National
News
- May 2006
New York, April 20, 2006 (Reuters) - Armor Holdings Inc.
said on Thursday first-quarter profit rose 33 percent,
helped by strong demand from the Pentagon for protective
armor for soldiers and vehicles in Iraq.
The Jacksonville, Florida-based company, which makes
inserts for armor vests and protective plates for Humvees,
reported quarterly profit of $41.4 million, or $1.11 per
share, compared with $31 million, or 87 cents per share,
in the year-ago quarter.
Revenue rose 22 percent to $445 million.
Wall Street was forecasting earnings of $1.09 per share,
on revenue of $452.5 million.
Armor Holdings is the leading U.S. armor maker, competing
with Point Blank Body Armor, a unit of DHB Industries Inc.
which makes protective ceramic plates inserted into vests.
The Defense Department is stepping up body armor purchases
after a recent internal report found that better body armor,
including side protection, could have prevented or limited
about 80 percent of fatal torso wounds suffered by U.S.
Marines in Iraq.
The rush of orders has pushed Armor Holdings' sales to
record highs, and helped its stock rise six-fold since
the U.S.-led invasion of Iraq in March 2003.
The stock hit its all-time high of $65.06 on Thursday,
later closing down 89 cents, or 1.38 percent, at $63.66
on the New York Stock Exchange. They were untraded after
the closing bell.
In February, the company agreed to buy military truckmaker
Stewart & Stevenson Services Inc. for about $1.1 billion.
Excluding any impact of that acquisition, and including
about 1 cent per share of integration costs, Armor Holdings
kept its forecast unchanged for second quarter earnings
of $1.05 to $1.10 per share. Wall Street is expecting $1.05
per share, on average.
New YORK, NY, April 21, 2006 (Company Release) - The
National Association of Uniform Manufacturers & Distributors
(NAUMD) today announced the election of its board
of directors and officers for 2006-07.
In voting by the NAUMD board, the new executive committee
included: Ron Pate, Unison Marketing Group, Inc., elected
to a two-year term as president along with Roger Heldman , Blumenthal
Uniform Company, senior vice president.
Steven Zalkin, Alamar Uniforms of Kansas City,
was named treasurer. Steve Robinson,
Liberty Uniform Manufacturing Co., Inc. will serve as
member at large. Richard J. Lerman, NAUMD’s executive
director, was elected secretary and Michael Broome , Samuel
Broome Uniform Accessories continues on both the executive
committee and board of directors as immediate past chairman.
Returning board members include: David Blalock, Burlington
Mills; Stewart Brooks, Rocky Shoes & Boots Inc.; Joseph
Chiusolo, Turn Out Fire & Safety Inc.; William
D. Graves, Graves Uniforms; Fred Heldman, Fechheimer Brothers
Company; Steve Leventhal, Leventhal Ltd.; Barry
Levontin, Garment Corporation of America; Gary Pearson, 3M
Co.; Michael Spiewak, Spiewak & Sons, Inc.; Jim
Tewmey, VF Imagewear; and Russell Wilson, Pro Feet
Inc.
Elected to first terms were Cary Gregory, Galls/Aramark
and David Warns, Cintas.
Ron Pate, 2006-07 NAUMD president, is a co-founder of
R&R Uniforms. He has held senior level sales positions
for Horace Small Apparel Co. and VF Corp’s Workwear
group. With Bob Gates, his business partner of 35 years,
he currently co-owns Unison Marketing Group, a marketing
resource for industry suppliers.
A long serving NAUMD volunteer leader, his most recent
roles included senior vice president and co-chair of the
association’s postal committee.
The NAUMD has been serving as the voice of America’s
uniform industry since 1933 and is a not-for-profit trade
association representing the interests of over 450 member
companies who are engaged in the design, development, material
supply, manufacture and the distribution of uniforms, career
apparel, and associated accessories to businesses worldwide.
To learn more, contact the association at 212.869.0670
or visit www.naumd.com .
Central Lake, MI, April 19, 2006 (AP) -- Boosted by state
and local tax breaks, Second Chance Armor Inc. will step
up the manufacture of bullet-resistant vests at its northern
Michigan factory, which had closed amid allegations of
defective products.
The company filed for bankruptcy in 2004, and its assets
were purchased last year by Armor Holdings Inc., based
in Jacksonville, Fla. Armor plans to invest more than $1
million to expand operations in Central Lake, creating
about 100 jobs.
The Michigan Economic Development Corp. on Tuesday announced
a tax credit worth more than $766,000 over nine years,
The Detroit News reported. Central Lake Township has proposed
a 12-year tax abatement valued at $70,000.
"I think it's great," Larry Eckhardt, the Central
Lake village president, told the Traverse City Record-Eagle. "It's
going to add jobs back to the community that we lost a
couple of years ago."
