1999 TOP 100

By Industrial Distribution Staff -- Industrial Distribution, 6/1/1999

W.W. Grainger, Inc.

NYSE: GWW

Lincolnshire, Ill.

Richard Keyser, Chairman & CEO

1998 Sales: $4.3 billion

Branches: 530 Employees: 15,270

Grainger remains king, although growth slowed in '98 at 4.9 percent. "Sales for us were a little tougher to come by," said Keyser. The trend continued in 1999, as first-quarter sales grew just 3.2 percent. The firm holds out great hope for its e-commerce business. "We have a couple of growth engines that are real bright spots. Lab Safety Supply has been doing quite well, and our Internet business has been growing very robustly," said Keyser. So has integrated supply, which grew 25 percent in the first quarter and totaled $81 million in 1998. Grainger will remain on the sidelines in 1999 when it comes to acquisitions.

2

Graybar Electric

St. Louis, Mo.

Carl L. Hall, President

1998 Sales: $3.74 billion

Branches: 260 Employees: 7,800

Continued double-digit sales gains helped Graybar up sales to $3.74 billion. Hall expects Graybar to crash through the $4 billion mark in 1999. Industrial sales continue to make up just under one-third of sales. Adding staff has ramped up growth; Graybar added 800 employees last year, and has expanded its sales staff by about one-third over the last few years. "I don't think '99 will be as strong as '98, but we still think it will be a good year," said Hall, noting that national accounts in the industrial sector are growing faster than any other group. Net profit was up 12 percent.

3

WESCO Distribution, Inc.

NYSE: WCC

Pittsburgh, Pa.

Roy Haley, Chairman and CEO

1998 Sales: $3.025 billion

Branches: 330 Employees: 5,445

Acquisitions and an investor-led buyout kept WESCO on the fast track in 1998. Overall sales increased 16.6 percent, while industrial sales grew about 10 percent to $437.5 million. Six acquisitions added more than $600 million in revenues, and 23 branches became ISO 9002 certified, increasing the total to 102. "Our core business was strengthened as we continued to add significant, high-profile companies as part of our national account and integrated supply programs," said Haley. Last spring's re-capitalization resulted in a $7.7 million net loss but set the stage to finance growth. WESCO went public May 12.

4

Hughes Supply

NYSE: HUG

Orlando, Fla.

Stewart Hall, President/COO

David Hughes, Chairman/CEO

1998 Sales: $2.53 billion

Branches: 400+ Employees: 7,230

With over 60 acquisitions since 1985, nine in 1998, Hughes is "taking a break" from buyouts this year, says CFO Steve Zepf, to integrate branches and product lines. But Hughes won't be sitting idle. Plans are in the works to "take market share" and continue same store sales growth. With deflationary trends subsiding and the construction market "solid," Zepf is confident in the 13 percent projected increase in sales from its nine product lines: electrical, electrical utilities, plumbing, water/sewer, building materials, HVAC, water systems, industrial PVF and pool and spa.

5

Motion Industries

Birmingham, Ala.

Bill Stevens, President

1998 Sales: $2.04 billion

Branches: 455 Employees: 5,500

Genuine Parts-owned MI fell short of its mandated double-digit growth, but a nine percent gain still pushed the firm over the $2 billion mark. "We wanted to keep to double digits, but we were realistic after the economy slowed down and even though we didn't keep to double digits, we felt it was still acceptable," said Stevens. MI will continue to acquire, and may look to general line or specialty houses to broaden its product coverage. MI also recently completed its joint venture alliance in Mexico. Motion does $13 million annually in Mexico's northern neighbor, Texas, and Stevens figures $10 million in sales in Mexico is possible in the future.

6

G.E. Supply

Shelton, Conn.

William Meddaugh, President/CEO

1998 Sales: $1.9 billion

Branches: 150 Employees: 2,600

Sales were flat for this full-line electrical distributor in 1998. While unit volume was up five percent, deflation cost the company nearly three percent of the total volume, according to Meddaugh. He expects deflation to continue in 1999 and for industrial MRO and user segments to be flat. However, Meddaugh says, "strong equity markets continue to drive strong commercial and residential construction." Acquisitions and integrated supply will continue to be a focus for G.E. Supply as the company works to form alliances with other industrial distribution companies to offer efficient integrated supply programs. Sales are expected to hit $2 billion this year.

7

Airgas, Inc.

NYSE: ARG

Radnor, Pa.

Peter McCausland, Chairman & CEO

1998 Sales: $1.56 billion

Branches: 700 Employees: 8,000

Airgas continues to concentrate on integrating the close to 200 acquisitions it has made over the last five years. Sales were up 8.3 percent last year, compared to 25 percent growth in 1997. The falloff was due to a soft economy and the divestiture of about $50 million in revenues. The firm expects flat sales in 1999. Its failure to integrate acquisitions quicker resulted in its stock dropping nearly 40 percent in '98. CFO Chris Close says the firm will continue to acquire traditional gas distributors, and that Airgas will again begin to acquire safety distributorships "down the road when the infrastructure is in place."

8

Applied Industrial Technologies, Inc.

