Flanders weathers the Great Recession

Published 4:58 am Tuesday, March 16, 2010

By By KEVIN SCOTT CUTLER
Lifestyles & Features Editor

On a quiet, side road branching off U.S. Highway 264 west of Washington, lies the hub of an international business that reaches far outside Beaufort County.
Flanders Corp.’s local facility is the corporate headquarters of the filters-manufacturing business, according to John Oakley, president and chief financial officer. But it’s part of a much larger picture, he said.
North Carolina is home to four Flanders manufacturing facilities, two in Washington and two in Smithfield. Others are located in Momence, Ill.; Brownesville, Dallas and Rosenberg, Texas; Bartow, Fla.; Salt Lake City; Ardmore, Okla.; and Tijuana and Matamorous, Mexico. A sales office is located in Singapore, according to Oakley.
Not putting all its eggs in one basket has contributed to Flanders’ survival against the current economic struggles plaguing other companies; in fact, the corporation reported a spike in sales last year, according to Flanders officials.
“2009 was a great year for Flanders, demonstrating the effects of changes made by our management team in 2007 and 2008,” said Harry Smith, chairman and chief executive officer, in a recent news release. “Although sluggish new construction and other factors related to the worldwide economy had their impact, we posted solid year-over-year improvement, including increased net sales.”
The corporation continues to put into place plans that should increase efficiency and reduce costs, including consolidation of its manufacturing processes, Smith said. It’s also looking to the future in the planning and manufacturing of new products, including focusing on “green alternatives.”
The company continues to invest in research and development of those new products, with scientists working on a daily basis near the manufacturing facility in Washington.
Flanders reported that revenue for the fourth quarter of 2009 was $55.2 million, compared to $49.8 million in the same quarter of 2008. Overall, the corporation reported $222.4 million in revenue in 2009, up from $217.3 million the previous year. Flanders’ annual net income for 2009 was $7 million, compared to a 2008 net loss of $4.1 million.
“In this very challenging environment, we improved virtually every metric in our balance sheet and reduced our debt during the fourth quarter of 2009,” Oakley said in the release. “Our sales increase over the fourth quarter shows the company’s ability to perform in the face of a difficult business environment and continued pricing pressure.”
Oakley said Flanders’ revenue expectations for this year are between $255 million and $270 million.
Some Beaufort County residents aren’t aware of the scope of the corporation, he said.
“Flanders has two pieces to the business. The first is the retail side, and the second is the commercial and industrial side,” Oakley said in a recent interview. “It’s pretty neat that you’ve got a large industrial business based in Beaufort County.”
The corporation’s customer base includes Wal-Mart, True Value, Lowe’s, Ace, The Home Depot, Ben Venue Laboratories and Johnson &Johnson.
Flanders, which was founded in New York in 1950, initially moved to Beaufort County in the mid-1960s. Its corporate headquarters were later moved to St. Petersburg, Fla.
When Smith assumed leadership of the company in August 2007, one of the first goals was to return the corporate headquarters to Washington. That goal was realized in late 2008.
Contributing to Flanders’ financial success is the work ethics of its local employees, Oakley pointed out.
“Beaufort County should be proud of what its people are doing,” he said.
Oakley added that Flanders is looking to fill what he called “high-level engineering” positions and hire accountants, as well as experienced employees to work in purchasing, quality control and operations.
According to Brenda Davis, vice president of corporate human resources, Flanders strives to promote from within its ranks whenever possible. This means entry-level positions become available in the local job market.
“We need people in customer service and operations, and we provide on-the-job training,” Davis said.
To inquire about possible employment available locally at Flanders Corp., contact human-resources manager Mary Pinkston at 252-946-8081 or mpinkston@ffi.flanderscorp.com.
For more information about Flanders Corp. in general, visit its Web site, www.flanderscorp.com.