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ABM Sales Increase 31 Percent

Despite one of the most historically challenging economic climates for doing business, ABM Industries, Inc. is reporting a 31 percent increase in revenue for the fourth quarter, though its profits declined.

The company reports a profit of $11.6 million, or 23 cents a share, on sales of $905.8 million, or compared to a profit of $15 million, or 30 cents a share, on sales of $691.4 million in last year’s fourth quarter.

For the full year, ABM increased revenues by 34 percent, to $3.6 billion, compared to ’07 revenues of $2.7 billion. Full-year net income was $45.4 million, or 88 cents a share, compared to $52.4 million, or $1.04 per diluted share, for fiscal year 2007. Net income for 2008 includes a $7.3 million loss related to the company’s former Amtech Lighting Services business.

“ABM produced strong operating results for the fourth quarter and the fiscal year, despite one of the most historically challenging economic climates for doing business,” said Henrik Slipsager, president and CEO of ABM Industries. “The company’s doubledigit growth in revenues, operating profit and adjusted EBITDA for the full year demonstrates the strength of our businesses.”

As previously announced, during the fourth quarter, the Company completed the sale of substantially all of the operating assets of its Amtech Lighting Services business to Sylvania Lighting Services, a subsidiary of OSRAM Sylvania The proceeds already received from the sale of the lighting business, and amounts anticipated to be realized over time from retained assets, primarily receivables, are expected to total approximately $70 million to $75 million.

Slipsager continued: “Given economic and market conditions, we are conservatively managing resources and expenses. We lowered the company’s debt by $86 million, to $230 million, compared to the level at Jan. 31, 2008. Operating cash flow from continuing operations improved by $4.7 million for the year, and by $15.1 million compared to the third quarter of 2008.”

The company has assets of $1.55 billion, and liabilities of $905 million.

ASTM Standard Would Measure Vacuum Cleaner Energy

Determining and potentially reducing the amount of energy expended by vacuum cleaners is the purpose of a proposed new ASTM international standard, WK21491, Test Method for Determining Energy Consumption of Vacuum Cleaners Relative to Cleaning.

The proposed standard is being developed by the Task Group on Energy Usage and Performance, (F11.20.04), under the jurisdiction of Subcommittee F11.20 on Performance (Test Methods). F11.20 is part of ASTM International Committee F11 on Vacuum Cleaners.

Developing the proposed standard is a two-part process, said Ron Battema of Compliance Consulting, Inc., and an F11 Committee member. “The first part is to develop a method for measuring the power consumption of the vacuum cleaner using methods already contained in other standards, then calculating the amount of energy used over time. The second step is to develop a simplified cleaning procedure to relate the amount of energy used to cleaning effectiveness, thus providing an overall energy efficiency rating.”

The impetus behind the development of WK21491 was discussions that the EPA and Wal-Mart have had with the Association of Home Appliance Manufacturers.

The AHAM Floor Care Council voted to have the EPA develop an Energy Star program for vacuum cleaners. AHAM also requested that Committee F11 develop test methods that will calculate the amount of energy used by a vacuum cleaner relative to cleaning carpet.

Manufacturers will use the proposed standard to develop and improve products, while the EPA Energy Star program will use it to apply ratings to those vacuum cleaners that qualify.

“Ultimately, it will be the consumers who will benefit by having a program in place that helps them determine the best product for their use,” says Battema. “It is important to remember that only the top 25 percent of products submitted will be eligible for Energy Star. These will represent the vacuum cleaners that provide the most efficient energy use and highest cleaning efficiency.”

Committee F11 welcomes participation in its standards developing activities.

“Committee F11 and Task Group F11.20.04 are always looking for companies, organizations and interested individuals to help in the development and application of new standards,” says Battema, who notes that organizations and individuals that would fall into the general use category are especially sought by F11.

For technical Information, contact Ronald Battema, Compliance Consulting Inc., Bristol, TN, (rbattema@charter.net). Committee F11 meets April 20-22, 2009, during the April committee week in Vancouver, BC. For ASTM meeting or membership information, email bmurphy@astm.org.

Tennant to Cut Workforce by 8 Percent

Tennant Co., maker of floor cleaning equipment, cut 240 employees because of slow sales, in December.

The company will reduce its global work force by about 8 percent, which will save the company $20 million. Tennant will take a $15 million charge to cover severance packages and other expenses related to the layoffs.

“Demand for our equipment is much weaker than projected, and we do not see a quick recovery,” said Chris Killingstad, the company’s president and CEO. “Therefore, we must take the unfortunate action of reducing our work force, which we believe is necessary to better weather this downturn.”

Tennant is planning no wage or salary increases for 2009. In October, the company reported thirdquarter earnings of $14 million, or 76 cents per share, up from $11 million, or 57 cents per share, during the same period last year.

