nebraska. The acquisition is scheduled to be completed at the end of July.
Nokia Initiates Product Design Lawsuit
June 29, 2006. Mobile phone equipment maker Nokia initiated a civil litigation in Beijing, China against two companies for manufacturing and selling mobile phones that copy the proprietary and legally protected industrial designs of the Nokia 7260 mobile phone model. The two defendants are Shenzhen Telsda Mobile Communication Industry Developing Co. Ltd and Song Xun Da Zhong Ke Electronic (Shenzhen) Co. Ltd, both of whom are Chinese phone manufacturers based in Shenzhen, China. In its complaint, Nokia requests the Court to order the defendants to cease manufacturing and selling the mobile phones that copy the protected designs and pay monetary damages and costs. The lawsuit is now being handled by the Beijing No. 2 Intermediate People's Court, which accepted the case on June 12, 2006.
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| Financials |
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LG.Philips to Post Loss in Q2
July 6, 2006. Flat-screen maker LG.Philips LCD Co. Ltd. is expected to report a loss in the second quarter on crumbling panel prices. LG.Philips is expected to report on a net loss of 306.4 billion won (approx. U.S. $323.4 million) in the quarter ended in June, according to eight analysts surveyed by Reuters. This compares with a 41.1 billion won (approx. $43.4 million) profit a year earlier and a 47.5 billion (approx. $50.1 million) profit in the first quarter. Sales are expected at 2.3 trillion won (approx. $2.4 billion), up slightly from 2.03 trillion won (approx. $2.1 billion) a year ago but lower than 2.42 trillion won (approx. $2.6 billion) in the first quarter. For 2006, LG.Philips is forecast to post a net loss of 367.2 billion won (approx. $387.6 million), against a 517 billion won (approx. $545.7 million) net profit in 2005, according to analysts. The annual forecast indicates the loss will narrow to 108.3 billion won (approx. $114.3 million) in the second half.
Salton Presents Continued Listing Plan to NYSE
July 7, 2006. Electric housewares maker Salton, Inc.
announced that in accordance with the continued listing
criteria set forth by the New York Stock Exchange (NYSE),
on July 3, 2006, it presented a plan to the NYSE demonstrating
how it intends to comply with the continued listing
standards. Salton previously announced that it was
notified by the NYSE that the company was considered "below criteria" because
its total market capitalization and its shareholders'
equity were each less than U.S. $75 million over a
consecutive 30-day trading period. In accordance with
the continued listing criteria, the NYSE has up to
45 days to either accept or reject the plan. In the
event that the NYSE does not accept the plan, Salton
would seek an alternate trading market for its common
stock.
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| Global Economies |
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India's Exports Up 30 Percent in May
June 30, 2006. According to Asian Research, India's exports increased 29.6 percent in May to U.S. $9.35 billion compared to $7.22 billion in the same month last year. However, the trade deficit widened to $8.08 billion in the first 2 months of this financial year. Imports grew at 21.67 percent to $13.19 billion as against $10.84 billion in May 2005, while trade deficit grew 12.06 percent to $8.08 billion in April to May 2006. Exports during April to May 2006 rose 28.4 percent to $17.7 billion, while imports increased 22.79 percent to $25.78 billion.
Brazil May Industrial Output Increases in May
July 6, 2006. Brazil's industrial output rose more than expected in May, according to Bloomberg. Output increased 4.8 percent in May from a year earlier, after declining 1.9 percent in April, the government said. Seasonally adjusted output rose 1.6 percent from April, the fastest gain in 5 months. Output climbed 3.3 percent in the first five months of this year. For the 12 months through May, industrial output rose 2.6 percent, the government said. Output of durable consumer goods, such as home appliances and personal computers, increased 8.1 percent from a year earlier after posting 0.5 percent growth in April. Production of capital goods, such as machinery, increased 5.9 percent in May, erasing a 0.3 percent decline in April.
