Ferguson announces Q2 financial results

Q2 highlights: 

• Strong sales growth as core strengths drove market share gains in supportive end markets;
• Price inflation increased to high teens driven largely by finished goods; and
• Operating leverage led to particularly strong profit growth, the distributor noted.

First-half highlights: 

• Sales growth of 29.1% and robust operating leverage led to operating profit growth of 68.3% (adjusted 62.5%);
• Completed six acquisitions, four within Q2, with annualized revenues of about $235 million; and
• Repurchased $417 million of the $1.0 billion share buyback program announced Sept. 28, 2021.

Corporate highlights: 

• Interim dividend increased by 15% to $0.84 per share;
• Increasing share buyback program by $1.0 billion to $2.0 billion. Through March 11, 2022, Ferguson has completed $659 million, leaving $1,341 million outstanding which it expects to complete over the next 12 months; and
• Vote to enable a U.S. primary listing approved on March 10, 2022, expected to take effect May 12, 2022. Kevin Murphy, group chief executive stated: "Our associates delivered another excellent performance with continued market share gains and strong price realization while navigating industry supply chain pressures. We are pleased with earnings growth that significantly outpaced revenue growth to generate another quarter of strong operating leverage."

IMARK Plumbing honors members and suppliers

IMARK Plumbing recognizes members and suppliers that go above and beyond in all aspects of business and participation within the group. Ted Havel, vice president of marketing and suppliers relations said, “I am thrilled to recognize these suppliers and members who have shown exemplary levels of leadership and group participation throughout the year.”

The IMARK Plumbing preferred suppliers listed below were recognized based on the results of a member ranking process, which was determined by the suppliers’ level of involvement in the following areas: IMARK marketing, communications and training programs, IMARK program execution and the support of IMARK members. Awards were given within each of the following categories, marketing, merchandising, product and promotion.

Marketing award: Suppliers that excel in promoting their brand, product training, creating end-user demand, provide helpful marketing resources and offer effective marketing funds: Liberty Pumps.

Merchandising award: Suppliers that excel in offering effective merchandising displays/signage and training member personnel on merchandised products: Milwaukee Electric Tool.

Product award: Suppliers that excel in offering top-quality products, and developing new and innovative products: Sioux Chief.

Promotion award: Suppliers that excel in creating consistent and effective promotional offers and create the most effective IMARK exclusive promotions: Pioneer Industries.

Supplier of the year: Suppliers that received numerous ratings in each of the four categories (Marketing, merchandising, product and promotion) and suppliers that achieved status on the 2021 Supplier Gold / Platinum Program. Legend Valve & Fittings.

IMARK Plumbing recognized the following members for distinguished performance in 2021. The members listed below were recognized (based on objective criteria tracked by IMARK HQ) for their effective implementation of IMARK marketing and training programs, their exemplary support of IMARK preferred suppliers and achieved status on the 2021 Member Premier Program.

Abilene Plumbing Supply (Abilene, Texas); Northwest Pipe Fittings (Billings, Montana); Prier Pipe & Supply (Salem, Oregon); The Part Works (Seattle, Washington), The Tap of Kansas, (Wichita, Kansas), William Betz JR (Philadelphia, Pennsylvania).

Registration open for AIM/R 50th anniversary conference

AIM/R will celebrate its 50th anniversary this fall at the Gaylord Rockies Resort & Convention Center in Colorado. The association is returning to its roots and where the first conference was held back in 1973. The theme is "Mission Celebrate." 2022 Conference Chair – Katie Hubach, CPA, Signature Sales – hopes everyone can join the association in Colorado.

Registration and housing for the AIM/R 50th annual conference (Oct. 12–14) is open. Check out the program lineup with speakers from inside and outside the industry.

What’s new this year? 
Manufacturers join later in the week from Oct. 13-14 (Thursday to Friday). Rep agents attend from Oct. 12 –14 (Wednesday to Friday). On Friday evening, attendees will enjoy AIM/R’s first-ever reception, dinner and 50th gala. Attendees can indulge in the VIP lounge that would tempt James Bond himself. “Bondified” activities, drinks and dinner on AIM/R will be enjoyed by all attendees.

AIM/R greatly appreciates your continued support of the industry and its events. If you have any questions, please contact AIM/R at info@aimr.net or at 630.942.6581.

A. O. Smith Foundation donates $100,000 to Ukraine relief efforts

A. O. Smith Corp., along with the A. O. Smith Foundation, the company’s charitable arm, has made a $100,000 donation to the American Red Cross to help support humanitarian relief efforts in Ukraine. With operations across the globe, A. O. Smith believes in helping communities through efforts that focus on health and human services.