Founded 30 years ago, Second Chance previously was the
nation's top producer of soft, concealable body armor for
police, with more than $50 million in annual sales. But
the company was hit with more than a dozen lawsuits and
recalled some vests in 2003 after questions arose about
the durability of a Japanese-made synthetic fiber called
Zylon with which the vests were made.
The Central Lake plant was closed a year ago, shifting
operations to a newer facility in Alabama and putting about
200 people out of work.
Armor Holdings paid $45 million last August to acquire
most of Second Chance's assets, excluding anything related
to Zylon.
Its new Central Lake investments will include purchasing
equipment and enlarging the manufacturing building to make
room for offices, the Record-Eagle reported. Offices presently
are in a separate building.
Interest in the company's product line picked up almost
immediately after the sale, said Glenn Katz, vice president
and general manager of Second Chance Holdings. The company
was "inundated" with orders and last September
reopened limited manufacturing lines to fill the backlog,
he said.
About 40 former employees were hired as temporary workers
without benefits.
"If everything works according to plan, we could
convert all temporary employees to permanent employees
with benefits as of May 4," Katz said.
As more people are hired, the company likely will give
preference to former employees who were let go, said Michael
Fox, spokesman for Armor Holdings.
"They deserve those positions and were part of building
the original company that through no fault of their own
had the troubles that it did," he told the News.
New York, April 18, 2006 BrandWeek) - Athletic sportswear
manufacturer Russell Corp. said late Monday it would be
acquired by Berkshire Hathaway Inc., the holding company
40% owned by billionaire investor Warren Buffett.
The purchase price was put at $18 a share, or about $600
million. Omaha, Neb.-based Berkshire also will assume $400
million to $500 million in debt as part of the acquisition,
Nancy Young, spokesperson at Russell, Atlanta, said in
a statement. Russell’s brands include Russell Athletic,
Jerzees, Spalding, Brooks, Huffy Sports and Bike.
Russell’s net income fell from $47.9 million in
2004 to $34.4 million last year. The company said problems
last year “stemmed from operational issues,” some
of which arose following Hurricane Katrina. The company
said that more than half of the ports it uses were closed,
and the company faced higher energy, transportation and
raw material costs.
The acquisition, which is subject to stockholder and
regulatory approvals, is expected to close in the third
quarter this year. “[When complete], Russell will
be better positioned against our worldwide competitors
in all three segments of our business, and that includes
apparel, sports equipment and athletic shoes,” Jack
Ward, Russell’s chairman and CEO, said in a statement.
Shares of Atlanta, Georgia-based Russell Corp. rose 37
percent on Tuesday after the investment firm Berkshire
Hathaway. Analysts said Russell would fit well with Berkshire's
other investments, which include apparel company Fruit
of the Loom, Fechheimer (Flying Cross) activewear and H.H.
Brown Shoe.
Trevose, PA, April 10, 2006 - The Advertising Specialty
Institute (ASI) released results of its annual promotional
products industry sales analysis, indicating revenues jumped
5.1 percent from 2004 to $17.8 billion in 2005 - the third
year of continuous increases and a new record.
Spending on promotional products was twice as large as
Internet display advertising, five times greater than outdoor
advertising and more than cable TV advertising*.
The exclusive analysis, conducted by ASI, shows that
growth in 2005 was driven by increased recognition that
promotional products should be included in marketing campaigns
and by the overall strength of the U.S. economy.
This analysis indicates that the promotional products
industry continues to experience solid gains, including
three years of increasing sales, as more and more companies
realize that promotional products apparel items, pens,
mugs have a lasting impression on recipients and
provide a strong return on the marketing investment,
said Timothy M. Andrews, president of ASI.
The ASI promotional products industry sales estimate
is widely acknowledged as the most accurate and most comprehensive
available, derived by a census of total promotional products
sales from 19,000 ASI distributor members. Distributor
members of ASI represent approximately 95 percent of all
sales volume in the promotional products industry. An
estimated valid median dollar value was assigned to the
remaining relative five percent of companies that are not
ASI members.
Furthermore, the growth of the promotional products industry
has outpaced the growth rate of the U.S. economy as a whole.
The U.S. Gross Domestic Product, while healthy, posted
a 3.5 percent gain in 2005. This figure declined from 4.2
percent in 2004.
Distributors are optimistic about 2006, but continue
to watch several factors that will impact the industry
- the volatility of oil prices, the proliferation of pricing
information available on the Internet, and the increasing
importance of China and India as product manufacturing
forces.
Hence, ASI is closely monitoring trends and shifts in
the marketplace and keeping industry distributors and suppliers
informed with up-to-the-minute information from its many
print and electronic publications.