NYSE: APZ

Cleveland, Ohio

Jack Dannemiller, Chairman/CEO

1998 Sales: $1.49 billion

Branches: 380 Employees: 4,800

Applied increased sales by 28 percent and earnings by 11 percent in fiscal '98, which ended June 30, 1998. Results were lower than expected. Applied felt the economic pressures that plagued other firms in '98, specifically the Asian Flu and the GM strike, and faced difficulty integrating its 1997 purchase of Invetech. Dannemiller is optimistic about 1999 -- investments in technology are paying off, the firm's fluid power acquisitions are "coming together nicely," and Invetech is "beginning to make the contributions we expected."

9

Premier Farnell Corp.

NYSE: PFP

Cleveland, Ohio

Peter Costello, CEO

1998 Sales $1.17 billion

$246 million, Industrial Products Group

Branches: 150 Employees: 5,700

1998 brought numerous changes to Premier Farnell and its parent company, Premier Farnell plc, based in the UK. John Hirst, group CEO, joined the firm last summer and recently released a six-month strategic review. Hirst's goal is to make the North American and British factions function as a coherent group. Plans for the Industrial Products Division, headed by new division CEO Peter Costello, include improving sales efficiency in North America, investing for growth in Europe, and targeting key customer segments. Costello expects marketshare growth in 1999.

10

Westburne Inc.

TSE: WBI.TO

Montreal, Quebec

Robert Chevrier, CEO and Chairman

1998 Sales: $762 million

Branches: 483 Employees: 4,935

Westburne was an active consolidator in '98, acquiring 13 firms (four in industrial products) with $96 million in sales. Revenue from its four divisions grew 3.4 percent to $1.49 billion, which includes $762 million in industrial tools and electrical products. Its goal is to grow U.S. revenue to become half of overall sales within three years. By the year's end, U.S. sales totaled 26 percent. Most of its U.S. acquisitions were plumbing supply houses, and for now, CFO John Hanna says Westburne will grow its industrial business in Canada only. The company sees a strong future for electrical and plumbing supplies in the U.S.

11

Ferguson Enterprises, Inc.

Newport News, Va.

Charles A. Banks, President

1998 Sales: $735 million (industrial)

Branches: 313 Employees: 6,500

Ferguson grew its industrial sales last year in a down market. Key influences were low gasoline prices that hurt the refinery business, and pulp and paper companies moving operations to foreign countries. Ferguson stayed active on the acquisition front, buying eight firms. Banks says he expects more end users to seek a single-source for multiple commodities. Ferguson's integrated supply operations accounted for eight percent of sales in 1998. The firm plans to continue expanding its service distribution network with start-up locations, through its regional DC network and with more acquisitions. Total company revenues were $1.9 billion.

12

McJunkin Corp.

Charleston, W. Va.

H.B. Wehrle, III, President & CEO

1998 Sales: $731 million

Branches: 115 Employees: 1,500

Sales improved by 4.4 percent in 1998, but vice president of sales Steve Wehrle says revenues were off almost 15 percent in the first quarter of 1999, mostly because of slumping oil prices. Wehrle hopes recovering oil prices will result in an improved second-half performance. McJunkin has opened several new branches this year, and has 10 contracts from its consortium with Cameron & Barkley and Applied Industrial Technologies. Wehrle doesn't rule out growth by consolidation. "We are actively pursuing acquisitions," he said. But at a time when independents are pressured to sell, Wehrle says his family-owned firm "is not for sale."

13

SunSource

NYSE: SDP

Philadelphia, Pa.

Donald T. Marshall, Chairman

1998 Sales: $712.5 million

($491.7M industrial)

Branches: 150 Employees: 4,000

Earnings per share improved 14 percent in 1998, despite a 2.6 percent overall sales gain. The Industrial Services division saw sales decrease by two percent, and earnings by seven percent, partly due to slowing of several industrial accounts, but mostly because of an inability to reorganize the technology sales department in a timely manner. However, the task is nearly complete, and the firm has already seen gross margin improvement from its new computer system. The firm named Maurice Andrien president in April. Marshall will continue as chairman.

14

Cameron & Barkley Co.

Charleston, S.C.

James R. Warren, President

1998 Sales: $613 million

Branches: 89 Employees: 1,547

Cambar re-established itself as an acquirer late in the year when it purchased Warner Industrial and the Don E. Williams Co. As a result of those buyouts and others planned, Cambar looks for close to 20 percent growth this year, far surpassing 1998's four percent gain. "I'd be disappointed if we didn't do $725-$750 million," said Warren, who expects internal growth of seven percent in 1999. Warren also expects sales of the 100 percent employee-owned firm to rise to $2 billion within five years. 1999 started strong; March was a record month for both sales and margins. Integrated supply remains a major focus for the company.

15

Sammons Distribution, Inc.

Coppell, Tex.

Rick Margerison, President and CEO

Terry L. Taylor, President of Briggs-Weaver, Inc.

1998 Sales: $605 million

($175M, Briggs-Weaver)

Branches: 19 Employees: 435

1998 brought several changes to Briggs-Weaver, part of the Sammons Distribution conglomerate, including restructuring, a move to a new central distribution center and new computer systems. The year also brought Terry L. Taylor, who left another Top 100 firm, Premier Farnell, to assume the presidency in November. Taylor says Briggs-Weaver is "poised for growth" that will come, in part, from its emerging electronic commerce and catalog sales. Taylor sees opportunity for continued growth in 1999 in integrated supply and its presence in Mexico.

