Home Depot

Today's Home Improvement Industry News from thehardfax.com and ahma.org

Home Depot Q2 Sales -5%
8.19.08      The Home Depot on Tuesday morning reported fiscal 2008 second quarter consolidated net earnings of $1.2 billion, or $0.71 per diluted share, compared with $1.6 billion, or $0.81 per diluted share, in the same period in fiscal 2007. Earnings per diluted share from continuing operations in the second quarter of fiscal 2008 were $0.71, compared to $0.77 per diluted share in the second quarter of fiscal 2007, a decrease of 7.8 percent.
Sales for the second quarter totaled $21.0 billion, a 5.4 percent decrease from the second quarter of fiscal 2007, reflecting negative comparable store sales of 7.9 percent, offset in part by sales from new stores.
    The full financial press release is here.

Home Depot to Webcast Q2 Earnings Conference
8.5.08      The Home Depot announced today that it will hold its Second Quarter 2008 Earnings Conference Call on Tuesday, August 19 at 9 a.m. ET.
A webcast will be available by logging onto http://www.homedepot.com/ and selecting the Second Quarter 2008 Earnings Conference Call icon. The link will be displayed on the home page as well as under the Investor Relations section. The webcast will be archived and available beginning at approximately noon on August 19.

Second Home Depot Employee Pleads Guilty to Kickbacks
7.14.08        James P. Robinson on Friday of last week pleaded guilty to one count of conspiracy to commit wire fraud and two counts of tax evasion in a case involving kickbacks from foreign suppliers seeking to do business with Home Depot.
    Last month, Anthony Tesvich, another Home Depot buyer, also pleaded guilty to similar charges involving millions of dollars in bribes from foreign suppliers.
    The statement on the case from the U.S. Attorney’s Office for the Northern District of Georgia is here

Home Depot Launches CFL Bulb Recycling Program
6.24.08      The Home Depot today announced the launch of a national CFL bulb recycling program.
    The free service is now available at all 1,973 Home Depot locations in the U.S. Consumers simply bring any expired, unbroken CFL bulb to a store and give them to the store associate at the returns desk. The bulbs will then be handled by an environmental management company for safe transportation and recycling.
    The full press release is here.

Home Depot to Present Update
6.18.08        Home Depot has announced that Paul Raines, EVP U.S. Stores, will present at the Wachovia 18th Annual Nantucket Equity Conference on Tuesday, June 24, 2008 at 1:00 p.m. EDT. The event will be broadcast live and archived at www.homedepot.com under investor relations.

Home Depot Predicts Growth
6.5.08        Home Depot, during a presentation to analysts and investors this morning, said the company’s earnings per share can grow by at least double digits, on a percentage basis, when current business conditions return to “normal.”
Chairman and Chief Executive Frank Blake said the company's longer-term outlook assumes 3 percent to 5 percent sales growth annually.
The presentation has been posted on the Home Depot Investor Relations page here.

Former Home Depot Employee Charged in Kickback Case
5.30.08      Anthony M. Tesvich, a former Home Depot employee, was charged yesterday in the Northern District of Georgia with defrauding Home Depot in a vendor kickback scheme and with tax evasion.
    “This defendant has been charged with taking millions of dollars in secret payoffs from Home Depot’s vendors and then not reporting or paying taxes on that corrupt income,” said United States Attorney David E. Nahmias.
    The press release from the U.S. Attorney’s Office is here.

Home Depot Director Buys $92 Million in Stock
5.27.08      Home Depot Director David H. Batchelder has purchased $91.7 million worth of the company’s stock through partnerships and accounts managed by him, according to a filing with the Securities and Exchange Commission last week.
    According to the filing, Batchelder purchased approximately 3.4 million shares at an average price of $26.99 a share.
    Home Depot SEC filings are here.

Home Depot Income Drops 66%
5.20.08        Home Depot this week reported a 66 percent drop in fiscal first-quarter net income to $356 million, or 21 cents a share, down from $1.05 billion, or 53 cents a share, a year earlier. Excluding a $543 million charge related to store closures and a pullback on store openings, the retailer earned 41 cents a share in the latest quarter.
Net revenue fell 3.4 percent to $17.91 billion as same-store sales fell 6.5 percent.
"The housing and home-improvement markets remained difficult in the first quarter; in fact, conditions worsened in many areas of the country," Chairman and Chief Executive Frank Blake said. "In addition, our decision to close stores and remove planned stores from our pipeline demonstrates our commitment to disciplined capital allocation," said Blake.
    The full financial report is here.

Home Depot Closing 15 Stores, Canceling 50 Openings, Taking $547 Million Q1 Charge
5.1.08      Home Depot this morning announced it is closing 15 underperforming stores and will take 50 previously scheduled new store openings out of the pipeline. As a result of these moves, the retailer said it would record an approximate charge of $547 million in the first fiscal quarter.
    In addition, the company said it would reduce new store capital spending by approximately $1 billion over the next three years.
    The full press release is here.

