Categories
Brooks

Brooks Has Record Global Growth at Nearly 30 Percent

(BRK.A), (BRK.B)

With a clear focus on delivering the best gear and running experiences for runners worldwide, Berkshire Hathaway’s Brooks Running Company has announced record global growth as it closed out the third quarter of its fiscal year.

Year to date, Brooks reported a 29-percent increase in global revenue driven by a 32-percent increase in global footwear sales.

Success of the company’s footwear business in the third quarter was driven by franchise products such as the Ghost and Adrenaline GTS, which are up 52 percent and 32 percent respectively year to date. Brand new footwear styles that launched in the last 18 months including the Revel, Levitate, Bedlam and Ricochet are also resonating with customers and achieving strong sales in their inaugural period.

While the performance running category continues to face headwinds, Brooks brought new runners to its brand across all channels. According to The NPD Group’s Retail Tracking Service, Brooks grew its total U.S. adult performance running footwear market dollar share to 12.4 percent year to date through August 2018, moving into the No. 2 position within the category.

In the 12 months ending August 2018, the company also gained 4.4 share points in the $100 and above (average selling price) segment of the adult running performance running footwear category, making it the No. 1 brand with 23 percent dollar share (rolling year ending August 2018).

In addition to success with runners, Brooks also received product awards from industry experts across the globe, including:

• Editor’s Choice from Runner’s World for the Ghost 11 and Caldera 2;
• Best Buy from Runner’s World for the Ravenna 9;
• Gear of the Year from Outside Magazine for the Bedlam and Mazama 2;
• Editor’s Choice from Competitor for the Levitate 2;
• Editor’s Choice from Outdoor Gear Lab for the Adrenaline GTS 18;
• Best Running Shoe under $100 from Gear Patrol for the Launch 5;
• Sole Mate award from Women’s Running for the Glycerin 16;
• Editor’s Choice (Best Energize Return) from Canadian Running for the Levitate 2;
• Editor’s Choice from Women’s Running UK for the Launch 5 and Levitate 2;
• Editor’s Choice from Trail Runner for the FastForward Crossback;
• Best Sports Bra from Siftung Warentest for the Juno.

“The growth we’re seeing at Brooks is incredibly exciting because it indicates our brand is resonating with runners who are choosing our gear as they head out the door on their runs,” said Brooks CEO Jim Weber. “We are more focused than ever on delivering the best gear for all who run and inspiring more people around the world to run and be active.”

Increased revenue across the world contributed significantly to Brooks’ overall growth. In the Europe, Middle East and Africa region, year-to-date revenue grew 27 percent led by Germany, Austria and Switzerland. Similarly, the Asia Pacific and Latin America region sustained the upward sales trajectory it ignited early in 2018, reporting a 25-percent increase in year-to-date revenue led by Australia.

Brooks also announced it is expanding its global footprint in key running markets including India, South Korea and Mexico. In August, Brooks relaunched its brand in South Korea and opened a flagship store in Gangnam-gu that houses a Brooks retail store, workout space, corporate offices and a runner’s hub, all a short jog from the Han River lined with miles of running paths.

The brand also launched for the first time in India and is rapidly growing its presence in this important market, expecting to be available in more than 20 stores and on the Amazon India platform by the end of 2018.

Later this year, Brooks will launch in Mexico with a flagship store; partnerships at popular sporting goods and department stores including Marti Sports, Liverpool and Palacio de Hiero; and a branded web experience at www.brooksrunning.mx.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Fruit of the Loom

Boxercraft Will Manage Russell Athletic’s Collegiate Business

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Starting in October 2018, Boxercraft will officially manage Russell Athletic’s collegiate business including sales, fulfillment and all associated licensing obligations. The companies are currently coordinating with all licensing agencies, along with the colleges and universities on this opportunity. In addition to servicing the collegiate market, Boxercraft will also assume Russell Athletic’s Minor League Baseball rights.

In October 2017, Russell Athletic’s announced it was transitioning away from the team uniform business to focus on the consumer retail market.

“Over the past year Russell Athletic has been re-orienting our strategy to provide additional focus on our branded retail business,” said Matt Murphy, Russell Athletic vice president. “This more consumer-focused strategy will cross multiple retail segments, engaging a new, younger generation of Russell Athletic fans, including the college channel. Boxercraft has a world class service model, is well established in the collegiate market and continues to invest for future growth, making them a great strategic partner.”

In July 2018, Russell Athletic and Boxercraft announced a partnership that named Boxercraft as the exclusive decoration, marketing and sales partner for Russell Athletic’s collegiate licensed business.