16

MSC Industrial Supply

NYSE: MSM

Plainview, N.Y.

Mitchell Jacobson, President and CEO

1998 Sales: $583 million

Branches: 105 Employees: 1,547

This general-line house grew sales by 33 percent in '98, slower than '97s 44 percent growth but in line with estimates. However, its second quarter report released March 31 showed growth slowed to 13 percent, and Jacobson warned of pending lower sales. "We just concluded a difficult but successful quarter. We see the manufacturing sector continuing to shrink," he said. MSC's catalog will expand to 415,000 items in '99, and MSC is eyeing expansion to the West Coast. "Our company had a terrific year in 1998. We feel we are uniquely positioned to benefit from the continuing consolidation of the industry."

17

Kaman Industrial Technologies

NASDAQ: KAMNA

Windsor, Conn.

T. Jack Cahill, President

1998 Sales: $503.5 million

Branches: 175 Employees: 1,685

Like many other firms, Kaman felt the effects of a slowdown in the industrial sector in the latter part of 1998. The first three quarters of the year were strong, followed by a flat fourth quarter. Still, the year's sales were up five percent over 1997 for this distributor of power transmission systems. And Cahill is optimistic about 1999. "We don't expect '99 to be as big a sales increase as prior years ... but we think it's going to continue to improve throughout the year," he says. "I think what we'll see in the economy is a slow evolution back to a more solid base."

18

Fastenal Co.

NASDAQ: FAST

Winona, Minn.

Robert A. Kierlan, Chairman and CEO

1998 Sales: $503.1 million

Branches: 766 Employees: 3,025

Sales growth was down significantly, from 38 percent in 1997 to 26.8 percent. Revenue slowed even more in the last two quarters (4th and 1st), at just over 20 percent. "We were actually disappointed at our sales growth decline," says Will Oberton, chief operating officer. "We started very strong and ended the year with slower growth than expected." The firm continues to grow earnings faster than sales. Fastenal expects price increases of approximately 10 percent from its suppliers this year. It has toned down its branch expansion to focus on expanding the product lines it offers.

19

Noland Co.

NYSE: NOLD

Newport News, Va.

Lloyd U. Noland III, Chairman/CEO

1998 Sales: $465.5 million

($98.6M electrical/industrial sales)

Branches: 106 Employees: 1,554

Sales were flat last year for this distributor of plumbing, heating, electrical and industrial products. Demand softened due, in part, to the Asian crisis. Integrated supply continues to represent a segment targeted for above-normal growth, either through acquiring new contracts and/or expanding existing customer arrangements. About 52 percent of its electrical/industrial sales come from integrated supply contracts, an increase over 1997. Noland is implementing a regional manager network to allow greater attention to branches with less-than-satisfactory performances.

20

Industrial Distribution Group

NYSE: IDG

Atlanta, Ga.

Richard M. Seigel, Acting CEO and President

1998 Sales: $437.6 million

Branches: 78 Employees: 1,510

IDG acquired 17 companies in 1998, resulting in much of its 53 percent revenue gain, but plans to slow its acquisition pace in 1999. A decrease in demand for industrial products has shifted the company's attention toward internal operating efficiencies and gaining market share by focusing on flexible procurement solutions including integrated supply, said CFO Jack Healey. "We will focus on integrated supply sales because we believe it is one of the best ways we can assist our customers in reducing costs," he said. IDG is still searching for a new CEO.

21

JLK Direct Distribution

NYSE: JLK

Livonia, Mich.

Richard Orwig, CEO

1998 Sales: $425.3 million ( 7/97-6/98)

Branches: 50 Employees: 1,300

JLK Direct had a mixed year of sales and profit growth, with earnings losses and intensive cost cutting. Figures reflect FY '98, which ended last June. Revenues grew 35 percent, which reflect the acquisition of six firms with $137 million in sales, but downturns in the oil and gas, agricultural equipment and aerospace sectors took a heavy toll. CFO Diana Scott says expenses outstripped sales gains, leading to layoffs and facility closings last fall. She sees a "softening economy" continuing and says energy sector sales had stabilized but not improved through March. JLK launched a Web site in March.

22

Vallen Corp.

Houston, Tex.

Jim Thompson, President and CEO

1998 Sales: $364 million

Branches: 152 Employees: 1,050

Overall sales increased 4.6 percent, which includes revenues from portions of other businesses Vallen owns. Sales in distribution grew 15 percent to $281 million, despite soft conditions in international markets and the energy sector. "I think there's more awareness out there of our capabilities and outsourcing abilities as a total safety solution," says Thompson. He expects sales this year to grow eight percent, led by safety services such as respiratory instruments, inspections, OSHA compliance and training. Vallen entered South America with a new office in Chile and Thompson says the timing appears right for more international expansion this year.

23

Van Leeuwen Pipe & Tube Corp.

Houston, Tex.

Roland Balkenende, President

1998 Sales: $300 million

Branches: 18 Employees: 350+

This global distributor of pipe, valves, fittings and flanges celebrates its 75th anniversary this year. The distributorship was founded in the Netherlands by Peter Van Leeuwen in 1924 and set up shop in the United States in 1975. The company serves North America from its Houston location, while global headquarters remains in Europe. Sales increased seven percent over 1997, and the firm anticipates flat sales this year. Since its purchase of M&N Valve in 1997, the company has made no acquisitions in the U.S. The firm reports that 30 percent of revenue comes from integrated supply accounts.