Home Depot Names Chief Marketing Officer
4.21.08      Home Depot today announced it has named Frank Bifulco senior vice president and chief marketing officer. Bifulco will report to Craig Menear, the Company's executive vice president, Merchandising.
Bifulco will join the Company on April 28. John Ross, who served as the interim head of the Company's marketing department while performing his regular duties, will remain in his role of vice president, Advertising.
Bifulco most recently served as chief customer officer and president of Hasbro North America Sales.
The full press release is here.

Former Home Depot Marketing Exec Lands at Lord & Taylor
4.17.08        Roger Adams, who left Home Depot as Chief Marketing Officer in October of last year after just 12 months on the job, has been named CMO of Lord & Taylor, according to reports.
    The fashion retailer operates approximately 50 stores in the U.S., whereas Home Depot has around 2,255 stores internationally.

Home Depot Pays CEO $8.28M
4.14.08        Home Depot, in filings with the SEC last week, reported providing compensation valued at $8.28 million to new CEO Frank Blake in 2007.
Compensation included a salary of $1 million, a bonus of $500,000 and stock and options awards worth $6.33 million. Blake’s predecessor, Bob Nardelli, received $131.2 million in compensation in 2006, including $98.5 million in severance.
    Home Depot’s SEC filings are here.

Home Depot Agrees to Pay $14.5M to Settle Lawsuits
4.7.08        Home Depot, in a filing with the SEC last week, reported it has agreed to pay $14.5 million to settle a number of shareholder lawsuits going back to 2006 concerning stock option and compensation practices.
    Complete information is contained in the company’s 2007 10-K report here.

Home Depot Cutting HR Position in All Stores
4.4.08      Home Depot announced today that it will eliminate the Human Resources Manager position in all of its nearly 2,000 stores and add more full-time associates to the sales floor.
    Store-level human resource functions will be handled on a district level and at a new HR Service Center to be established in Atlanta.

Home Depot Top IT Executive to Leave Company
4.4.08      Home Depot yesterday announced that Bob DeRodes, executive vice president and chief information officer, has decided to leave the Company at the end of the year.
DeRodes will continue to be responsible for all of the organization's Information Technology until his departure. The company will begin an immediate search for his replacement, and DeRodes will assist with this process as well as the eventual transition of responsibilities to his successor, according to a press release.
The full press release is here.

ICI and Home Depot Launching “Green” Paint
4.1.08        ICI Paints and The Home Depot will launch “the first, truly comprehensive and environmentally friendly paint nationwide in April 2008,” according to a press release. The Freshaire Choice Paint offers exceptional quality, free of volatile organic compounds (VOCs) and is backed by a lifetime guarantee and GREENGUARD certification, according to the release.
    The full press release is here:

Home Depot Opening Central Mexican Distribution Center
3.31.08      Home Depot has announced plans to open a 42,000-square-meter distribution center in the central Mexican city of Pachuca, according to a press release.
    The new center is expected to open by the end of this year. It will initially handle about $600 million in products for distribution to over 60 stores in the area.

Home Depot Holding Open to Buy Days in July
3.18.08      Home Depot’s next Open to Buy Days, scheduled for July 15-16 in Atlanta, will provide an opportunity for non-incumbent vendors that have not yet met with The Home Depot to meet face-to-face with a merchant who can review their products for possible purchase.
An application to participate in the Open to Buy program is now available online. You will be asked to fill out a brief questionnaire to determine if your products can be included in this event. Due date for completion of the questionnaire is April 9, 2008. All product submissions will be reviewed, but unfortunately not all vendors will be invited. Vendors who are selected to attend the event held in Atlanta, GA on July 15-16, 2008 will be notified by email on or before May 19, 2008 and scheduled for a 20-minute face-to-face meeting with a merchant.
The application form is here.

Home Depot Adds to Board
2.29.08      The Home Depot has announced the appointment of Albert (Al) P. Carey, 56, to the Company's board of directors. Mr. Carey will be a member of both the Audit and Infrastructure Committees.
Mr. Carey is the President and Chief Executive Officer of PepsiCo's Frito- Lay North America division, a $12 billion snack and convenient foods business. Prior to this, Mr. Carey was President of PepsiCo Sales, responsible for PepsiCo's sales and customer management for retail, foodservice and fountain businesses. A 27-year veteran of PepsiCo, he has held other leadership positions within the organization including Chief Operating Officer for PepsiCo Beverages & Foods, Chief Operating Officer for Frito-Lay North America and Senior Vice President of Sales for Pepsi-Cola North America.
With this announcement, The Home Depot's board currently consists of 15 members, with 14 of them being outside directors.
The full press release is here.

Home Depot 2007 Sales –2%, Earnings Down 28% in 4Q
2.26.08        Home Depot on Tuesday morning reported net earnings for the fourth quarter declined 28 percent to $671 million from $925 million in the year-ago quarter. For the fiscal year, earnings fell 24 percent to $4.4 billion from $5.8 billion in 2006.
    Sales for the fourth quarter increased 1.5 percent to $17.7 billion. For the year, sales declined 2.1 percent to $77.3 billion from $79.0 billion. Same-store sales for the year fell 6.7 percent.
    For 2008, the retailer forecasts a sales decline of 4 to 5 percent.
    The full financial report is here.