Tennant’s revenue totaled $185.9 million in the third quarter, up from $161.3 million during the same period last year.

Revenue increased on stronger sales in all regions and acquisitions in the first nine months of 2008, the company said. North American net sales increased by 2.4 percent to $107.2 million, up from $104.7 million in third quarter of 2007.

Sales increased in Europe, the Middle East and Africa by 31.4 percent, to $55.3 million, up from $42.1 million in the same period in 2007.

The company has assets of $382 million, and liabilities of $130 million.

LEED 2009 Passes Member Ballot

LEED 2009, the long-awaited update to the internationally recognized LEED green building certification program, has passed member ballot, and will be introduced in 2009 as the next major evolution of the existing LEED rating systems for commercial buildings.

It includes a series of major technical advancements focused on improving energy efficiency, reducing carbon emissions, and addressing other environmental and human health outcomes.

LEED 2009 will also incorporate highly anticipated regional credits, extra points that have been identified as priorities within a project’s given environmental zone. LEED has also undergone a scientifically grounded re-weighting of credits, changing allocation of points among LEED credits to reflect climate change and energy efficiency as urgent priorities.

This will be one of the most significant changes to the rating system, and will increase the importance of green building as a means of contributing immediate and measurable solutions toward energy independence, climate change mitigation, and other global priorities.

LEED 2009 incorporates eight years worth of market and user feedback in the form of precedent-setting Credit Interpretation Rulings, which will ensure clarity for project teams. Coupled with a credit alignment structure designed to create a more elegant and harmonized rating system, LEED 2009 will reset the bar for the certification of high-performance green buildings.

Process innovation in how new technical advancements are incorporated into LEED will also be introduced alongside LEED 2009, including a “pilot process” for individual credits that will allow major new technical developments to be flexibly trialed, evaluated, and incorporated into LEED.

“The conclusion of the balloting  process marks the culmination of tireless work done by representatives from all corners of the building industry,” said Brendan Owens, vice-president, LEED Technical Development, U.S. Green Building Council. “We have the deepest gratitude for our volunteer leaders, and for their bold steps towards resetting the bar for green building leadership and challenges the industry to move faster and reach further.”

Detailed information about specific proposed technical changes to the rating system can be found in the background documents that accompany the public comment forms at www.usgbc.org.

FBI Building Goes Platinum with USGBC

USAA Real Estate Co. has announced that the FBI’s Regional Facility in Chicago has earned LEED certification for Existing Buildings Operations and Maintenance (LEED EBOM) at the Platinum level.

The facility is the first Platinum recipient in the world under the LEED EBOM program, and the first LEED EB Platinum rated building in Chicago, and one of only sixteen LEED EB Platinum projects in the world. Fifteen of these projects are currently located in the United States.

“This accomplishment is not just a culmination of the efforts of everyone on our team and our valued FBI and GSA partners, but it is a measure of our efforts to drive the business case for efficiency and sustainability,” says Pat Duncan, chairman and CEO of USAA Real Estate Company. “We continually strive to improve the financial and environmental performance of our real estate portfolio and in so doing, drive improved comfort, lower operating costs and provide a healthier environment and community for our tenants.”

Property Management utilized USAA Real Estate Company’s sustainability platform that allowed them to achieve the goals of reducing carbon emissions, promoting tenant satisfaction and awareness, thus lowering operating costs.

USAA Real Estate Company also acknowledges the FBI and the GSA for their assistance and support during their process to improve the building’s environmental performance using the LEED rating system.

“It’s exciting for us to be part of such a significant achievement,” said Robert D. Grant, Special Agent-in Charge of the FBI’s Chicago office. “The quality of service that USAA has provided since we occupied our new home over two years ago has been unparalleled, showing that it’s possible to be environmentally friendly without sacrificing on service.” Mr. Grant offered his congratulations to USAA Realty Management on receiving this recognition.

USAA Real Estate Company has over $5 billion of owned assets. It is a subsidiary of USAA, which has been serving military families since 1922.

Zep Cuts Workforce by 5 Percent

Zep Inc., a producer of cleaning and maintenance solutions, has announced that, as a result of significantly lower customer orders, it is reducing its nonsales workforce by 5 percent.

The company said it began experiencing a significantly lower order rate in October, as a result of general economic conditions while continuing to experience high raw material input costs. The company initiated a new set of non-sales headcount reductions in November and is expected to have most of these reductions complete by the end of its second fiscal quarter.

As a result of this workforce reduction, the company expects to report a restructuring charge of approximately $1.9 million in the first fiscal quarter of 2009, which ended November 30. In addition, the Company announced an immediate hiring freeze of all non-sales positions throughout the organization.