24

Yamazen Inc.

Schaumburg, Ill.

Jun Tanaka, President

1998 Sales: $294 million

Branches: 16 Employees: 310

Profits for this machine tool distributor dropped more than 10 percent last year despite a 16 percent increase in revenue. New president Jun Tanaka says tooling sales have been slow since last summer, while overhead and other operational expenses shot up. He sees the semiconductor industry rebounding and continued strength with automotive customers. "In the Midwest, agricultural equipment manufacturers are suffering and we are suffering also," he says, but Tanaka believes that market may improve as early as this fall. Yamazen plans to open up to three new offices this year in Kentucky, southern California, Wisconsin or Michigan.

25

Lawson Products

NASDAQ: LAWS

Des Plaines, Ill.

Bernard Kalish, CEO

1998 Sales: $292.5 million

Branches: 17 Employees: 1,038

1998 was a year of change and growth for Lawson. Sales were a record $292.5 million, a five percent increase. Major events included the retirement of president Peter Smith, which led to the creation of an "office of the president." Included in that office is Jeffrey B. Belford, chief operating officer and executive vice president of operations; Roger F. Cannon, executive vice president, sales and marketing; and Robert J. Washlow, executive vice president of corporate affairs. Lawson, which distributes a range of MRO supplies, also released its Supplemental Supply Catalog, which includes 15,000 SKUs.

26

White Cap Industries, Inc.

NASDAQ: WHCP

Costa Mesa., Calif.

Greg Grosch, President

1998 Sales: $292.3 million

Branches: 38 Employees: 1,000

This specialty construction and materials house relies on excellent internal growth and buyouts to grow sales. Revenues increased a stellar 62 percent in fiscal 1998, which ended March 31, 1999. Estimates for 1999 are for $316.4 million. Earnings increases in '98 reflect a favorable change in product mix, as well as lower selling and expenses as a percent of sales. Same store sales grew 13 percent in 1998, and the firm has a goal of at least 10 percent internal growth. "Our results continue to demonstrate our focus on growing our existing operations and integrating previous acquisitions," said Grosch.

27

DoAll Co.

Des Plaines, Ill.

Michael L. Wilkie, Chairman and CEO

1998 Sales: $267 million

Branches: 72 Employees: 1,200

For the most part, DoAll's 70th year in business turned out to be a disappointing one. The company, founded in 1928, saw flat sales in 1998, well under the double-digit gains the firm predicted a year ago. Based on what it has seen in early '99, management is not expecting much this year either, calling for an overall increase of just two percent. DoAll specializes in cutting tools, abrasives, precision measuring equipment and hand tools. The firm opened two new regional distribution centers in 1998, and aims to achieve a competitive edge by providing outstanding customer service.

28

The Robert E. Morris Co.

Farmington, Conn.

Lee B. Morris, Chairman

1998 Sales: $264.6 million

Branches: 7 Employees: 350

In October, The Robert E. Morris Co. announced a merger with Ellison Machinery Co. and Hartwig, Inc., a deal that closed in March and created the largest distributor of factory automation equipment and machine tools in North America. "This merger was designed to be in concert with market forces," said Morris. "The machine tool industry is far more competitive today than it was five years ago. We felt that by pulling our three companies together, we could create a whole that was greater than the separate parts that would appeal to customers, suppliers and our employees." The new firm, Meritage, will have sales topping $600 million.

29

Fairmont Supply

Washington, Pa.

Charles F. Whirlow, President

1998 Sales: $256.5 million

Branches: 31 Employees: 620

Sales dropped 12 percent last year due to reduced spending by major customers, conditions caused by the Asian markets and significant declines in oil and other energy prices. Subtracting mining supplies and specialty products, sales were $196.8 million and Fairmont expects those to drop nearly four percent in 1999. Integrated supply revenue - which makes up 75 percent of total sales - was flat, but this winter more opportunities appeared than a year ago, says Rich Layton, vice president of operations. Fairmont released a 2,000-page catalog in 1998, recently launched a Web site and this spring opened a facility in Evansville, Ind.

30

Stuart C. Irby Co.

Jackson, Miss.

Stuart M. Irby, President

1998 Sales: $256.1 million

Branches: 30 Employees: 610

Among the major events of 1998 for the Stuart C. Irby Co. were two acquisitions that increased coverage in four states. Irby bought two electrical distributorships - a one-location firm in Wildwood, Fla. and a Hot Springs, Ark. firm with locations in Oklahoma and Texas. The purchases are part of Irby's strategy of growth via acquisition, said vice president Liles Williams. The firm, which sells electrical products to utility, residential, commercial and industrial accounts, operates in eight Southeast states and plans to concentrate its growth in that region. Williams says the firm hopes to grow its integrated supply business in 1999.

31

F.W. Webb

Burlington, Mass.

Jack Hester, President

1998 Sales: $255 million

($125M industrial)

Branches: 59 Employees: 900+

Integrated supply continues to play a major role for this PVF, HVAC and MRO distributor, with half of its industrial supply business involved in integrated supply arrangements. This trend will continue, according to Hester, as more large industrial customers seek cost savings. "They are looking for single source and savings ideas from their partners," he adds. 1998 was an "excellent year" for Webb, which recorded double-digit profits. While the paper mill industry, a key market for Webb, is down, commercial business as a whole is up. Hester is confident that a positive business climate will prevail in 1999.