Home Depot Will Report 2/26/08
2.12.08        Home Depot announced today that it will hold its fourth quarter and fiscal 2007 earnings conference call on Tuesday, February 26, 2008, at 9 a.m. ET.
A webcast will be available by logging onto www.homedepot.com and selecting the Fourth Quarter & Fiscal 2007 Earnings Conference Call icon. The link will be displayed on the home page as well as under the investor relations section. The webcast will be archived and available beginning at approximately noon on February 26.

Home Depot Sells Landscape Supply Stores
2.6.08      Ram Realty Services, a Florida real estate development and acquisitions company, has reportedly purchased Home Depot’s 11 Landscape Supply stores for $22 million.
    Home Depot had previously announced plans to close the stores as part of its strategy to focus on its core retail business.

Home Depot and Lowe’s Stock On the Rise
1.31.08        A trend that bears watching, not only for investors, but for those interested in what Wall Street thinks about the future of the home improvement retail industry, is the recent rise in value of stock in both Home Depot and Lowe’s.
    Both stocks took major hits last year, ending 2007 minus 33 and 27 percent, respectively. They began this year in much the same vein, falling another 5 to 10 percent in just the first two weeks. Since then, however, they have recovered and as of yesterday’s market close were up in value around 10 percent for the year.

Home Depot Drops Plan to Buy Utah Bank
1.25.08        Home Depot has withdrawn its application with the FDIC to purchase EnerBank USA, an Industrial Loan Corporation, from CMS Energy Corp.
    The retailer had announced in May 2006 that it would acquire the bank to facilitate home improvement loan processing. Since then, Congress has expressed bipartisan opposition to the practice of retailers owning banks.

Home Depot Names Michaels CEO to Board
1.21.08      Home Depot has announced the appointment of Brian C. Cornell to its board of directors. Mr. Cornell is the chief executive officer of Michaels Stores, Inc.

Home Depot Sponsors the NFL Experience: Pro Football's Interactive Theme Park
    “The National Football League will once again partner with The Home Depot to bring pro football's interactive theme park spanning nearly 850,000 square feet and featuring more than 50 interactive games and attractions to Arizona. Super Bowl XLII marks The Home Depot's second year as the presenting sponsor of The NFL Experience,” according to a press release.
The NFL Experience Built By The Home Depot takes place Jan. 26-27, 31 and Feb. 1-2, 2008, adjacent to the University of Phoenix Stadium, in Glendale, Ariz. Sunday, Feb. 3 is open to Super Bowl XLII ticket holders only.

Home Depot Lobbying to Operate Banks in Stores
1.7.08        Home Depot has hired the Alpine Group to lobby the Federal government on its behalf regarding laws relating to Industrial Loan Corporations (ILCs).
    ILCs are limited bank operations with the authority to issue credit cards, make loans and accept deposits from customers. Home Depot wants to establish the banks in its retail stores.
    The House of Representatives approved in May a bill that would prohibit the Federal Deposit Insurance Corp. from granting new ILC charters to commercial companies. The Senate is considering companion legislation.
    The lobbying form filed with the government, required by law, can be seen here.

Home Depot Board Member Resigns
12.18.07        Lawrence R. Johnston, former chairman and chief executive of Albertson's Inc., has resigned from the Board of Directors of Home Depot.
Johnston, a member of the board since 2004, resigned because of increasing demands on his time, Home Depot said in a Securities and Exchange Commission filing. The company also said that Johnston "did not cite any disagreement on any matter relating to the company's operations, policies or practices."
    Home Depot SEC filings are here.

Home Depot Canada Intros “Project Store” Format
12.11.07        The Home Depot Canada is opening its first project-orientated store on December 13 in Richmond Hill, Ontario. The new 115,000-square-foot store has been “redesigned both functionally and aesthetically based on customer demand,” according to the company.
The project store features a new layout that “creates a more project-oriented shopping flow; redesigned departments for greater access to project information and expertise; inspirational showrooms; project-oriented customer service; a new seminar area; online terminals for homedepot.ca product orders; more than 40,000 products; a Tool Rental Centre, Installation Services and an 18,000 square-foot Garden Centre.”
    The full press release is here.

Home Depot Closing Three Customer Service Call Centers
12.5.07      Home Depot has confirmed it is closing three customer service support centers, eliminating 950 jobs. The centers are in Chicago, Dallas and Tampa. Following the closings, the retailer will still operate eight call centers throughout the country.
    The call centers provide follow-up services to customers who order home installation products from Home Depot stores.

Home Depot to Pay $1.3M Fine to EPA for Pollution Charge
11.29.07      Home Depot Inc. disclosed yesterday in its quarterly SEC filing that it has agreed to pay $1.3 million in civil penalties in connection with a 2003 information request from the Environmental Protection Agency into alleged discharges of pollutants at certain store construction sites.
    The company’s 10-Q filing is here.

Sears’ Lampert Buys Stake in Home Depot
11.16.07        RBS Partners LP, a fund controlled by billionaire investor Edward Lampert, chairman of Sears Holdings Corp., has reported acquiring 16.7 million shares ($541.3 million) of Home Depot shares during the third quarter, according to a filing with the Securities and Exchange Commission this week.