According to the American Red Cross website, more than two million people have fled Ukraine to nearby countries and an estimated 18 million – one-third of the country’s population – will need assistance. Red Cross teams have donated food, water, medical supplies, household items and hygiene parcels to families seeking safety.

“Our foundation’s leadership agreed unanimously to offer this contribution as a small gesture to provide basic human necessities — food, water, shelter, medical care — to those affected,” said Kevin Wheeler, A. O. Smith chairman, president and CEO. “The foundation deeply believes in giving back to our communities, and while the company doesn’t have operations there, it is impossible not to have compassion for those suffering in Ukraine.”

In addition to the foundation’s direct financial support, A. O. Smith also partnered with the American Red Cross to create a donation microsite to assist employees in making personal contributions to the relief efforts if they choose.

The A. O. Smith Foundation is committed to making communities a better place to live and work by partnering with and supporting nonprofit organizations around the world. Established in 1955, the foundation has provided more than $50 million in financial support for worthwhile organizations, institutions and programs.

Ferguson, Uponor support new Community Plumbing Challenge in Alabama

Ferguson and Uponor North America have both announced their continued support for the International Water, Sanitation and Hygiene Foundation’s (IWSH) Community Plumbing Challenge program, the most recent of which started in March in Lowndes County, Alabama.

IWSH’s latest CPC effort is a collaboration with the Black Belt Unincorporated Wastewater Program (BBUWP) and LIXIL to provide plumbing repairs and upgrades for five homes and develop a framework for ongoing plumbing industry support to the BBUWP. The weeklong project addresses a critical issue for public health and safety in the surrounding community, where many low-income homeowners are unable to afford an on-site sewage disposal system, instead resorting to straight piping, which releases sewage above ground.

In cooperation with its nearest branch — in Montgomery, Alabama — Ferguson is generously donating all necessary plumbing products for the project, while Uponor is providing monetary support toward the new program.

“It’s unfathomable to think about the more than two million Americans living without access to clean water and proper sanitation,” said Denise Vaughn, Ferguson’s vice president of environmental, social & governance (ESG). “We are honored to partner with IWSH, Uponor and LIXIL, along with many talented and kind plumbers, to bring this project to life in Alabama. This is just the beginning — and we know that, with the leadership and vision of IWSH, change is on the horizon for many other communities, too.”

“We are honored to be able to support IAPMO/IWSH in their important work alongside a valued partner like Ferguson,” said Ingrid Mattsson, director of brand and sustainability for Uponor North America. “Uponor has a long history of supporting plumbers in their role of providing health and safety to the nation, and I’m happy to hear that Lowndes County, Alabama will benefit from this collaboration.”

IWSH greatly appreciates the support and sponsorship of a multitude of leading plumbing industry organizations, from sectors including labor, manufacturing and supply. More details of current IWSH Global Partnerships may be found at https://iwsh.org/iwsh/get-involved/sponsors.

“Bringing together the expertise of the plumbing industry to address this need demonstrates our commitment to begin to solve a long-standing issue in Lowndes County,” IWSH North American Program Director Jed Scheuermann said. “We are grateful to Ferguson, LIXIL, Uponor and United Association locals in Alabama who join us in our latest Community Plumbing Challenge. Despite various challenges, we team up with support and guidance from community and state officials. Given March 11 (was) World Plumbing Day, our CPC could not be more perfectly timed to draw attention to how plumbers protect the health of the world.”

APR Supply announces 100 Days of Giving Program

As part of its centennial year celebration, APR Supply Co. has set the goal of its teammates giving back to the communities in which they conduct business by donating 100 days’ worth of community service through an internal program called 100 Days of Giving.

APR Supply Co.’s 100 Days of Giving strives to honor the local communities in which employees live and work through the donation of volunteer hours. The program encourages employees to become involved and to give their voluntary support to programs that positively impact the quality of life within the community. APR will reimburse team members who donate their time to a non-profit organization, up to eight hours per fiscal year. The goal is for each location and department to donate at least two days, or 16 hours, to their local community.

To kick off the initiative, two members of the APR Supply Co. marketing department volunteered with the Junior Achievement Program (JA) of South-Central PA to teach STEM skills and resume writing to local seventh and eighth-graders. The JA YES! Program utilizes community volunteers to work within middle schools to prepare students for the importance of financial and career decisions they will face as young adults.