32

Bowman Distribution/ Barnes Group Inc.

NYSE: B

Cleveland, Ohio

Cedric D. Beckett, President

1998 Sales: $247 million

Branches: 19 Employees: 1,100

Bowman's sales dropped to $247 million in 1998, from $259 million in 1997. Bowman, a division of Barnes Group, recently named Cedric Beckett president, who says, "Operating profit improved but it tailed off at year's end, reflecting the market place and internal system changes." With sales and profits for the first quarter of 1999 off, Bowman will expand globally to attain market share. "Through the year 2000, we will be taking a global view of customer opportunity to ensure revenue growth," Beckett adds. "We must search for innovation in everything we do."

33

Branch Electric Supply

Upper Marlboro, Md.

Charles M. Steiner, President

1998 Sales: $246.2 million

($61.75M industrial)

Branches: 38 Employees: 600

Sales for 1998 were up just three percent for Branch Electric, which sells electrical products to industrial and commercial customers throughout the U.S. and Canada. "We've seen something we haven't seen in a long time and that's deflationary pricing on some of the commodity products we sell," says Steiner, adding that, "I hope we don't see that as a long-term situation." Branch Electric made no purchases in 1998, but did make one "small acquisition" earlier this year. The company has 37 locations in Maryland, Virginia, Pennsylvania, Massachusetts, New Hampshire and Connecticut.

34

Wilson Supply Co.

Houston, Tex.

Mike Chaddick, President

1998 Sales: $230 million

Branches: 60 Employees: 750

Founded in 1921, Wilson Supply ended 77 years of independent ownership when it was acquired by Smith International, Inc., last April. Wilson provides industrial supplies to the drilling, production and petrochemical segments of the worldwide petroleum industry, and to the MRO and construction markets. Wilson specializes in the PVF market. Seventy-percent of its sales go to the MRO marketplace. Total sales were $473 million last year. The $230 million figure includes sales to the industrial PVF market only. "We'll be actively pursuing acquisitions in 1999," said Chaddick. "We have a couple on the burner right now."

35

Bearing Distributors, Inc.

Cleveland, Ohio

Dave Hooser, President

1998 Sales: $220 million

Branches: 87 Employees: 750

The addition of 15 branches was primarily due to three acquisitions made by Bearing Distributors in 1998, following the three buyouts the firm made in 1997. Last year Bearing Distributors purchased Industrial Motion and Norcan, both of Canada, and Wisconsin-based IBS. The firm now has 30 locations north of the border. Sales increased by 8.5 percent in 1998, and Hooser calls for growth of just under 10 percent in 1999. The firm is currently conducting business over the Internet, but sales are minimal at this point. More acquisitions are possible this year for the power transmission house.

36

Strategic Distribution

NASDAQ: STRD

Bensalem, Pa.

John M. Sergey, President/CEO

1998 Sales: $219.3 million

Branches: 134 Employees: 950

Posting its first profitable quarters (2Q and 3Q) since 1996, SDI continues to forge ahead with a 28 percent growth in revenue. SDI recorded a $1.1 million fourth quarter charge for write-offs associated with the bankruptcy of a key customer. The ISA Division's In-Plant Store Programs, 44 of which opened in 1998, will be the source of "accelerated growth" according to CFO and treasurer Michael F. Devine. "We believe we invented integrated supply in the truest sense of the word," he said, pointing to the first in-plant store that opened in 1981. Devine said, "We anticipate reporting four profitable quarters in 1999."

37

Pentacon, Inc.

NYSE: JIT

Houston, Tex.

Mark E. Baldwin, Chairman/CEO

1998 Sales: $215 million

Branches: 32 Employees: 850

Making its Top 100 debut is Pentacon, a consolidation of five fastener distributors. Since its 1998 IPO, Pentacon has acquired four distributors. Organized into two customer-focused groups -- aerospace and industrial -- Pentacon provides high-tech inventory management and supply services to manufacturing customers for fasteners and a broad range of small components. Increasing services to existing customers, attracting new customers and pursuing acquisitions and alliances that anticipate customers' needs are Pentacon's growth strategies. Its stock price has lagged in the $4-$6 range.

38

Production Tool Supply Co.

Warren, Mich.

Mark Kahn, President

1998 Sales: $212 million

Branches: 19 Employees: 630

PTS launched "America's Tool Crib," a nationwide alliance of independent distributors, last year. With over 100 members, ATC allows small, local distributors access to PTS' inventory, marketing programs, and quick delivery schedules. The program reflects Kahn's belief that customers prefer to do business with local distributors. "We are forming a number of alliances with distributors large and small who recognize the value of using us as a same-day source for a number of products they can't afford to carry," Kahn says. Sales were down slightly in '98, mainly because the company is in the process of moving its Canadian business into the U.S., he notes.

39

Würth Group

Shrewsbury, Mass.

Reinhold Würth, Chairman

Ben Taber, Director, Mergers & Acquisitions

1998 Sales: $205 million

Branches: 57 Employees: 425

Figures reflect Würth Group's North American fastener distribution business, known as Würth Industry. Würth Group, based in Germany, is a $4.2 billion global manufacturer and distributor of fasteners. (Würth Industry does not sell fasteners manufactured by its parent company.) Würth decided to concentrate on OEMs in North America six years ago and hired Taber to coordinate acquisitions. Taber has acquired six fastener distributorships, including Service Supply Co. of Indiana, which appeared in the Top 100 last year. Taber is working to expand geographic coverage to the West, Southwest and Canada.