U.S. Final Q1 GDP Increases
June
31, 2006. U.S. real gross domestic product (GDP) increased at
an annual rate of 5.6 percent in the first quarter of 2006,
according to final estimates released by the U.S. Bureau of
Economic Analysis. In the fourth quarter, real GDP increased
1.7 percent. The acceleration in real GDP growth reflected an
upturn in PCE for durable goods, an acceleration in exports,
an upturn in federal government spending, and an acceleration
in equipment and software that were partly offset by a
downturn in private inventory investment. Final sales of
computers contributed 0.05 percentage point to the
first-quarter growth in real GDP after contributing 0.33
percentage point to the fourth-quarter growth.
Real exports of goods and services increased 14.7 percent in the first quarter, compared with an increase of 5.1 percent in the fourth. Real imports of goods and services increased 10.7 percent, compared with an increase of 12.1 percent.
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| Personals |
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ASHRAE Installs New Officers and Directors
June 29, 2006.
The American Society of Heating, Refrigerating and
Air-Conditioning Engineers (ASHRAE) installed new officers and
directors at its 2006 Annual Meeting. ASHRAE's new president
is Terry E. Townsend, P.E., Fellow ASHRAE and president of
Townsend Engineering Inc., Chattanooga, Tennessee, U.S. Other
officers installed for a 1-year term are: President-Elect Kent
W. Peterson, P.E., principal and chief engineer of P2S
Engineering Inc., Long Beach, California, U.S.; Treasurer
William A. Harrison, president of Trane Arkansas, Little Rock,
Arkansas, U.S.; Vice President Lynn G. Bellenger, P.E., Fellow
ASHRAE and partner with Pathfinder Engineers, Rochester, New
York, U.S.; Vice President Maureen Grasso, Ph.D., dean of the
Graduate School, University of Georgia, Athens, Georgia, U.S.;
Vice President Hugh D. McMillan III, P.E., senior vice
president, HRE, Cypress, Texas, U.S.; Vice President Thomas H.
Phoenix, P.E., principal and vice president, Moser Mayer
Phoenix Associates in Greensboro, North Carolina, U.S.
ASHRAE installed the following directors to serve a 3-year
term from 2006 to 2009: Region I Director and Regional Chair
Garry N. Myers, vice president and director of building
automation services with Flack + Kurtz, New York City; Region
II Director and Regional Chair Wilfred Laman, P.Eng, general
sales and engineering manager with Quiet-Aire Manufacturing
Inc., Mississauga, Ontario, Canada; Region III Director and
Regional Chair Daniel C. Pettway, sales representative with
Hobbs and Associates, Virginia Beach, Virginia, U.S.; Region
XI Director and Regional Chair Traci A. Hanegan, P.E.,
principal with Coffman Engineers, Spokane, Washington, U.S.;
Director-at-Large William P. Bahnfleth, Ph.D., P.E., Fellow
ASHRAE and professor of architectural engineering and director
of the Indoor Environment Center at The Pennsylvania State
University, University Park, Pennsylvania, U.S.;
Director-at-Large Richard D. Hermans, P.E., senior project
manager, Center for Energy and Environment, Minneapolis,
Minnesota, U.S.; Director-at-Large Bjarne W. Olesen, Ph.D.,
Fellow ASHRAE and director of the International Center for
Indoor Environment and Energy, Danish Technical University,
Lyngby, Denmark.
OPEI Announces New Officers and Directors
June 27, 2006. The Outdoor Power Equipment Institute (OPEI) announced its 2006-07 officers and board of directors during its 54th Annual Meeting. OPEI officers named for 2006-07 were: Chairman Fred J. Whyte, president, Stihl, Inc., Virginia Beach, Virginia, U.S.; Vice Chairman Steven M. Bly, senior vice president of operations, Echo, Inc., Lake Zurich, Illinois, U.S.; Secretary/Treasurer Philip J. Tralies, president and CEO, Club Car, Inc., Augusta, Georgia, U.S.