Home Depot Names Three New Members to Its Board
11.16.07        Home Depot yesterday announced the appointments of F. Duane Ackerman, 65, Ari Bousbib, 46, and Karen Katen, 59, to the Company's board of directors.
These appointments are a part of the Company's planned succession process to replace four existing board members, John L. Clendenin, 73, Claudio X. Gonzales, 73, Milledge A. Hart III, 73, and Kenneth G. Langone, 72, who are scheduled to retire from the board in May 2008.
Also, the Company announced that Helen Johnson-Leipold, 50, has resigned from the board due to additional demands on her time.
F. Duane Ackerman is the retired chairman and chief executive officer of the BellSouth Corporation. Ari Bousbib is the president of Otis Elevator Company. Karen Katen currently serves as chairman of the Pfizer Foundation, and recently retired as vice chairman of Pfizer Inc. and as president of Pfizer Human Health.
The full press release is here:

Home Depot Profits Down 27%
11.13.07      Home Depot on Tuesday morning reported net earnings for the third fiscal quarter declined 26.8 percent to $1.091 billion from $1.490 billion in the year-ago period. Net sales for the quarter fell 3.5 percent to $18.961 billion from last year’s $19.648 billion.
    For the first nine months of the fiscal year, net earnings are down 23 percent to $3.724 billion from $4.836 billion in the year-ago period. Net sales are down 3.1 percent to $59.690 billion from $61.618 billion.
    “We are facing a tough environment as housing indicators continue to deteriorate. Our financial performance in the third quarter reflects these tough conditions,” said Frank Blake, chairman and CEO.
    The company said that, “given the softness in the housing market,” it now expects earnings per share for all of fiscal 2007 to decline by as much as 11 percent from last year.
    The full financial report is here.

Home Depot to Host 3Q Earnings Call on November 13
10.31.07      Home Depot announced today that it will hold its Third Quarter Earnings Conference Call on Tuesday, November 13, 2007, at 9 a.m. ET.
A webcast will be available by logging onto www.homedepot.com and selecting the Third Quarter Earnings Conference Call icon. The link will be displayed on the home page as well as under the Investor Relations section. The webcast will be archived and available beginning at approximately noon on November 13.

Home Depot Recognizes Top 10 Product Innovations of the Year
10.23.07      Home Depot today announced that American Standard won the retailer's 2007 Innovation Award for its Speed Connect(TM) drain system. The annual award recognizes the most revolutionary new products that provide true benefits to consumers and the companies that exceeded expectations in sales, service and program execution.
    The news release on the top ten is here.

Home Depot Chief Marketing Officer Resigns
10.18.07      Home Depot yesterday announced that Roger Adams, chief marketing officer, has resigned his position to pursue other opportunities.
    John Ross, vice president of advertising, will take on the additional responsibilities of interim chief marketing officer.

Home Depot Testing New “Design Centers”
10.04.07      According to a report in the Atlanta Journal-Constitution, Home Depot will begin testing a new “Home Depot Design Center” concept later this month in Concord, California and Charlotte, North Carolina.
    The stores will be about the same size as a typical Home Depot, but will not have a lumber and building materials department or a power tool department. Instead, space will be given over to studio-style presentations of upscale furniture and other interior home design products, according to the report.
    The Atlanta Journal-Constitution article is here.

Home Depot Report Available
10.03.07        Research and Markets has announced the addition of "Home Depot - SWOT Framework Analysis” to their report offerings.
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objectives of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.
More information available here.

Home Depot Closing Landscape Supply Stores
9.21.07      Home Depot will close its 11 Landscape Supply stores within the next two months, according to a company spokesman quoted in various reports published online and in some newspapers.
    While the company has not issued a formal statement on its plans for the stores, the move is thought to be in keeping with the retailer’s refocusing on its core business.

Home Depot Exec Sells Shares
9.19.07        In a Form 4 filed with the Securities and Exchange Commission on Monday, Annette Verschuren reported exercising options for 34,695 shares of the company’s stock at $21.29 each. Verschuren, Division President – Canada and Asia, sold the shares the same day for between $35.61 and $35.66 each, according to the filing.
    The SEC document is here.

Home Depot and the NFL Announce Charity Program
9.12.07        Home Depot today announced The Home Depot NFL Neighborhood MVP, a national program that recognizes players who are making a positive impact in their local communities through charitable programs and contributions.
The program will reward 17 players, one for each week of the regular season, with a football field refurbishment or a playground build in their local market and a donation to the charity of their choice.
At the end of the year, one player will be honored as The Home Depot NFL Neighborhood MVP of the Year and will receive a $25,000 donation to the charity of his choice.
The full press release is here.

Home Depot Upwardly Revises 2007 EPS Forecast
9.10.07      Following the completion of its “Dutch Auction” stock buyback offer, Home Depot today announced a revised earnings per share forecast for fiscal 2007.
Prior to the tender offer, the Company's guidance for fiscal 2007 diluted earnings per share from continuing operations was a decline of 12-15 percent from fiscal 2006. Having completed the tender offer, the Company's updated guidance for diluted earnings per share from continuing operations is a decline of 7-9 percent for fiscal 2007. For the purpose of computing diluted earnings per share, the Company projects that outstanding shares will be reduced by approximately 165 million and 290 million shares in the third and fourth quarters of fiscal 2007, respectively.
    The full press release from the retailer is here.