40

DXP Enterprises, Inc.

NASDAQ: DXPE

Houston, Tex.

David Little, President

1998 Sales: $203.4 million

Branches: 58 Employees: 700

Despite increasing sales by 20 percent, net income grew only four percent, as DXP dealt with a slump in the oil and gas industry. The results were far below the predicitons the firm made last year. "Our fourth quarter results were affected by the slump in the oil and gas industry which relates to some of our products and services,'' said Little. "We will continue to monitor the current business climate and make the changes necessary for the continued success of DXP. " DXP has high expectations for 1999, as it predicts sales of $300 million, nearly a 50 percent jump.

41

Sears Industrial Sales

Hoffman Estates, Ill.

Bill Maines, Vice President

1998 Sales: $184 million

Branches: 9 Employees: 350

Sears Industrial's revenues increased nine percent in 1998 despite a tough fourth quarter. Wendy Carges, general manager of industrial sales, says slowdowns were seen among high tech and aerospace customers on the West Coast, in MRO accounts overall and in government segments. She says that despite the quality reputation of Craftsman and other lines, "We need to look more closely at our value-add." Sears Industrial unveiled a new catalog at the start of 1998 and plans to expand its interactivity on its Web site to receive orders later this year. Through April, Carges says the MRO sector was improving.

42

The Gage Co.

Portland, Maine

Robert A. Chute, Chairman/CEO

1998 Sales: $175 million

Branches: 31 Employees: 550

Sales were down considerably for The Gage Co., from $213.7 million in 1997 to $175 million in 1998, marked by a year of change for this distributor of pipe, valves, fittings, industrial, plumbing and heating supplies, and water systems products. The Gage Co. moved its headquarters from Pittsburgh, Pa. to Portland, Maine. And, it closed and/or sold off several of its branches, bringing its number of locations from 38 to 31, and reducing employees from 600 to 550. In business since 1892, The Gage Co.'s inventory totals over 125,000 line items.

43

Turtle & Hughes, Inc.

Hamden, Conn.

Suzanne Millard, President

J.J. Drummond, President, Industrial Division

1998 Sales: $174 million

Branches: 12 Employees: 340

Integrated supply is an increasing focus of Turtle & Hughes' Industrial Division. About 40 percent of the division's revenue came from integrated supply in '98 and the company will spend much of 1999 implementing integrated supply programs at several recently awarded key accounts. "Our sales growth has definitely come through the capturing of new integrated accounts," Drummond said. "We use a customized approach to integrated supply where we design systems for each customer's needs to generate cost savings for that specific customer." 1998 also brought the acquisition of A-B Electric Supply Co.

44

Tristate Electrical & Electronic Supply Co.

Hagerstown, Md.

Grayson Oldfather, President

1998 Sales: $165 million ($82.5 industrial)

Branches: 34 Employees: 525

Tristate is heavily involved in integrated supply, and has been for a long time. Non-industrial sales include institutional accounts, as well as government and construction contracts. The firm specializes in "self select merchandising" at its 34 store locations, a concept it pioneered in the 1950's. Sales improved about 14 percent in 1998, and the firm expects a very strong 1999 to push revenues over the $200 million mark. "We are an electrical and electronics full-service house," says vice president Mel Meineke. "That's all we do; we don't do mill supplies or anything like that."

45

Precision Industries

Omaha, Nebr.

Dennis Circo, President

1998 Sales: $163 million

Branches: 80 Employees: 700

Integrated supply contracts continue to drive growth at Precision Industries, accounting for nearly 60 percent of sales, and by the end of 1999, Circo hopes it will reach 70 percent. Total revenues grew 11 percent in 1998. Circo says profits were off a little from 1997's record year because of costs to implement information systems. "The bearing and power transmission sector that was our traditional business 10 years ago seems to be flat," said Circo. "Integrated supply is growing rapidly and we are in the thick of it." Recent customers for those contracts include Kellogg's, R.R. Donnelly and Bosch Automotive.

46

Steiner Electric Co.

Elk Grove, Ill.

Richard A. Kerman, President

1998 Sales: $161 million

Branches: 6 Employees: 540

With its acquisition of $10M Crown Industrial of Chicago in January, Steiner Electric continues its foray outside electrical supplies and into the arena of industrial products. Kerman insists that part of the motivation is from tough competition among electrical supply distributors. So, to gain market share in the Midwest, Kerman is going after more MRO and contractor supply business, even some integrated supply contracts. And, if that isn't enough, he expects that Steiner will launch a Web site later this year. While 1998 ended on a "fantastic" note, 1999 began with a slow start but is "gaining speed," he says.

47

R.S. Hughes Co., Inc.

Sunnyvale, Calif.

Robert McCollum, President

1998 Sales: $158.26

Branches: 34 Employees: 396

Founded in 1955, R.S. Hughes sells adhesives, abrasives and safety products coast to coast. Sales were up eight percent over 1997, but McCollum notes that 1998 was a tough year. "The last half of the year was a dramatic slowdown," he says, pointing to the Asian crisis and strikes at Boeing and GM as prime factors. McCollum says things appeared to be turning around early in 1999, though how the year will close out is anyone's guess. "I would say there are still a lot of question marks about how strong the economy can get ... It's going to be fun going into the new millennium."