Also, this year, in addition to its five annual nationwide
trade shows, it launched The Advantages Roadshow - a traveling
trade show that tours nearly 60 cities across the country
and provides opportunities for industry professionals to
meet and conduct business.
Advertising Specialty Institute is the largest media
organization serving the promotional products industry,
with a membership of over 22,000 distributor firms (sellers)
and supplier firms (manufacturers) of promotional products
To learn more about the annual sales analysis and
other ASI research studies, contact Larry Basinait, executive
director of membership services and research at ASI,
at lbasinait@asicentral.com.
* Source: TNS Media Intelligence is the leading provider
of competitive advertising and marketing information -
across brands, media, industries and markets. Estimated
2005 spending for outdoor advertising $3.5 billion, Internet
display ads $8.3 billion, cable TV ads $15.9 billion.
Minneapolis, MN, April 6, 2006 - Rivers' End Trading
Company has announced results from standard testing on
Solar Shield t-shirts in safety orange and safety green.
All tests passed standard requirements for the American
National standard for high-visibility safety apparel and
headwear, according to a company release.
Tests were conducted by Precision Testing Laboratories
and included testing for determination of color which tests
for luminance and chromaticity; colorfastness to prove
that the fabric will not lose its color when wet or during
perspiration; bursting strength, measuring the strength
of the fabric; and dimensional change which measures shrinkage.
All tests received favorable results meeting all necessary
criteria for ANSI/ISEA approval.
The American National Standards Institute (ANSI) is a
private, non-profit organization that administers and coordinates
the U.S. voluntary standardization and conformity assessment
system. The Institute's mission is to enhance both the
global competitiveness of U.S. business and the U.S. quality
of life by promoting and facilitating voluntary consensus
standards and conformity assessment systems, and safeguarding
their integrity.
The Rivers' End Solar Shield t-shirt is 100% spun
polyester with UPF 30+ sun protection. It is designed to
wick moisture away from your skin for rapid evaporation,
4 to 8 times faster than 100% cotton. It is offered in
a variety of colors including safety green and safety orange.
Rivers' End Trading Company is a wholesale distributor
of imprintable apparel and accessories with distribution
centers in Minneapolis, Minnesota and Reno, Nevada. The
Rivers' End brand offers over 100 styles of apparel
including Solar Shield performance apparel, outerwear,
dress shirts, sport shirts, ladies apparel and much more.
The 2006 catalog is currently available and also features
activewear from NYNE, DRI Duck, Fruit of the Loom ,
Hanes , Gildan , Jerzees , Outer Banks(tm),
Storm Creek(tm), Arnold Palmer , IZOD , Bill
Blass , Yupoong , and Toppers .
For more information about Solar Shield and other
Rivers' End products or a 2006 catalog, call 1-800-488-4800
or visit www.riversendtrading.com.
Seattle, WA, April 18, 2006 – SanMar Corp.,
a leading supplier of wholesale apparel, is introducing
two dynamic new catalogs aimed at fashion-conscious young
adults as well as the important school and team market.
“Each of these unique catalogs will prove tremendous
resources for our customers. District Threads 2006 is
sure to be enticing to those looking for the latest trends,
and the School & Team 2006/2007 is an amazing
all-encompassing tool for the industry’s number-one
buying segments,” said Lee Strom, SanMar’s
senior marketing manager.
Showcasing the entire collection of SanMar’s popular
fashion-forward line of youth apparel, the District
Threads 2006Catalog is a 28-page piece taking
a fun, lifestyle approach to the youth market. The District
Threads2006 Catalog features 29 different apparel
and accessories, including 11 styles never before seen.
The School & Team 2006/2007 Catalog provides
a single resource for one of the most lucrative markets
in the industry. It features more than 200 apparel and
accessory options on over 100 pages devoted to students,
athletes, fans, clubs, organizations and more. From uniforming
to casual wear and sports apparel, customers will find
everything they need for this important segment.
SanMar Corporation is a leading supplier of wholesale
apparel including Port Authority, Port & Company,
District Threads, CornerStone, Sport-Tek,
Nike Golf, Ping, Lee, Hanes, and Jerzees.
A family owned business since 1971, SanMar is based in
Seattle, WA with six national distribution centers.
Both of the new catalogs are now available for pre-order
and will be shipping to customers at the end of April.
For more information, or to order the new catalogs,
call 800-426-6399 or visit www.sanmar.com
Brentwood, TN, April 7, 2006 - Perfection Uniforms will
greatly increase field support and wear test evaluations
for several products, according to a company release.
The products incorporated into the new method are the
Ergonomic Garment Construction System designed to enhance
comfort, mobility, and wear life of shirts and trousers;
the MatrixSeries line of performance poly/cotton twills;
and the new PinnacleSeries line of performance poly/cotton
poplins.