Home Depot COO Resigns,
Will Join HD Supply

9.4.07        Joe DeAngelo, Chief Operating Officer of Home Depot, has resigned his position in conjunction with the retailer’s sale last week of its HD Supply division.
    DeAngelo, who had responsibility for the division, will assume the position of President and CEO of the new HD Supply.
    For more information on HD Supply, go here.

Home Depot Buying Back 289.6 Million Shares
9.4.07      Home Depot announced this morning that as a result of its modified “Dutch Auction” tender offer, it will buy back approximately 289.6 million shares at a price of $37.00 per share for a total cost of approximately $10.7 billion. The shares to be purchased represent approximately 14.6 percent of the shares outstanding on August 31, 2007.
    The full press release is here.

Home Depot to Provide Update at Retailing Conference
8.29.07      Home Depot Chairman and CEO Frank Blake and Craig Menear, EVP of Merchandising, will present at the Goldman Sachs Global Retailing Conference in New York at 8:45 a.m. ET on September 5, 2007.
    The presentation will be webcast live at www.homedepot.com. On the home page, select “investor relations” and then “events and presentations.”

HD Supply is Sold
8.28.07        Home Depot announced today that it has amended the purchase and sale agreement for HD Supply to an acquisition corporation formed by affiliates of Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice ("the private equity consortium"). The terms of the purchase and sale agreement were amended as follows:
1. Purchase price of $8.5 billion.
2. The Home Depot to purchase a 12.5% equity interest for $325 million.
3. The Home Depot to guarantee a $1 billion senior secured loan of HD Supply.
"Despite the softness in the financing and residential construction markets, the terms of the HD Supply sale deliver shareholder value today and in the future as we will share in HD Supply's upside potential. We are now focused on our retail business," said Frank Blake, chairman & CEO of The Home Depot.
    The full press release is here.

Home Depot Agrees to Lowered Sale Price for HD Supply
8.27.07      Home Depot over the weekend worked out an agreement with a group of private equity firms to sell its HD Supply unit for approximately $8.5 billion, $1.8 billion less than the original $10.3 billion price tag, according to reports. According to the reports, carried in The Wall Street Journal and elsewhere, Home Depot will retain a 12.5 percent interest in HD Supply under terms of the new agreement.
    The deal had been in jeopardy as turmoil in the finance market and a slowdown in housing made it more difficult for the buyers to obtain financing.
    Home Depot has not released details of the transaction, but when it does, they will be here.

Home Depot Hit With $10M Environmental Charge
8.23.07      Home Depot has agreed to pay $9.9 million to settle charges that it failed to properly store and transport hazardous waste, according to reports.
The civil case was filed by the California Attorney General and district attorneys from Los Angeles, Monterey, Riverside, San Joaquin and Santa Clara counties.
    A press release on the matter is here.

Home Depot Names New Board Member, Declares Dividend
8.17.07        Home Depot has named Armando Codina to its Board of Directors. Mr. Codina, 60, is President and CEO of Flagler Development Group, a commercial real estate firm in Florida.
    His appointment brings the Board total to 12 members, 11 of which are outside directors.
    The Board also has declared a 22.5 cents per share dividend for the second quarter.
    The full press release is here:

HD Supply Sale Closing Date Extended
8.16.07      The expected closing date for the $10.3 billion sale of HD Supply to a group of private equity firms had been today, August 16, but the closing has been extended until August 23, 2007.
    In an SEC filing, Home Depot wrote, “no assurance can be given that any agreement will be reached concerning a restructuring of the proposed transaction, nor that the transaction will close.”
    It is expected by most analysts that the $10.3 billion sale price will be reduced in consideration of current credit market developments.
    The SEC filing is here.

Home Depot Second Quarter Profits Down 14.8%
8.14.07        Home Depot this morning reported fiscal second quarter net earnings of $1.6 billion, down 14.8 percent from $1.9 billion in the year-ago period.
    Earnings from continuing operations in the quarter were $1.5 billion, compared with $1.7 billion last year. The company is now reflecting the results of HD Supply as a discontinued operation.
    Sales for the period fell 1.8 percent to $22.2 billion from last year’s $22.6 billion. Same-store sales in the quarter declined 5.2 percent.
    For the first half, earnings are down 21.3 percent to $2.63 billion from $3.35 billion last year and revenue is down 3 percent to $40.73 billion from $41.97 billion in the year-ago period.
    The full report from the company is here.

Home Depot Restructuring HD Supply Sale
8.9.07      Home Depot announced today that it is in discussions with affiliates of Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice for the purpose of restructuring the previously announced agreement for the sale of HD Supply.
These discussions could result, among other things, in material changes to the terms and financing of the transaction, including a reduction in the $10.325 billion purchase price.
The press release on the matter is here.

Nardelli Named Chairman and CEO of Chrysler

8.6.07      Chrysler LLC Last night announced that its Board of Directors has appointed Bob Nardelli, former Home Depot Chairman and CEO, as Chairman and CEO of Chrysler LLC. The Board also announced that Tom LaSorda, who had been Chairman, has been appointed Vice Chairman and President, reporting to Nardelli.
"We are excited to welcome Bob to the Chrysler family," said LaSorda. "Bob has a proven track record of success and an unwavering focus on performance, and brings deep operational experience and a broad industry background to Chrysler. His background in operations will provide valuable knowledge as we continue Chrysler's turnaround."
"I am very excited to be part of a team focused on re-establishing Chrysler as a standalone industry leader, with a renewed focus on meeting the needs of customers," said Nardelli.