Russell Corporation was acquired by Berkshire Hathaway in 2006 for $600 million and became a division of Fruit of the Loom. Its business had peaked a decade earlier when in 1992 it landed a five-year contract with Major League Baseball as the exclusive provider of uniforms. By 1995, the company was generating $1.25 billion in annual sales, and had 18,000 employees.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Fruit of the Loom

Fruit of the Loom Forgoes Retails Stores for New Product Line

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What would seem to be the ultimate retail brand, Fruit of the Loom, which is found in every Walmart across the U.S., is going another way with its new Seek No Further™ collection.

The company bills the clothing line as its most stylish and versatile women’s clothing line to date. Bringing together contemporary fashion and effortless style, Seek No Further is meant to be mixed and matched seamlessly so women everywhere can create looks they love as they transition from day to night and work to play.

The big news for Fruit of the Loom is that other than a pop-up store held Friday, Oct. 12 to Saturday, Oct. 13, in the heart of SoHo, New York City, Seek No Further products will only be available for purchase online on from Fruit.com/Seek-No-Further and on Amazon.

A Fruit of the Loom press release emphasized that the pop-up shop marked the first and only time where customers could purchase Seek No Further pieces in-person.

With much of the retail brick-and-mortar stores market struggling, Fruit of the Loom has been expanding the avenues to buy its products. In November 2017, the company announced a direct to consumer subscription service that enables customers to purchase its products for a 30 percent discount.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions Stock Portfolio

Largest Private Bus Operator in Vancouver Commits to BYD Electric Buses

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BYD Canada has been awarded an order for zero emission, battery-electric buses by WESTCOAST Sightseeing, the first tour company in Canada to order clean energy buses, and the first to commit to having a 100% clean-energy fleet by 2023.

Battery and Electric Vehicle Pioneer BYD is the world’s largest manufacturer of electric vehicles and batteries, and the overwhelming global leader in battery-electric buses.

The largest private bus operator in Vancouver, WESTCOAST Sightseeing has agreed to work exclusively with BYD on converting their entire fleet of 90 buses, which will include open top buses, double decks and singles and others. WESTCOAST Sightseeing will also work with city to develop charging infrastructure that will not only benefit WESTCOAST but many other companies that want to reduce their greenhouse gas emissions and climate impact.

“Our business is built around the natural beauty of our home and we are especially conscious of the impact our day-to-day operations has on the environment,” said Rob Safrata, Chief Executive Officer of WESTCOAST Sightseeing.” We are proudly working towards a greener and more sustainable future. And adding electric buses and boats is the first step to achieve our goal in 2023 of becoming the first Sightseeing firm in Canada with 100% electric vehicles.”

WESTCOAST Sightseeing recently added Electric Harbour tours to its line of sightseeing products, providing the first Harbor tour on a 100% electric boat in Vancouver.

The BYD battery-electric buses will make an immediate improvement to air quality and noise levels for the B.C. region. These buses alone will deliver a reduction in carbon emissions of some 4,500 Metric Tons of carbon emissions per year based on EPA standards.

“CEO Rob Safrata has long held a clean energy vision and we are excited to be working with him,” said BYD Canada’s Vice President Ted Dowling. “This aligns perfectly with the recent announcement by British Columbia Premier John Horgan for the need to find other ways to reduce emissions.”

BYD is the world leader in zero emission buses.

BYD Canada was the pioneer in Canada and is now the market leader. In addition to this BC order, BYD Canada has buses on order or in operation for Société de transport de Montréal (STM) and the Réseau de transport de Longueuil (RTL) in Quebec; Toronto Transit Commission (TTC) in Ontario; and St. Albert (STAT) and Grand Prairie in Alberta. BYD had more electric buses on the Canadian roads than any other firm.

Investing more than $250 million in North America to date, BYD has delivered more than 270 buses in North America; and sold or leased in excess of 600 buses in total to more than 50 municipal, transit agency, university, airport, federal and other commercial and private sector clients in 14 U.S. states, and across 4 provinces in Canada.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Real Estate

Kentwood Real Estate Opens Office in Fort Collins

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Kentwood Real Estate, an affiliate of Berkshire Hathaway, has opened a new office in Fort Collins, Colorado, named Kentwood Northern Properties.

The REALTORS® joining to form the Kentwood Northern Properties team are top-producing brokers Shirley Watson, who will be the office’s employing broker, Catherine Rogers, residential broker-associate, Andrea Stull, residential broker-associate, Kris Laine, commercial and residential broker-associate, William Gedge, office administrator, Tim Gannon, licensed professional assistant, and Carol Kauffman, licensed professional agent.

“The Kentwood Northern Properties office is a welcome addition to our Kentwood family,” said Gretchen Rosenberg, CEO and president of Kentwood. “The brokers joining our team are among the highest caliber luxury real estate agents in the region, and truly embody the culture and professionalism of our distinguished team.”