Newly elected
members to the OPEI board of directors were: Michael
Hoffman, president and CEO, The Toro Company, Minneapolis,
Minnesota, U.S.; Roger Leon, senior vice president, Electrolux
Home Products, Augusta, Georgia, U.S. Re-elected to the
board were: John S. Shiely, chairman, president and CEO,
Briggs & Stratton Corporation, Milwaukee, Wisconsin, U.S.; David R. Zerfoss, president, Husqvarna Forest & Garden,
Charlotte, North Carolina, U.S.
Jarden Names Senior VP of Operations
July 5, 2006. Electric housewares maker Jarden Corporation announced Fred Eng
joined the company as senior vice president of Operations, effective immediately.
Eng will lead various macro operational initiatives designed to strengthen
Jarden's effectiveness on a global basis. Prior to Jarden, Eng was the
senior vice president of Manufacturing & Technical Operations for the
Duracell Division of The Gillette Company.
Enodis Gears Up in China
July 3, 2006. Enodis plc, the global food and beverage equipment maker, appointed Daniel Han as Supply Chain Manager for Asia Pacific. Han will be based at Enodis's regional office in Shanghai. This is the latest in a number of recent appointments made by Chris Karssiens, Group Managing Director for Asia Pacific, who relocated from the U.S. to Shanghai in September 2005.
Xerox Names New Controller
June 29, 2006. Leslie F. Varon was named controller of business appliance maker Xerox Corporation. Varon replaces Harry Beeth, who retired. Varon will oversee the company's financial planning and analysis, accounting, internal controls, and financial systems.
Blueair Restructures Sales Team for Growth
June 27, 2006. Blueair, a maker of air purifiers, named Chan Tinkle, previous vice president of sales and marketing, as executive vice president. Additionally, Holly Isbister, previous operations and aftermarket sales manager, was appointed Eastern sales manager and Anna Sarat, sales manager, was named Western sales manager.
Toro Names New Board Member
June 28, 2006. Outdoor power equipment maker The Toro Company appointed Gary L. Ellis to its board of directors, effective June 26, 2006. The addition of Ellis brings the board to 10 members. Ellis is senior vice president and chief financial officer of medical device maker Medtronic, Inc. Ellis joined Medtronic in 1989 as assistant corporate controller and has held various positions in the U.S. and Europe.
Hitachi Asia Ltd. Appoints CEO for Asia
June 29, 2006. Hitachi, Ltd. appointed Shunsuke Ohtsu, managing director Hitachi Asia Ltd., as CEO for Asia, effective Aug. 1, 2006. The CEO for Asia is the Hitachi Group's senior representative for all Asian countries, except Japan and China. Ohtsu is responsible for developing the business strategy for the group and promoting business localization in the Asian region. |
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| Associations |
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OPEI Expo, Green Industry Combine Trade Shows
June 23, 2006. The Outdoor Power Equipment Institute (OPEI), the Professional
Landcare Network (PLANET), and the Professional Grounds Management Society
(PGMS) announced they will combine their two trade shows, the OPEI International
Lawn, Garden & Power Equipment Expo (Expo) and the Green Industry Conference
and Expo (GIC/GIE). Expo, owned and operated by OPEI, attracts more than
20,000 retailers each year and features a 20-acre outdoor demonstration
area, more than 500 indoor exhibits, and educational sessions for dealers.
The GIC/GIE is presented by PLANET and PGMS, and features a comprehensive
lineup of educational sessions, networking events, facility tours, product
demonstrations, and cutting-edge exhibits.
The first combined show will be held in Louisville, Kentucky, U.S. in 2007. The 20-acre outside demonstration area of Expo will continue. PLANET and PGMS will continue its lawn care, interior plantscaping, landscape management, and design/build/installation educational sessions, as well as a wide range of green industry tracks presented by seasoned industry leaders.
ZigBee Adds Huawei, Schneider Electric and STMicroelectronics to Board
June 28, 2006. The ZigBee(TM) Alliance, whose companies develop wireless solutions for home, commercial and industrial applications, added Huawei Technologies, Schneider Electric and STMicroelectronics, to Promoter-level membership, giving each a seat on the Alliance board. Other such members include BM Group, Ember Corporation, Freescale Semiconductor, Honeywell, Mitsubishi Electric, Motorola, Philips, Samsung, Siemens, and Texas Instruments.
