The Building Products business group manufactures a wide range of air diffusion products and systems, bathware (baths, shower cubicles and luxury whirlpools), and uPVC doors and windows for the residential construction, commercial construction, manufactured housing and recreational vehicle industries. Its range of products places the business group as one of the largest manufacturers of air distribution products in the US. Building Products sells its products through a range of distribution channels, principally to suppliers to the construction industry, building contractors and retailers for both the new build and refurbishment sectors. Building Products sells principally in the US, but also in Canada, Mexico, India, Thailand, China and Europe. In 2008, the business group expanded its range of indoor air quality products through the acquisition of Trion, adding manufacturing and distribution capabilities in the US and China, and expanded its product offering in India through the acquisition of Rolastar, a manufacturer, distributor and installer of off-site ducting. Further geographic expansion was achieved through the signing of a joint venture to manufacture and distribute air systems components products in the Middle East. The primary raw materials used by Building Products are steel, aluminium and vinyl. Building Products spends approximately $600 million each year on raw materials.
Air Systems Components
The Air Systems Components operating segment provides air distribution solutions for the HVAC industry. Products include ducting, louvres, grilles, registers, diffusers, dampers, smoke vents and chimney products. Products are sold primarily in the US, Canada, Mexico, India, Thailand, China and Europe. The majority of this segment’s sales pass through manufacturers’ representatives or are sold through wholesalers. The balance of sales are made direct to OEMs, national accounts and retail customers.
Air Systems Components designs and manufactures a range of air system products for industrial, institutional and commercial applications. Hart & Cooley and Selkirk supply the residential and light commercial markets in the US, Canada and Mexico, marketing their products primarily through wholesale distributors and retail customers. Ruskin produces and markets commercial and industrial air system components while Ruskin Air Management, a UK business, markets its products principally in the UK and continental Europe.
Other Building Products
Other Building Products comprises Lasco Bathware, a leading manufacturer of bath tubs and shower enclosures and pans in the US, and Philips Products, a manufacturer of doors, windows and ventilation products. Lasco Bathware manufactures around one quarter of all baths in the US as well as an extensive range of luxury whirlpools. It operates from facilities across the US with national distribution to home centres and wholesalers. Products are also sold direct to builders who use the company installation services. Aquatic Industries, a division of Lasco Bathware, produces up-market acrylic whirlpools, principally for the dealer/distributor market in the US and also supplies standard and customised products for hotel and resort developments internationally.
Sales by destination 2008
Sales by end market 2008
Construction sales
by end market 2008
Financial highlights:
Key products:
Key brands:
Air Systems Components
Sales:
$1,112.3m
Operating margin:
9.4%
% of Group sales:
20.2%
Grilles, registers, diffusers, dampers, venting and ducts, fans, louvres and screens
PennBarry
Actionair
Titus
Rooftop Systems
Ruskin
Reliable
Tuttle & Bailey
Krueger
Lau
Milcor
AMPCO
Selkirk
Other Building Products
Sales:
$342.8m
Operating margin:
(7.0)%
% of Group sales:
6.2%
Baths, showers, whirlpools, aluminium and vinyl windows and doors
Lasco Bathware
Aquatic
Philips
Trion
Key markets served:
Residential construction
Commercial construction
Recreational vehicles
Manufactured housing
Remodelling and repair
Key market drivers:
Housing starts
Square feet of construction
Construction value
Recreational vehicle production
Manufactured housing shipments
Architectural billings
Air Systems Components
Top five customers (% of Group sales)
- York International
0.5%
- Tom Barrow
0.5%
- Watsco
0.5%
- Carrier Group
0.5%
- Norman S Wright
0.5%
Other Building Products
Top five customers (% of Group sales)
- Home Depot
0.9%
- Ferguson Enterprises
0.6%
- Thor Industries
0.2%
- Fleetwood Enterprises
0.2%
- Dapsco
0.2%
RUSKIN - ‘Green’ initiatives in Building Products
In 2008, Ruskin introduced its energy recovery ventilator, which achieves energy savings through recycling conditioned air.