Home Depot Fires Four Purchasing Managers
8.1.07      Home Depot, according to reports in the Atlanta Journal-Constitution and other media outlets, has fired four purchasing managers for allegedly taking large payments from flooring vendors in exchange for shelf space in the retailer’s stores.
    The Atlanta Journal-Constitution article is here.

Depot Secures $10B Credit
7.16.07      Home Depot has obtained a new $10 billion credit facility from Lehman Brothers and Merrill Lynch. In an SEC filing, the retailer said the funds will be used in connection with its plan to repurchase up to 250 million shares.

Home Depot Makes Tender Offer for 250 M Shares, Updates 2007 Sales and Earnings
7.10.07        The Home Depot today announced the launch of a tender offer for 250 million shares of its common stock at a price range of $39.00 to $44.00 per share.
    The company also updated its 2007 financial targets to reflect HD Supply as a discontinued operation. In May, the company said that it expected earnings per share to be down 9% for the year. This guidance included an estimated eighteen cents of earnings per share contribution from HD Supply for the last six months of fiscal 2007. Had the company excluded the HD Supply earnings contribution at that time, its earnings per share guidance would have been a decline of 15% for fiscal 2007. Given the announced sale of HD Supply and based on weaker conditions in the housing market, the company said that it now expects its earnings per share to decline by 15-18% for fiscal 2007, with total retail sales down 1-2% and comparable store sales down mid-single digit. The company also stated that it would open approximately 108 new stores in fiscal 2007. Finally, the company expects its operating margin to contract by 120-150 basis points due to negative same store sales and its continued investment in its core retail operations.
    "While we expect the housing market to remain challenging for the rest of 2007 and into 2008, we plan to continue our reinvestment plans for the long-term health of our business, understanding that it will put short-term pressure on earnings," said Carol Tome, CFO and executive vice president - corporate services. "We are confident that over the long term, we will deliver productivity improvements and enhance returns on invested capital as the investments take hold."
    The company will present a discussion of the two moves online today at http://www.homedepot.com/ in the Investor Relations section. The webcast will be archived and available at the same location.

Home Depot to Update Sales and Earnings Forecast
7.2.07        Home Depot will hold a retail update on July 10 from 9 a.m. - 10:30 a.m. The company will update its fiscal 2007 sales and earnings per share guidance to reflect the impact of the recently announced sale of HD Supply.
The meeting will be webcast live at www.homedepot.com in the Investor Relations section. The webcast will be archived and available at the same location.

Home Depot Moving Toward Central Distribution System
6.27.07      Today, approximately 40 percent of products sold at Home Depot stores flow through a central distribution network, with the remainder shipped direct-to-store by vendors. The retailer wants to change that to have 80 percent of product moving through its own central distribution system, according to Mark Holifield, senior vice president for supply chain.
    Hollifield, speaking yesterday at the Wachovia Securities Conference in Nantucket, said “we have to radically increase the amount of central distribution at The Home Depot.” The objective, he said, is to improve in-stock positions at stores, increase inventory turnover and lower distribution costs.
    The presentation by Holifield is available at http://www.homedepot.com/ under “investor relations/events.”

Home Depot Foundation Holds “Green” Meeting in SF
6.26.07      The Home Depot Foundation is meeting in San Francisco today with Bay Area leaders in housing, green building and city officials “to discuss the green movement in the affordable housing sector.” Discussions, according to a press release, will “focus on meeting demands for affordable housing in economically and environmentally sustainable ways.”

Home Depot Sells Supply Unit for $10.3B, Announces $22.5B Share Repurchase Plan
6.20.07      Home Depot yesterday announced it has agreed to sell its HD Supply unit for $10.3 billion to private equity firms Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice. The transaction is expected to close in the third fiscal quarter of 2007.
    The company also yesterday authorized a $22.5 billion increase in its share repurchase program. The repurchase will be funded with the net proceeds from the sale of HD Supply, existing cash on hand and an anticipated $12 billion issuance of senior unsecured notes.
    “Today’s decision reflects our continued commitment to enhancing shareholder value, through an exclusive focus on our retail business and the return of cash to our shareholders,” said Frank Blake, chairman and CEO.
    The press release from the company is here.

Home Depot to Present
6.19.07        Home Depot Senior Vice President, Supply Chain Mark Holifield will present at the Wachovia Securities Nantucket Equity Conference on June 26, 2007 at 1:30 p.m. ET. The presentation will be webcast live at http://www.homedepot.com/ under “investor relations/events” and will be archived there for future viewing.

Groups Bidding for HD Supply
6.18.07      According to reports last Friday, Home Depot has received two separate bids for its HD Supply unit. Originally reported by Bloomberg news, and repeated by various news services, the scenario has two private equity groups both offering about $10 billion for the business.
    Home Depot has not as yet issued a statement on the situation, but did say back in February that it was considering a sale or spinoff of the unit as part of a strategy to refocus on its core retail business.