48

Piping and Equipment Co.

Conyers, Ga.

Rick Mousa, Gary Cartright Presidents

Lowell Fambrough, CEO

1998 Sales: $153 million

Branches: 28 Employees: 354

This distributor of pipe, valves, fittings and controls operates primarily in the Southeast. Sales were up four percent over 1997 -- an improvement over recent years, which saw sharp declines in sales. Still, Mousa notes that a slowdown in the pulp and paper industry continues to affect sales and profits. But he is optimistic about 1999, noting that the electric power industry looks to be pretty active, which is good news for his firm. Other events for this year include expanding locations and product lines. "We're planning on opening at least two more locations ... and going into some complementary product lines," he said.

49

Texas Mill Supply Companies

Galena Park, Tex.

Monte K. Legro, President

1998 Sales: $150 million

Branches: 17 Employees: 600+

Sales grew by $20 million over 1997, but profits were flat at Texas Mill. One area of growth for the company has been in providing on-site integrated supply management for many of its key "Fortune 500-type customers," said vice president Rick Brown. In 1998, it doubled its on-site facilities and zone stores from 30 to 60, with plans for more in 1999. While 1998's downturn of oil prices negatively impacted the company's customer base of petrochemical and refining industries, oil prices are coming back up, which should mean an uptick in business at TMS.

50

Harrington Industrial Plastics, Inc.

Chino, Calif.

Bill McCollum, Chairman

1998 Sales: $140 million

Branches: 42 Employees: 650

1998 sales were down by $6 million for this industrial distributor of pipe, valves, fittings and related products. McCollum describes the business climate as slow - the manufacturing sector was down and, as a result, distribution followed suit. He says 1999 started slow as well. "There is much more supply than there is demand, unfortunately," McCollum said. Still, he is hopeful that 1999 will turn out to be a better year than '98. The firm anticipates a 17 percent sales increase. "We're starting off slow, but we expect to get better," McCollum said.

51

Bearing Headquarters Co.

Broadview, Ill.

Jim Timble, President/CEO

1998 Sales: $128.86 million

Branches: 40 Employees: 560

52

IBT, Inc.

Merriam, Kans.

Stephen R. Cloud, President

1998 Sales: $123.7 million

Branches: 46 Employees: 426

53

Machinery Systems, Inc.

Schaumburg, Ill.

Joe Romanowski, President/CEO

1998 Sales: $119 million

Branches: 3 Employees: 130

54

Carlson Systems

Omaha, Nebr.

Don Carlson, President

1998 Sales: $118 million

Branches: 45 Employees: 400

55

Purchased Parts Group,Inc.

Livonia, Mich.

David Sekela, President/COO

Michael L. Turnbull, Chairman/CEO

1998 Sales: $110 million

Branches: 35 Employees: 400

56

Goodall Rubber Co.

Ewing, N.J.

Joseph Mika, President/CEO

1998 Sales: $106 million

Branches: 40 Employees: 510

57

Indoff, Inc.

St. Louis, Mo.

John M. Temple, President

1998 Sales: $103 million

Branches: 250 Employees: 357

58

Cross Sales & Engineering

Greensboro, N.C.

Pete Cross, President

1998 Sales: $94 million

Branches: 13 Employees: 300

59

Dillon Supply Co.

Raleigh, N.C.

Robert L. McCann, President/CEO

1998 Sales: $90 million

Branches: 16 Employees: 300

60

Argo International Corp.

New York, N.Y.

John Calicchio, Chairman

1998 Sales: $84.8 million

Branches: 25 Employees: 216

61

The BC Bearing Group

Burnaby, British Columbia

Robert S. MacPherson, President

1998 Sales: $84 million

Branches: 54 Employees: 360

62

Alamo Iron Works, Inc.

San Antonio, Texas

Anthony Koch, President

1998 Sales: $83 million

Branches: 5 Employees: 500

63

The McGraw Group

Richmond, Va.

Ted Cowie, Executive VP & COO

1998 Sales: $82 million

Branches: 22 Employees: 300

64

Curtis Industries

Mayfield Heights, Ohio

A. Keith Drewett, President and CEO

1998 Sales: $81 million

Branches: 5 Employees: 960

65

Rero Distribution Companies, Inc.

Rochester, N.Y.

J. Richard Wilson, Chairman

1998 Sales: $80.7 million

Branches: 4 Employees: 205

66

The Ross-Willoughby Co.

Columbus, Ohio

Ronald J. Cory, President

1998 Sales: $78.2 million

Branches: 9 Employees: 250

67

Lewis-Goetz & Co., Inc.

Pittsburgh, Pa.

David Goetz Sr., President

1998 Sales: $74.5 million

Branches: 12 Employees: 265

68

Valin Corp.

Sunnyvale, Calif.

Alan Vidinsky, Chairman

1998 Sales: $73.35 million

Branches: 2 Employees: 100

69

Hypower/Bearing & Transmission

Saskatoon, Saskatchewan

Brian Eidem, President

1998 Sales: $73.3 million

Branches: 40 Employees: 400

70

Engman-Taylor Co., Inc.