The Northern Properties office will mark Kentwood’s fourth residential Colorado office, joining Kentwood Real Estate DTC, Kentwood Real Estate Cherry Creek, and Kentwood City Properties in downtown Denver. Kentwood Real Estate also offers a commercial office, Kentwood Commercial, and a leasing and property management office, Denver Rental.

“We are thrilled to join the Kentwood family of distinguished brokers and be part of the esteemed luxury brand,” said Watson. “Kentwood has deep roots in the Denver market and we look forward to continuing to build upon the brand’s legacy throughout Northern Colorado.”

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
HomeServices of America

ReeceNichols Real Estate Creates Initiative to Serve Growing Hispanic Community in Kansas and Missouri

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ReeceNichols Real Estate, the top-ranking real estate company in the Kansas City metropolitan area, is launching an initiative to serve the growing Hispanic community in Kansas and Missouri. This initiative stems from ReeceNichols’ ongoing commitment to serve, reflect, and grow with Kansas City.

President and CEO Mike Frazier stated, “Homeownership is a fundamentally important and rewarding experience. At ReeceNichols, we are committed to serving all members of the communities in which we operate, not only through assisting them with the home buying and selling process, but also through education on how to become a homeowner and how to grow and protect their home and its value. We recognize the complexity of this industry and understand the importance for Hispanics to connect and be accurately informed in their language of preference. Let’s find home together!”

ReeceNichols Real Estate is a Berkshire Hathaway affiliate and a wholly-owned subsidiary of Berkshire’s HomeServices of America, Inc.

Leading ReeceNichols’ initiative is Community Affairs Director, Fabián Gayosso-González. Born and raised in Mexico City, Fabián earned a Bachelor of Arts in International Relations and has worked, among other companies, for the Consulates of Mexico in Kansas City and El Paso, Texas and at a marketing firm that focuses on the Latin market. He specializes in strengthening community partnerships and building strategic alliances to develop, implement, and promote programs and strategies aimed to improve the living standards of the communities.

“With a team of bilingual agents that speak our language (Spanish) and breathe our culture, ReeceNichols is ready to guide Latinos to a rewarding experience, help them reach their goals and get them to the place we all want to be: Home. As an immigrant myself, I understand the various challenges that people, regardless of their cultural, religious or socio-economic backgrounds, face outside their homeland. I am thrilled to lead this initiative at ReeceNichols to strengthen the communities we serve,” Gayosso said.

Although the focus will initially be on the local Hispanic community, this foundation will allow ReeceNichols to better reflect our current and evolving community within our agent population, leadership and client base. We realize our business is based on relationships and that every individual interaction makes a difference. We are committed to being a trusted resource for both our agents and the community and to ensuring exceptional service and a transparent process.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
BNSF

BNSF Receives $22.6 Million State Grant for Clean Technology Pilot Program

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BNSF Railway may have scrapped its plan for liquid natural gas powered engines, but that doesn’t mean it has given up on lower-polluting technology for a host of railroad applications, including locomotives and railyards.

BNSF and the San Joaquin Valley Air Pollution Control District were preliminarily awarded a $22.6 million Zero and Near Zero Emission Freight Facilities grant from the California Air Resource Board to pilot several emissions reducing technologies in and around railyards.

BNSF will collaborate with various industry partners to test the feasibility of these technologies.

“BNSF is focused on continuing to reduce our environmental impact, and we’re committed to doing our part to test and prove the commercial viability of emerging technologies that reduce emissions,” said John Lovenburg, vice president, Environmental.

These initiatives will build on BNSF’s existing investments in sustainable technologies including idle control, electric wide-span cranes, electric hostlers, automated gates at its intermodal facilities, and Tier 4 locomotives. As part of the project, BNSF will partner with GE Transportation on a battery-electric locomotive that will be paired with diesel locomotives to power a freight train traveling from Stockton to Barstow.

Transportation will develop an all battery-electric locomotive to validate the technology’s tremendous operational benefits and growth potential in the freight rail industry. The company will design and build an AC Evolution Series locomotive featuring an overall energy-management system, including onboard energy storage, which coupled with advanced system-optimization controls will improve performance. This battery-electric locomotive will generate 2,400 kilowatt-hours of power and could potentially reduce a freight train’s total fuel consumption by at least 10 to 15 percent.

“Battery-powered or hybrid locomotives are promising technologies for the rail industry with the potential to reduce operating costs and emissions,” said Dominique Malenfant, vice president, Global Technology, GE Transportation. “This project will give us tremendous insight into the capabilities of battery power and the best operational methods of leveraging the technology. It will accelerate the development of this cleaner, more efficient solution for the freight rail industry.”

In addition, two hybrid rubber-tire gantry cranes from Mi-Jack will be piloted; one at the Stockton Intermodal Facility and another at the San Bernardino Intermodal Facility. The hybrid cranes, when compared to their diesel counterparts, have the ability to reduce emissions by 70 percent.