New Market Research Report on Home Depot Available
5.31.07      “Home Depot – Marketing Strategy Analysis” has been added to the offerings of market research firm Research and Markets. The company says that they “conduct marketing strategy analysis of organizations to support sales managers in formulating and implementing successful marketing strategies in their business markets.”
    Cost of the report is EUR 321 ($431) in electronic form and EUR 428 ($575) in hard copy.
    More information and ordering info is here.

Home Depot Canada Exec Receives Toronto Award
5.30.07      The Toronto Chapter of the International Association of Business Communicators honored Annette Verschuren, Division President of The Home Depot/Canada, yesterday morning as the 2007 CNW Group Communicator of the Year during a breakfast celebration held at the Toronto Board of Trade.
    The award is presented by Canada News Wire annually to “senior level strategist who use communications to obtain successful organizational results,” according to a press release. “She has taken an active leadership role in the development of the organization’s communications strategies, and understands how much value it adds to The Home Depot’s overall strategic business objectives,” according to the release.

Retailers Offer Military Discounts for Memorial Day
5.23.07      Both Home Depot and Lowe’s are offering 10 percent discounts to current and former military personnel and their families to mark the Memorial Day weekend.
    Both programs are limited to purchases of up to $2,000 for a $200 discount. Home Depot’s sale runs May 24 through May 28 while Lowe’s is May 26 through May 31.

Bill Barring “Retail Banks” Clears House
5.22.07        A bill barring retailers and other non-financial companies from establishing Industrial Loan Corporations cleared the House of Representatives Monday by a vote of 371 to 16.
Home Depot has plans pending to establish such a bank through an acquisition.

Home Depot Exec Leaving
5.18.07      Jim Stoddart, senior vice president of growth initiatives, is leaving Home Depot effective May 18, according to a report in the Atlanta Journal-Constitution.
    Stoddart came to Depot in 2002 to help then-CEO Bob Nardelli with plans to develop businesses outside the traditional retail stores. Since Nardelli resigned in January of this year, many of his top lieutenants have exited the company. Frank Blake’s new approach is to focus on the core business.
    The AJC article is here.

Home Depot First Quarter Profits Fall 30%
5.15.07      Home Depot this morning reported that net earnings for the first fiscal quarter fell 29.5 percent to $1.046 billion from $1.484 billion in the year ago period. Total sales for the period increased 0.6 percent to $21.6 billion from last year’s $21.5 billion.
    Total sales in the retail segment declined 4.3 percent to $18.5 billion from $19.4 billion as same-store sales declined 7.6 percent. Total sales in the HD Supply segment increased 46 percent to $3.1 billion from $2.1 billion in the year-ago period.
    “The housing market continues to be a challenge, and erratic weather conditions across the United States negatively affected our spring selling season,” said Frank Blake, chairman and CEO. “We believe the home improvement market will remain soft throughout 2007,” Blake said. “We plan to continue our reinvestment plans for the long-term health of the business, understanding that it will put short-term pressure on earnings.”
    During the quarter, the number of customer transactions declined 1.2 percent to 318 million from 322 million. The average ticket fell 2.9 percent to $59.01 from $60.75. The average weekly sales per store fell 9.6 percent to $665,000 from $736,000.
    In its quarterly report, the company said the review of strategic alternatives for the HD Supply business, including a possible sale, is ongoing.
    The full quarterly report is available here.

Home Depot Extends Plan to Buy ILC Bank
5.8.07        Home Depot has extended its offer to purchase EnerBank USA, an industrial loan corporation (ILC), in hopes of eventually being able to offer home improvement loans through its own bank in its retail stores.
Home Depot had originally agreed to purchase EnerBank from CMS by April 30, 2007.   Last week the home improvement retailer and CMS agreed to push that date back to April 30, 2008, three months beyond the sunset of a Federal Deposit Insurance Corp. moratorium that has frozen all such retailer-owned banking deals.

Home Depot Promotes Menear and Raines to Top Posts
5.2.07        Home Depot yesterday announced the promotion of Craig A. Menear to executive vice president of merchandising and Paul Raines to executive vice president of U.S. stores.
    Menear previously had been senior vice president of merchandising. He succeeds Tom Taylor, who left the company last fall. Raines had been president of the company’s Southern Division. He succeeds Carl Liebert, who resigned in October.
    Also, the company announced the resignation of Jose Lopez, chief customer officer and senior vice president. Sue Park, former vice president of the Northern Plains Division, has been named vice president of customer service to replace Lopez.

Home Depot Holding “Open to Buy” Day on June 28
4.28.07        Home Depot will hold an Open to Buy day in Atlanta on June 28, 2007. The event will provide an opportunity for selected non-incumbent vendors to meet face to face with a merchant who can review their products for possible purchase by Home Depot.
    The due date to apply for participation is May 17, 2007. Interested vendors can apply online at: https://otb.thdsourcing.com/otb/.