Huawei Technologies was a Participant-level member and opted to increase its position within the Alliance. Huawei is a leading company in the migration to fixed mobile convergence technology innovation. Schneider Electric was a Participant-level member and is a major player in building automation and builds ZigBee technology into its building control and ultraterminal products. STMicroelectronics was previously a Participant-level member and produces semiconductors that range from extremely complex system-on-chips to simple diodes.
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| Appliance Retail |
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Xerox Completes Multimillion-Dollar Deal with Staples
June 30, 2006. Business appliance maker Xerox Corporation completed a multimillion-dollar deal with retailer Staples Inc., placing more than 1,200 Xerox Phaser(R) network color printers in Staples stores throughout the U.S. Staples turned to Xerox for technology that would capture customer attention, save store associates' time and cut store costs. Staples previously sent each store pre-printed color forms for signs, shelf tags and labels, upon which associates then printed specific details like prices or sale offers in black-and-white.
After evaluating the process, Staples and Xerox collaborated to develop a simpler and more productive method for in-store network printing. Instead of depending on standard color forms shipped from a central location, each Staples store now prints shelf tags, sale signs and other point-of-sale materials on-demand and in full-color on a Phaser 8400. In addition, Xerox worked with Staples to standardize Staples' labels and signs, reducing the number of forms from 20 to five. The new process reportedly cuts several steps and helps store associates print signs faster and with fewer errors, giving them more time to serve customers.
ARCA to Open Fourth Outlet in Atlanta, Georgia, U.S. Market
June 29, 2006. Appliance retailer Appliance Recycling Centers of America, Inc. (ARCA) will open a 46,000-square-foot ApplianceSmart factory outlet superstore in Lithia Springs, Georgia, U.S. a western suburb of Atlanta, in the third quarter of 2006. The new factory outlet will be ApplianceSmart's fourth location in metropolitan Atlanta, and the fifteenth retail location in the U.S.
Tweeter Reports Increased Q3 Sales
July 6, 2006. Electronics retailer Tweeter Home Entertainment Group, Inc. announced comparable store sales increased 2.4 percent to U.S. $147 million for the third fiscal quarter ended June 30, 2006. This is compared to $143 million in the same quarter a year ago. Total revenue from continuing operations decreased 4 percent to $159 million compared to $167 million last year. There were 153 stores in operation this quarter. The same quarter last year began with 171 stores and ended with 160 stores. According to Joe McGruire, Tweeter president and CEO, the increase was helped by a 17-percent increase in flat-panel TV sales.
Gregg Appliances Announces Increased Year-End Results
June 28, 2006. Appliance retailer Gregg Appliances, Inc. reported a 7.7 percent increase in total sales for the fourth quarter ended March 31, 2006. Sales increased to U.S. $221.3 million compared to $205.6 million in 2005. Net income was $3.7 million compared to $14.1 million in 2005. Sales for the year increased 12.1 percent to $900.4 million compared to $803.2 million in 2005. Net income was $22.2 million as compared to $29.2 million for the prior-year period. Gregg Appliances said its video business is transitioning as a result of declining consumer demand for projection TVs in favor of plasma and LCD flat panel technology, coupled with an industry-wide supply shortage of larger flat-screen TVs. The supply of large flat-screen TVs has improved sequentially since March and is expected to continue to improve during the second half of calendar 2006.
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| Product Introductions |
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Electrolux Debuts First Canister Vacuum that Cleans Its Own Filters
Electrolux?s Twin Clean vacuum is reportedly the first and only canister vacuum to feature two HEPA filters that can be cleaned on-board, making the cleaner virtually maintenance free while providing consumers with steady suction and superior cleaning capabilities. At the core of Twin Clean?s design is the HEPA Clean system that starts with an indicator light on the canister that flashes red when the filter needs cleaning, eliminating unnecessary guesswork. Users simply flip the clean filter and the dirty filter, and then with a 360-degree turn of the dirty filter in the vacuum?s Dual Clean system, the filter is cleaned. The vacuum also features cyclonic cleaning system that Electrolux says actually spins dirt and dust away from the Dual Filter system to help maintain suction power longer.
