Foodservice Equipment Reports Fortnightly
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Welcome to FER Fortnightly Online Newsletter
November 30, 2006








Economic Report:
Sponsored by:
Delfield Co./Enodis
Consumer Confidence, Expectations Hold Up In November
Maybe Things Weren't Quite So Tough This Summer
China GDP Growth Expected To Top 9% Again; European Outlooks Improve

Regulatory Report:
Sponsored by:
Franke Foodservice Systems
DOE Finally Moves On New Appliance Efficiency Standards
More Cities, Chains Jump On Trans Fat Bandwagon
Philly Health Commish Says City Short Inspectors



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In This Section:
Enodis Board Again Rejects Aga Proposal, Announces Strong Sales And Profits
Reports Shows Schools Save Big By Going Green
RFID Gets Boosts From Spinach Scare
NAFEM Announces Foodservice POS Technical Specs

This issue's Economic ReportSponsor: Delfield Co./Enodis
Regulatory Report
Sponsor: Franke Foodservice Systems

Industry Report Wood Stone Corp.

Enodis Board Again Rejects Aga Proposal, Announces Strong Sales And Profits
The board of directors of Enodis plc has reported it's once again rejected a proposal from Aga Foodservice plc to combine the two companies.

The Enodis board acknowledged it had received a letter from Aga once again outlining its arguments for the benefits of a merger, and suggesting an offer of cash and stock valued at 197 pence per Enodis share.

In a statement released Nov. 17, the board "reiterates its rejection of Aga's merger proposal on the same basis as before." The board repeated its argument that Aga's strong position in consumer appliances would dilute the commercial appliance focus maintained by Enodis. The board went on to add that "Aga's merger proposal and illustrative acquisition terms significantly undervalue Enodis and its prospects."

In a statement released Nov. 20, Aga Chief Executive William McGrath noted the Nov. 17 Enodis statement and said, "We believe that a combination to create a financially strong, well-balanced, leading international supplier of cookers and fridges has compelling strategic and financial logic."

The Aga merger proposal followed earlier proposals from Middleby Corp. and The Manitowoc Co. that ultimately were not completed.

In a separate announcement Nov. 21, Enodis said its sales and profits grew robustly in the year ended Sept. 30. Like-for-like foodservice equipment sales rose 11% for the year with after-tax profits up 55%. Total revenues were £768.3 million ($1.49 billion at Nov. 27 exchange rates) in fiscal 2006, up 15% from fiscal 2005, including acquisitions.

Operating margins rose to 10.7% from 10% in fiscal '05. Revenues were up 7% in North America and 15% in Europe and Asia. Operating profit rose 15% in North America and 26% in Europe and Asia.

 

Section sponsored by Wood Stone Corp.

Reports Shows Schools Save Big By Going Green
If you haven't been looking into green building, you might be flunking an important subject. A recent report shows that schools designed to be energy-efficient and environmentally friendly reaped savings that were about 20 times the additional cost of construction.

The report, sponsored by the U.S. Green Building Council and the American Federation of Teachers among others, reviewed 30 green schools in 10 states between 2001 and '06. On average, the schools cost $3 per sq. ft. more to build than a traditional school. The schools saved $9 per sq. ft. in energy costs, and another $65 per sq. ft. in other costs such as water, reduction of illnesses, teacher retention and increased earnings. For the average school, the savings would be enough to pay for an additional teacher.

The report also found the three major factors discouraging most executives from constructing green buildings are increased construction costs (68%), lack of awareness of the benefits (64%), and difficulty quantifying benefits (47%).


Section sponsored by Wood Stone Corp.

RFID Gets Boosts From Spinach Scare
Radio Frequency Identification technology, which some of you saw last February demonstrated at Foodservice Equipment Reports' Multiunit Foodservice Equipment Symposium in Austin, Texas, may be getting an unintentional boost from the outbreak of E.coli-caused illness from contaminated spinach this fall.

A high profile research project at the University of Florida's Research Center for Distribution and Retailing has been testing the feasibility of using RFID tags to track produce from field to retailer. Most U.S. growers already have ways to track produce, but they're manual and labor-intensive. RFID tags could vastly simplify the process and speed product recalls as well as provide other benefits, according to Steve Dean, director of business development at Franwell, Inc., an RFID supplier and study sponsor.

In Canada, McMaster University in Hamilton, Ontario, announced that it established a dedicated RFID research lab. The McMaster RFID Application Lab will provide a link between academia and industry for researching and developing RFID technology and commercialization. The lab's first pilot program is an equipment management system for Hamilton Health Sciences.


Section sponsored by Wood Stone Corp.

NAFEM Announces Foodservice POS Technical Specs
Technical specs for foodservice point-of-sale systems will soon be available to software and equipment companies. Developed by the Associations for Retail Technology Standards, with input from the North American Association of Food Equipment Manufacturers, the new specs will help enable better exchange of POS and inventory information in POS systems designed for foodservice facilities.

Supported by technology leaders and advocates for XML and Web services industry standards such as Accuvia, Par Technology Corp. and Microsoft, a draft of the new FS-POSLog Foodservice Technical Specification will be available in January for review.

NAFEM's Charlie Souhrada says that should be plenty of time for suppliers to introduce products featuring the new specs at FS/TEC during The NAFEM Show in Atlanta next October.



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