Saturday, October 8, 2011

Roofing News - For Sale!

Rollformer going on the Market?

Which one? Everyone has been looking at BlueScope Lysaght - but one of the other companies in the roofing rollforming industry is on the open market.
Roofing Rollformer For Sale?
The word is that valuations of machinery and accounts are being called in by Head Office! Not quite released yet on the open market apart from here! This is the second instance of the For Sale sign going out in a time when manufacturing is not looking good. A EBIT drop of nearly 72% in last P&L is not going to aid this sale. A valuation of machinery (plant, equipment & property) did not sit well in the last negotiations for this company.

Other News:
  1. Stratco V8 supercar getting plenty of coverage this weekend at Bathurst for those in the steel shed industry. The driver of the Stratco car is in the TOP 10 on the grid for the big Sunday Race. Good Luck guys!
  2. Metroll winning the majority of supply to big commercial projects in SE Queensland.
  3. State manager of a NSW rollforming company ready to jump ship to a smaller company - the writing is on the wall?
  4. Innovation release next week on The Roofer!
Thanks to the Phantom Rollformer for some of the above info!


17 comments:

  1. Maybe their shares have dropped below the magic $ mark.

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  2. I find this hard to comprehende - but makes sense after reducing staff, there was also a rumour that there might be a bit of a restructuring. I had heard they had taken a big hit in EBIT but nothing as high as that. I wonder who is cashed up enough to buy?
    Also begs the question how does this affect the shares buy back? Any news on the four corners expose? I bet Ling is in full damage control Hills seem like they are spiralling out of control! We need more answers Roofer!!

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  3. A few answers:
    1.Buy-back makes sense as not willing to invest cashed up money in the business units - because they want to sell these - probably have more IT purchases in view.
    2. Not many buyers out there to purchase this - missed the real cahnce few years back with Fletchers!
    3. The investigation is not on the lads involved so much - but on the management for knowing about and condoning this behaviour - declaring no knowledge of this - they will be digging a deeper hole! Many current & previous staff up in QLD have complained to Senior Exec's prior to this apparently! (they just keep their heads in the Sand - not for much longer)
    4. Hills seem rudderless and need to sort out their direction - behaving currently as Elders did prior to their downfall!

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  4. The Phantom seems to know more about Hills than the Hills board! Its a shame Woodroofes is going to end up on the dissection table on offer to the highest bidder.
    Is the potential sale limited to just Fielders? I know Orcon also contributed to the poor performance. Hopefully Tinman has some answers being on the inside. Good time to invest in a rollformer with Olympic Dam getting the green light.

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  5. Unfortunately Tinman probably is not able to communicate his knowledge currently - there is a blanket ban on talking - ORDERS. Orrcon will be on the market - but later - Fielders first!

    Investing in Olympic Dam? The rollformer close to the action there is Stramit - totally dedicated to development in this area. Lysaght is too busy trying to work out where there are?

    Where's Trevor & Hoisted? Banga - what do you know?

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  6. Hills are shrinking into an electronics only business, a gold mine while the dollar is so high. The PE ratio and share price of Hills will soar once they get rid of the non-performing steel businesses which are doing it tough with no answers in sight. Rationalisation is the only hope for tube and rollforming in this depressed marketplace, Hills are thinking small, debt free and high share price

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  7. Thanks Hoisted.

    Dumping tube & rollforming is going to be a problem for this bunch (Buyers)! Both will disappear into nothing unfortunately - but once again the Hills board is reactionary - and by the time they solve this problem - the dollar will be low and IT will be another problem on their hands!

    Is there a future for Orrcon, Fielders & Team Poly?

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  8. Whatever Hills lose selling Team Poly, Fielders and Orrcon they will make up many times over in their share price rebound as a high margin high profit electronics specialist. The Sharemarket values earnings and earnings growth, not lazy non-performing assets. Hills have got the writedowns out of the way, now to clear the dud assets. If they're cheap enough someone will buy them, most likely a big overseas player buying up tonnage incl Bluescope

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  9. PS - Word is the new Hills C.O.O. Mike McKinstry is sorting out the good from the bad quickly, expect some big people changes soon.

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  10. Lots of new information to absorb Roofer, been away for 4 weeks visiting the extended family, nothing to report. HOISTED's take on the Hills steel businesses makes sense, I'll ask around.

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  11. Roofer, There's all sorts of rumours doing the rounds. The strongest being a previous owner/manager looking at attempting to buy Fielders. Not sure where the cash would come from but It's a fair bet a NZ company would have a bit more. (not sure what it's worth in this climate, though I suspect cosiderably less than the supposed $110m touted pre GFC)

    Silentwitness, You are right, it is a shame the once fine (and more importantly) ETHICAL company Woodroffe (you spelt it wrong) will be disected. I'm glad Peter W is not around to see the decimation of the company he, and his father Bunny built from their back yard shed. others including Ron Jantzen (NEVER Easling and Altman as suggested in the Roofing week thread 2/9/11) continued to build the company but from the day Peter sold it it's been all downhill since)
    He wanted to keep it SA owned but ultimately (I believe) rued his choice and wished he'd chosen the second bidder.

    Interesting times ahead.

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  12. Yes BANGA, Ron Jantzen was GM of Woodroffe Sheetmetal from about 1964 til 1989 when Detmold and co bought it, soon onselling it to Hills after the banks moved in. Ron went to Eltrak and Stratco briefly before joining Altman and Easling at Fielders in 1993. Ron was reunited with what was left of Woodroffe in 2000 when Fielders and Woodroffe merged. Ron then helped set up Revolution in 2009/2010, where several 20-30 year ex-Woodroffe veterans also work.

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  13. Articles like this is what the forum is all about, great stuff roofer. All i can say is everything is sale for the right price but i cant see anyone coming in for fielders or any other rollformer for that right now. Never say never but i'll believe when i see it.

    BHP's expansion is great for SA and there will be plenty of work for all trades. Roofer, im sure stramit will play a part in the bigger stuff quoted out of adelaide (supermarket,schools and airport) but most stuff will go through two local guys who only use two rollformers, one of which isnt stramit.

    On the industry, the high aussie dollar will see purlin and zinc prices increase as bluescope will look to gain back what was lost with all the importers. This will hurt lysaght,metroll and apex (sa) once there feed runs out and help lysaght and fielders.

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  14. i meant to say lower aussie dollar,sorry

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  15. I agree, the mining $$$ must flow through to the cities soon. Asia won't collapse even if Europe does, mining will be strong for many years to come.

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  16. RBA -how does the rollforming industry gain an upper hand with the multinational mining company contractors? (It also applies to and includes electrical, plumbing, furniture, office supplies, IT industries etc etc). Some of the big contracts for housing, offices etc are arriving from China in flat packs and being assembled on site where manufacturing loses yet the construction gangs are busy. There is an inequality in the big developments. Olypmic Dam will be interesting senario to follow!

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  17. Get Jooliar to back her country instead of allowing it to be pillaged!

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