Sales Gains Expected for Household Durables, Says S&P Equity Analyst

Furniture World Magazine

Standard & Poor's has released its forecast for the Household Durables Industry, which includes expectations of low-to-mid-single digit gains in wholesale shipment volumes of appliances and furniture throughout 2002 and 2003. This report from Standard & Poor's, a leader in global financial research and investment analysis, also describes varying outlooks for the industry's largest players. The industry forecast is part of Standard & Poor's Industry Survey on Household Durables, a study produced every six months by the firm's senior equity analyst for household durables. Standard & Poor's Industry Surveys series keeps a watchful eye on 51 U.S. industries, offering insights into trends and conditions that affect leading companies' market performance. According to Standard & Poor's senior equity analyst for this industry, demand for furniture and appliances will benefit from factors including a renewed focus on the home -- "cocooning" -- since the September 2001 terrorist attacks, and the favorable demographics of the baby boomer generation, who have reached a stage in life where they're increasingly concerned with upgrading the contents of their homes. Nonetheless, margins for appliance manufacturers such as Maytag (NYSE: MYG) and Whirlpool (NYSE: WHR) are expected to be squeezed by rising steel prices. "Demand for furnishings and appliances should remain healthy," says Efraim Levy, Standard & Poor's senior equity analyst for household durables and author of the survey. "But reduced consumer confidence, higher joblessness and lower stock markets could limit sales gains." Industry Surveys for Household Durables looks at the issues affecting all segments of the household durables industry in the U.S., including appliances and home furnishings, and the overall competitive analysis. Standard & Poor's Industry Surveys provide a broad and fundamental overview of each industry's structure, its recent performance, and an analysis of trends that will influence it in the future. Each survey is organized into the following sections: Current Environment, Industry Profile/Industry Trends, How the Industry Operates, Key Industry Ratios and Statistics, How to Analyze a Company, Industry References, Comparative Company Analysis, and a Glossary of terms used in that industry. Both text and data are provided, as are references to additional sources of industry information. Two surveys on each industry are published each year. Readers can purchase the Standard & Poor's Industry Survey on Household Durables three ways: online at http://sandp.ecnext.com, by telephone from Standard & Poor's Central Inquiry Department at 212-438-7760, or via e-mail order sent to Central_Inquiry_Unit@standardandpoors.com. Standard & Poor's is a leader in providing widely recognized financial data, analytical research and investment credit opinions to the global capital markets. With more than 5,000 employees located in 18 countries, Standard & Poor's is an integral part of the world's financial architecture. Additional information is available at http://www.standardandpoors.com.