A Taylor all-electric side loader will also be piloted at the San Bernardino Intermodal Facility. Finally, BNSF will partner with SH&H, a drayage truck provider, to demonstrate a BYD all-electric drayage truck in San Bernardino.

The equipment will be manufactured in 2019 and deployed in 2020. The grant will cover approximately half the cost of what is estimated to be a $45 million project. The remaining amount will be funded by BNSF and the other corporate partners.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
McLane

McLane Opening New Texas Distribution Center in Fort Worth

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Berkshire Hathaway’s McLane Co. Inc. will have a new distribution center in Fort Worth, Texas open in March.

The site, dubbed McLane North Texas, will be located at 7550 Oak Grove Road in Fort Worth.

The 625,000-square-foot facility includes ambient, cooler and freezer capabilities. It is currently undergoing renovations to meet the company’s specifications and standards.

The company estimates that the facility will reach full utilization by December 2019.

“McLane North Texas continues the company’s strategic initiatives which drive customer results and position the company for growth into the future,” said Lee Cobb, regional vice president of McLane Grocery.

Craig Rosenthal, a 30-year supply chain veteran, will lead the opening and continued operation of the site.

Rosenthal is currently the division president of McLane Southern in Brookhaven, Mississippi.

McLane North Texas’ service territory will primarily be the Dallas-Fort Worth metroplex, as well as portions of Kansas, Oklahoma, Arkansas and Louisiana. The division is expected to employ approximately 600 people, including 450 distribution center workers and 150 drivers.

Temple-based McLane is one of the largest supply chain service providers in the United States, offering grocery and foodservice supply chain solutions for convenience stores, mass merchants, drugstores and chain restaurants.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions Stock Portfolio

Axalta Coating Systems Parts Ways with Newly Hired CEO After Investigation

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Axalta Coating Systems Ltd. has parted ways with its recently hired chief executive officer, Terrence Hahn, after only five weeks on the job. The dismissal came after an internal investigation turned up conduct that Axalta “believes was inconsistent with company policies.” The chief financial officer Robert Bryant is taking over as acting chief executive.

Berkshire Hathaway currently owns 24,264,000 shares of Axalta with a current market value of $736,655,040. Some 20 million of those shares were purchased in April of 2015 from The Carlyle Group.

Axalta has repeatedly been a failed takeover candidate, most recently from Nippon Paint.

Previously the company fought an unsolicited takeover from paint company PPG, and also held merger discussions with Dutch coatings company AkzoNobel.

Axalta was founded in 1866 as Herberts, the original producer of Standox paint products. Spun off of DuPont Performance Coatings in 2013, it was sold to The Carlyle Group and renamed Axalta Coating Systems. Today the company is a leader in coatings for commercial vehicles.

When Berkshire took its stake in Axalta back in 2015, the company looked like a possible merger candidate with Berkshire’s Lubrizol. However, Berkshire’s never been shy about owning significant minority stakes in companies if they are purchased at favorable prices.

Unfortunately, with Axalta continuing to lose money, it looks more likely that Berkshire will simply exit its position through a third-party acquisition.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Berkshire Hathaway Energy

MidAmerican Energy Places 356 MW Order for Wind XI Project in Iowa

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Wind turbine manufacturer Vestas has received a firm order from Berkshire Hathaway’s MidAmerican Energy Company for 356 MW of V110-2.0 MW turbines for the Wind XI project.

The order includes supply and commissioning of the wind turbines as well as a five-year Active Output Management 5000 (AOM 5000) service agreement, Vestas’ full-scope service package maximizing uptime and energy production.

The turbines will be manufactured at Vestas’ Colorado factories and delivery will begin in the second quarter 2019.

“This project will harness low-cost wind energy for MidAmerican Energy’s customers, all while enhancing the reliability and resiliency of the grid. Vestas is proud to deliver its industry-leading technology to this project that will generate hundreds of millions of dollars in economic benefits, including landowner lease payments, tax payments, and long-term secure jobs”, said Chris Brown, President of Vestas’ sales and service division in the United States and Canada.

In August 2016, The Iowa Utilities Board approved our request to invest $3.6 billion to install additional wind turbines in Iowa by year-end 2019. The project – Wind XI – is the largest economic development project in Iowa’s history.

Wind XI will generate an average of approximately $12.5 million per year in property tax payments, $18 million per year in landowner payments, and $48 million per year in state and local expenditures associated with the project.

When fully operational, the Wind XI project will ensure the utility generates approximately 90 percent of its retail energy load from wind.

The Wind XI project consists of multiple sites in Iowa that will be placed into service between 2017 and 2019.

MidAmerican Energy is the largest regulated utility owner of wind energy in the U.S.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.