Menomonee Falls, Wisc.

Richard W. Star, President

1998 sales: $72.5 million

Branches: 6 Employees: 188

71

MSCO Inc. (Martin Supply Co.)

Sheffield, Ala.

Don Ruggles, CEO

1998 Sales: $72.4 million

Branches: 16 Employees: 256

72

Power/mation Division, Inc.

St. Paul, Minn.

Chris Reed, President

1998 Sales: $72 million

Branches: 9 Employees: 198

73

Bearings & Drives, Inc.

Macon, Ga.

Andrew H. Nations, President

1998 Sales: $68 million

Branches: 34 Employees: 300

74

Duncan Equipment

David Ragland, CEO

Oklahoma City, Okla.

1998 Sales: $67 million

Branches: 6 Employees: 180

75

Prime Technology, Inc.

Grand Rapids, Mich.

Phil Pachulski, President

1998 Sales: $65.4 million

Branches: 3 Employees: 62

76

Orr Safety Corp.

Louisville, Ky.

Clark "Bud" Orr, Jr., Chairman and CEO

1998 Sales: $65 million

Branches: 8 Employees: 240

77

Industrial Equipment Co., Ltd.

Delta, British Columbia

Gordon Lindemere, President

1998 Sales: $63 million

Branches: 22 Employees: 230

78

A.I.M. Supply

Largo, Fla.

Michael Huling, President

1998 Sales: $60.06 million

Branches: 8 Employees: 243

79

Maher Tool Supply Co.

Saginaw, Mich.

Barbara Maher Lincoln, CEO

1998 Sales: $60 million

Branches: 5 Employees: 110

80

Ohio Transmission & Pump Co.

Columbus, Ohio

Philip R. Derrow, President & CEO

1998 Sales: $58.7 million

Branches: 15 Employees: 240

81

Womack Machine Supply

Dallas, Tex.

R. C. Womack, President

1998 Sales: $57.8 million

Branches: 12 Employees: 140

82

Iowa Industrial Products, Inc.

Des Moines, Iowa

Daniel L. McIlhon, Chairman

Edward J. McIlhon, President

1998 Sales: $57 million

Branches: 4 Employees: 165

83

Questron Technology, Inc.

NASDAQ: QUST

Boca Raton, Fla.

Dominic Polimeni, President

1998 Sales: $56.96 million

Branches: 16 Employees: 266

84

Zatkoff Seals & Packing

Farmington Hills, Mich.

Gary Zatkoff, President

1998 Sales: $56.6 million

Branches: 8 Employees: 165

85

Endries International, Inc.

Brillion, Wisc.

Robert Endries, President

1998 Sales: $56 million

Branches: 55 Employees: 355

86

Safeco, Inc.

Kingsport, Tenn.

Bodie Scott, President

1998 Sales: $51.2 million

Branches: 18 Employees: 145

87

Apache Hose & Belting

Cedar Rapids, Iowa

William Nissen, President

1998 Sales: $51.08 million

Branches: 5 Employees: 250

88

Windsor Factory Supply Ltd.

Windsor, Ontario, Canada

Wes Delnea, President

1998 Sales: $49.58 million

Branches: 6 Employees: 170

89

Century Sales & Service Ltd.

Edmonton, Alberta Canada

Ron Pearson, President

1998 Sales: $48.24 million

Branches: 12 Employees: 240

90

The Indusco Group

Baltimore, Md.

Henry Schloss, Chairman

1998 Sales: $48.2 million

Branches: 19 Employees: 300

91

A-C Supply Co.

Milwaukee, Wisc.

Thomas G. Schuster, President

1998 Sales: $48 million

Branches: 12 Employees: 160

92

Warner Industrial Supply

Minneapolis, Minn.

Jim Zechmann, President

1998 Sales: $47.50 million

Branches: 9 Employees: 140

93

J. Lee Hackett Co.

Farmington, Mich.

J. Lee Juett, President

1998 Sales: $45.8 million

Branches: 4 Employees: 35

94

Drago Supply, Inc.

Port Arthur, Tex.

Joseph P. Drago, President

1998 Sales: $45.3 million

Branches: 8 Employees: 190

95

General Tool & Supply

Portland, Oreg.

Bill Derville, President

1998 Sales: $43 million

Branches: 2 Employees: 115

96

Samson Industrial Corp.

Tulsa, Okla.

David Hancin, President

1998 Sales: $43 million

Branches: 12 Employees: 210

97

Century Fasteners Corp.

Elmhurst, N.Y.

Evan Stieglitz, President

1998 Sales: $42.3 million (FY end 7/31/98)

Branches: 11 Employees: 190

98

Standard Supply & Hardware Co.

New Orleans, La.

Mac Hadden, President

1998 Sales: $42.1 million

Branches: 6 Employees: 142

99

Moody-Price, Inc.

Baton Rouge, La.

Danny A. Daniel, Sr., President/CEO

1998 Sales: $39.6 million

Branches: 8 Employees: 107

100

Cincinnati Belting & Transmission

Cincinnati, Ohio

James E. Stahl, Jr., President

1998 Sales: $39.1 million

Branches: 1 Employees: 92

Top 100 on Disc

Industrial Distribution's Top 100, complete with addresses and phone numbers, is available on disc for $245.00. For more information, call (617) 558-4504.