Electrolux says Twin Clean features accessible fingertip controls located on the vacuum?s soft-grip telescopic wand that allow users to select one of the vacuum?s two speeds and adjust the deep cleaning power brush for carpet and hard floor surfaces. A one-step wand release allows instant transition from on-floor to above-floor cleaning. Twin Clean also features a transparent dust cup that makes it clear for consumers to gauge when the cup is full and ready to be emptied. Twin Clean also features a deluxe stretch hose and a 21-foot cord that give the vacuum a 35-foot cleaning reach and a 14-inch wide cleaning path; built-in crevice and brush accessories; and an automatic cord rewind for quick and neat storage. The Electrolux Twin Clean retails for U.S. $499.99.
Dacor Introduces New Line of Stand-Alone Refrigerators
Appliance maker Dacor introduced the Epicure collection of stand-alone refrigerators. The units, at 36 inches wide and 24 inches deep, are available in stainless steel with French door or standard door configuration, both with bottom freezers. Both configurations boast interiors that can accommodate oversized items such as deli trays and serving platters. In addition to the tightly monitored interior temperatures, Dacor said the units feature a slide-out deli drawer and two crisp drawers, with individual adjustable temperature/humidity controls. The refrigerator also includes an internal water dispenser mounted on the inside wall.
Front-mounted electronic controls provide temperature readouts with monitors that alert users when the internal temperature increases, water filter needs to be changed or if the door is left ajar for several minutes. The units are Energy Star(R)-compliant and feature Adaptive/Pre-emptive Defrost, which tracks refrigerator door usage, then sets maintains optimum point temperatures that are adjusted to fit the usage patterns. At known intervals of heavy usage, the units adjust accordingly to keep food fresher longer. The company first launched its refrigeration products earlier in 2006 with the Epicure Built-In, Side-By-Side Refrigerators in 42-inch and 48-inch models, which was followed by the recent launch of the company's new Dual-Zone and Single-Zone WineSteward(TM) and its new Beverage Center.
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| International Standards |
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Chinese Province Issues Appliance Ban
June 26, 2006. The Land and Environment Resource Department of China's Hainan Province and Haikou Municipality has mandated that all fluorine-containing appliances being taken off the market by July 1. The ban comes after the department determined that 90 percent of the refrigerators sold in the province contain fluorine, which is viewed as being environmentally unfriendly, according to a ChinaTechNews report. The news outlet says about 5,000 refrigerators were sold in Hainan in 2005 and that the brands that will be impacted by the ban include Xinfei, Kelon, Haier, Xingxing, Dakesi, Shilehua, and Tongbao. The province is planning to build a fluorine recycling facility.
Brazil Adopts Japan Digital TV Standard
June 30, 2006. Brazil selected a
high-definition (HD) digital TV system based on a Japanese
standard for its more than 120 million television
viewers,
instead of the standards used in Europe and the United States,
according to reports by the AP and Reuters. The new
system is
expected to be operational within 7 years and the transition
to digital TV from the current analog model will occur
over 10
years. The system will permit HD images, interactive use with
Internet functions and portable reception. Ronaldo
Seron,
commercial director of Victor Company of Japan Ltd., or JVC,
in Brazil said that because of Brazil's decision, JVC
will start studying the possibility of producing TV sets in
Brazil, where it currently makes audio equipment, digital
cameras and DVD players, among others consumer goods. "The big advantage of going digital with the Japanese standard is the portability and mobility it offers the consumer," he said. "The
ability to receive TV signals on cell phones and small
portable sets will open up brand new horizons for manufacturers
who will benefit from increased sales and for TV networks
who will see their audiences soar."
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