Global Fastener News

1985 FIN – Emhart Corporation Announces Restructuring

July 25
00:00 2012

 

June 27, 1985 FIN – Emhart Corporation, Farmington, Connecticut, which agreed in April to purchase MITE Corporation for some $125 million, has undergone significant restructuring.
Among other things, the multi-national corporation with extensive fastener interests has created a new products group, Fastening Systems, and has reorganized its executive personnel.
Fastening Systems will consolidate operations in 13 countries. Emhart president and chief operating officer William C. Lichtenfels said the creation of a Fastening Systems group was a “logical evolution,” combining worldwide product lines (chemical and fastener products) with common functions, markets and growth strategies.
Last year the combined sales volume of the chemical and fastener product lines was more than $436 million with an operating income of $55 million.
Lichtenfels said he has appointed a special seven-man executive task force to work out the organizational details of the move.

In addition to creating a new fastener-related product group, Emhart has reorganized its fastener-related executive personnel. Thomas T. Gately will head the Fastening Systems group as vice president. Gately, 54, the group president, joined Emhart in 1979 from Stanley Works where he had been executive vice president. For the past six years he has been vice president and group president of the Hardware group.
Gately’s successor at the Hardware group will be Fred M. Hollfelder. Hollfelder, 51, joined Emhart in 1960. Following several domestic sales assignments, he was named vice president sales and marketing for the company’s subsidiary, International Hardware Company, in Ontario, Canada. In 1976 he was elected president and general manager of that unit, returning in 1979 to the U.S. as president and general manager of the Hardware Division, Berlin, Connecticut.
Succeeding Hollfelder as president of Hardware division is John E. Bradley. Bradley, 46, joined Emhart in 1969 at its Warren division, Michigan, one of the company’s principal U.S. units. In February of this year he left Warren to become executive vice president of the Hardware division.
Also, John E. Lang was named president of Emhart’s Kwikset division. Lang, 50, has a 21-year career at Emhart, joining the Kwikset division as a sales engineer. In 1974 he was named vice president development, and in 1984 executive vice president of the unit. Lang succeeds Joseph Madigan, who retired.

In apparently related moves, Emhart has also sold its Hill Refrigeration Corporation, Trenton, Jew Jersey, to Emerson Quiet Kool, Inc., an affiliate of Jepson Corporation of Chicago for some $60 million, and is close to reaching an agreement to sell Farrel Company, a machinery division based in Ansonia, Connecticut. Farrel makes polymer processing machinery, machine tools and other products for metal manufacturers, and railroads, among other things.
Emhart is trying to reduce its dependence on cyclical capital goods markets and concentrate on more profitable business segments. Proceeds from the Hill sale will be used for general corporate purposes, including the purchase of MITE.

Emhart has been doing well in recent years, though first quarter earning declined from last year. In 1984, net earnings set a record for the fifth consecutive year, increasing 7 percent to $90 million while revenues increased 6 percent to $1.8 billion. Earnings per share improved 7 percent to #3.27, up from $3.06 in 1982. Sales of fasteners in 1984 were $202.3 million, compared with $193.6 million in 1983. About 45 percent of these sales come from domestic sales. Operating income was $32.8 million in 1984, up from $29.5 million in 1983. For the fiscal year ending February 28, MITE has sales of $85.9 million. Approximately 78 percent of MITE’s net sales and 86% of its operating income comes from its fastener-related industry segment. Other Emhart businesses include electronic and electronic components and footwear. ©1985/2012 Fastener Industry News
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