“In response to widely-publicized economic headwinds, weaker-than-expected volumes, and continued high raw material costs, we made the decision during the first quarter to reduce our workforce,” said John K. Morgan, chairman, president and CEO of Zep, Inc. “While this was a difficult decision, we are operating in a rapidly declining and much broader economic downturn than we initially anticipated and believe it was prudent to reduce our cost structure in response.”

In addition to the workforce reduction the company has already begun implementing, it will further reduce costs in other areas as necessary. “These are never easy decisions to make, and I certainly understand the impact this will have on our associates,” said Morgan. “Despite this reduction in our staffing levels, we believe it is important to continue to seek and hire experienced and qualified sales representatives.”

Zep had fiscal year 2008 sales of over $575 million.

Team Clean Founder a Women of Distinction

Donna Allie, founder of Team Clean, has been named a Woman of Distinction by the Philadelphia Business Journal and the National Association of Women Business Owners.

Allie and 24 other honorees received the award at a gala ceremony and dinner at the Sheraton Philadelphia City Center in December. She was also featured in a profile in the November 21, 2008 editions of the Philadelphia Business Journal.

“It’s an honor to be included in this prestigious group of accomplished business women,” said Allie. “All of us at Team Clean look forward to continue growing a sustainable business, built for the future, with an emphasis on ‘green-collar jobs” and implementing additional green initiatives as that continues to evolve as a concern for our industry and our customers.”

The president and founder of Team Clean (a provider of janitorial services in the Philadelphia region), Allie launched the company in the mid-1980s as a solo entrepreneur, and has grown the company to over 600 employees and over $16 million in sales. The company she founded on a shoe-string has been named as the #1-ranked Minority-Owned Business in Philadelphia by the Philadelphia Business Journal for the past two years.

Team Clean serves a variety of clients in government, education, industry, professional offices, sports and entertainment venues and events. Among the highlights of the company’s growth are clients such as Cheyney University and the National Constitution Center.

Originally unable to find employment in her chosen field after college graduation, Allie was a single parent determined to find a way to support herself and her child. She had accompanied a friend on a job cleaning a home, and realized that there was an excellent income potential in cleaning houses.

She answered newspaper advertisements for “cleaning ladies,” and began cleaning homes throughout Philadelphia’s suburban Main Line. Team Clean grew when Allie began to respond to those newspaper ads by hiring women herself and sending them off in pairs to clean homes, establishing the burgeoning company’s “team” approach to cleaning. She took her first commercial contract in 1985 with the Upper Main Line YMCA.

In addition to her selection as one of the 2008 Women of Distinction, Allie has previously been the recipient of a number of professional awards. In April 2007, she was honored by the Philadelphia Phillies with the inaugural Most Valuable Diverse Business Partner during ceremonies on Jackie Robinson Day at Citizens Bank Park.

PepsiCo HQ LEED Silver Certified

PepsiCo’s downtown corporate plaza in Chicago has received the USGBC’s Leadership in Energy and Environmental Design (LEED) Silver Certification for reducing energy use by 10 percent in less than a year, cutting water to 37 percent below Energy Policy Act performance standards, and eliminating almost 226 metric tons of greenhouse gas emissions through energy saving programs.

“Our LEED certification is a tremendous accomplishment and a testament to the passion of our employees who created a ‘Green Team’ devoted to making environmental responsibility an integral part of our corporate culture,” said Jim Lynch, senior vice president North America Beverages Supply Chain. “We consider this achievement just one step in our journey to help realize a better tomorrow for our environment, community, associates and our business.”

As an employee-established environmental committee, the PepsiCo Green Chicago Team focused on four critical elements in the large-scale effort to obtain LEED certification:

— Energy savings: The Green Team was able to keep all employees engaged and aware of their daily energy use through employee-nominated floor leaders;

— Waste reduction: Monthly contests were held that pit each of the 16 floors against each other in competition to reduce waste and both winners and losers were announced internally;

— Recycling: A formal recycling program was also started that focused on recycling 100 percent of the recyclable glass, paper, plastic, cardboard, batteries, printer/fax cartridges, and light bulbs discarded in the Chicago Plaza’s refuse bins.

The program has diverted 70 percent of the Chicago Plaza’s solid waste to recycling centers so that it can be beneficially recycled and reused instead of being disposed in local municipal landfills;

— Air quality: The Plaza replaced all janitorial and cleaning products with alternative cleaning products that meet the USGBC’s stringent Sustainable Cleaning Products and Materials standards and improved the building’s HVAC system to be more efficient.

“Our goal in the beginning was to shift the cultural perspective and instill a sense of environmental responsibility,” said Meagan Smith, marketing manager, Quaker Foods & Snacks and Green Team cofounder.

“The Silver LEED certification not only reinforces our mission, but also sets a serious example for others in the industry that employees can evoke change.”

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