The Perfection Field Support System (FSS) will be coordinated
by Perfection sales representatives working personally
with agencies nationwide, in conjunction with full-service
Perfection Brand distributors. The system will identify
and cultivate opportunities by synergizing marketing, merchandising,
testing, specification development, and complete program
service to set a new standard for total brand/distributor
performance.
Perfection Uniforms is headquartered in Brentwood, Tennessee.
Its products are distributed internationally through a
select network of full service distributors.
For more information, visit www.perfectionuniforms.com or call 800.476.4964.
Denver, CO, April 19, 2006 (Rocky Mountain News) - Making
sure the people who sew the $4 billion of college sweat
shirts, ball caps and other gear earn a living wage is
not as easy as it sounds, say companies and organizations
involved in the apparel industry.
Figuring out what constitutes a "living wage" when
factories are scattered around the globe will likely prove
the biggest sticking point, said Steve Lamar, senior vice
president for the American Apparel and Footwear Association.
"There's a subjectivity element," he said. "A
living wage is a market- based concept, and companies can't
get together and set a living wage because then there are
antitrust issues."
A whole compliance industry has sprung up during the
past 15 years, with codes and procedures that aim to ensure
that factories are living up to the rules, he said.
Apparel makers that provide college-branded products
say they already adhere with standards developed during
the past decade and enforced by groups such as Worldwide
Responsible Apparel Production and the Fair Labor Association.
Typically, standards include working only with factories
that pay at least the minimum wage prescribed by the law
where the factory resides and don't violate international
laws on workers' right to organize.
Additionally, companies say, they also have crafted their
own codes of conduct and social responsibility for the
factories they contract with.
"(The company) has a commitment to ensure that our
suppliers adhere to certain standards and have a safe and
humane work environment," said Kay Carter, spokeswoman
for Sara Lee Branded Apparel. Its Champion apparel is marketed
on college campuses by a licensee called Gear for Sports.
Atlanta-based Russell Corp. owns 13 factories in the
United States, five in Honduras and three in Mexico. It
creates the bulk of its collegiate Russell Athletic line
in its own factories, which employ about 13,500 people,
said vice president for communications Nancy Young.
"We pay a little above minimum wage initially. And
the sewing jobs are production jobs, so pay is based on
what you produce," she said. "We have to pay
competitive wages, at or above the going minimum wage in
that particular area. But the 'living wage' thing is always
a complex issue."
The collegiate apparel industry is serviced by thousands
of factories throughout the world, said Jessica Rutter,
national organizer for United Students Against Sweatshops.
Current codes don't go far enough, Rutter said, largely
because there are so many scattered factories that enforcing
compliance is tough and many companies will pull their
business if the work force gets too expensive.
Worker pay makes up about 25 cents of the price of a
$20 T-shirt, she said, a figure the USAS estimates would
double to 50 cents if workers were guaranteed a living
wage.
Universities, whose licensing fees total 8 percent of
the wholesale value of the apparel they sell, wouldn't
see a dip in their income, she said. The retail value is
$4 billion nationally. At CU, licensing fees totaled $387,000
last year, said Paul Tabolt, vice chancellor of administration
Paul Tabolt.
What is a "living wage?"
"Living wage" generally refers to the hourly
wage necessary for a person to achieve a basic standard
of living. Minimum wages are set by law and may exceed
or fail to meet the requirements of a living wage.
Carlisle, OH, April 7, 2006 (Middletown Journal) — If
City Council gives its blessing, Carlisle police will become
a little more blue.
Blue as in new uniforms for Carlisle’s finest.
In a March 28 memo to City Manager Brad Townsend, Police
Chief Tim Boggess said the change in uniforms was requested
by the officers. After some review and some additional
research, Boggess said that police prefer to wear darker,
blue uniforms rather than the gray uniforms they currently
wear.
An FBI bulletin that Boggess cited also said the distinctive
uniform of a police officer “has a profound psychological
impact on others.”
Boggess put together a proposal for Townsend and also
found a benefactor, Mike Hovell, owner of Mike’s
Custom Homes in the Dayton area and brother of former city
finance director Ron Hovell.
Mike Hovell donated $2,100 to Carlisle police to cover
the costs for an initial issue of uniforms for each of
the 10 full- and part-time officers, excluding Boggess
and Sgt. Jim Slyder. The officers have agreed to use their
annual uniform allowance to purchase additional uniforms.
The new uniforms will be a dark, navy or “LAPD” blue,
which is similar to what Franklin adopted recently, Boggess
said. However, Carlisle officers will not have uniform
pants with cargo pockets.
Last year, Carlisle police adopted a new badge design,
which features the city’s seal instead of the seal
of state of Ohio in the center.
Boggess said no other changes are planned for uniform
patches or duty belts to go with the new uniforms.
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