Home Depot Paid Nardelli $134.5 Million in 2006

4.18.07        Bob Nardelli, the former CEO of Home Depot who resigned in January, was paid approximately $134.5 million in 2006, according to a filing last week with the Securities and Exchange Commission.
    Compensation included $2.3 million in salary, a $3 million bonus, $3 million of non-equity incentive pay, $100.2 million in other compensation and $25 million in stock option awards.
    Nardelli’s severance package, announced in January, will provide him another $210 million.
    Frank Blake, who replaced Nardelli as CEO, can earn a total of $8.9 million this year, with 90 percent of that tied to company performance.

Home Depot Intros Eco Options
4.17.07        Home Depot today announced a program to classify more than 2,500 products as “Eco Options” in its stores.
    The classification system “allows customers to easily identify products that have less of an impact on the environment and empowers them to help make a difference in their own homes,” the retailer said in a press release.
    Products include all-natural insect repellents, cellulose insulation, front-load washing machines, organic plant food, compact fluorescent light (CFL) bulbs, programmable thermostats and certified wood.
    As part of the launch, the company will give away 1 million CFL bulbs on Earth Day, April 22.

Nardelli Headed to Hedge Fund Firm?
4.2.07      Cerberus Capital Management, a hedge fund investment company, is reported to have offered a job to Bob Nardelli, the former CEO of Home Depot who left in January amidst controversy over his compensation and other shareholder dissatisfaction.
    According to a report on CNBC, Home Depot is not happy with the possible move and may challenge it under terms of a non-compete clause in Nardelli’s $210 million separation package.

Home Depot Store Growth Slowed in 2006
3.30.07      In a filing with the Securities and Exchange Commission yesterday, Home Depot reported it opened 86 new stores in the United States during fiscal 2006, down from 140 in 2005.
    Also, the retailer opened 20 stores in Canada and 7 in Mexico, down from 21 and 10, respectively.
    The trend is expected to continue this year as the company focuses money and resources on refurbishing existing stores and improving customer service in an attempt to regain market share from Lowe’s.

Home Depot to Test New Formats – One Big, One Small
3.26.07      Home Depot plans to test two new store formats, a 225,000-square-foot supersized concept, and a scaled-down 35,000 to 50,000-square-foot “hardware store” version, according to reports in the Atlanta Journal-Constitution.
    The large format store is scheduled to open in Union, NJ, on the site of a former Expo Design Center, in April or May of next year.
    The smaller stores will open in the San Francisco area where former Yardbird stores (acquired by Depot in 2005) are currently being converted as prototypes for the new format, which could be rolled out elsewhere.
    The small store format is something Depot has tried before, with the Villager’s Hardware stores, a project that was largely abandoned in 2001.
    Read the AJC article here.

Home Depot Focusing on Stores, Undecided on Supply Business
3.23.07      New Home Depot CEO Frank Blake, speaking at a retailing conference in New York yesterday, said the company “has not decided one way or another what to do with the supply business.”
    The company had announced in early February that it was “seeking alternatives” for the newly created distribution business, a venture largely championed by former CEO Bob Nardelli, who left the retailer in January.
    Blake said yesterday that a major focus for the company is improving the shopping experience at its more than 2000 stores.
    One aspect of improving the stores is a program to hire “master trade specialists” to work in the stores. These knowledgeable new store associates will be paid up to $30 an hour, according to the company.

Ridge Leaving Depot Board
3.21.07      Tom Ridge, former two-term Pennsylvania governor and Secretary of the Department of Homeland Security, has informed Home Depot he will not seek re-election to the Board at the next annual meeting in May. Angelo Mozilo, CEO of Countrywide Financial, also will not seek re-election.
    The company said neither of the two cited disagreements with corporate operations, policies or practices as the reason for resigning.

Wal-Mart Drops Bank Plans, Home Depot Does Not
3.19.07      Wal-Mart Stores last week announced it has withdrawn its application with the Federal Deposit Insurance Corp. to establish an Industrial Loan Company, or ILC bank.
    Home Depot, which also has an application pending with the FDIC to acquire EnerBank USA, an existing ILC bank, says it will move forward with its plans.
    “Any decision by Wal-Mart concerning its application for a new ILC in no way affects Home Depot’s plans concerning EnerBank,” said Anthony Wilbert, a company spokesman.

CEOs of Home Depot and Lowe’s to Present Next Week
3.16.07      Frank Blake, chairman and CEO of Home Depot, and Larry Stone, president and COO of Lowe’s, are both scheduled to give presentations at the Merrill Lynch Retailing Leaders Conference in New York next week. Stone’s presentation is scheduled for 8:00 a.m. Wednesday, March 21, and Blake is scheduled for 12:45 p.m. Thursday, March 22.
    Both presentations will be webcast live on the retailers’ respective websites and will be archived there for future viewing (click on “investor relations”).

Home Depot CEO Responds to Unhappy Customers on MSN Message Board
3.14.07      Home Depot’s new CEO, Frank Blake, this week took an unusual step to answer critics of the retailer who say service at the company’s stores has gone downhill – he agreed with them and vowed to oversee a change. And he posted his message on the Internet at msn.com.
    Last week, MSN Money ran a column by Scott Burns focusing on the customer service problem at Depot. That column generated thousand of e-mails and posts on the sites message board. Most of the posts told tales of bad shopping experiences.
    Blake wrote in his post “we let you down … that’s unacceptable.” He went on to list steps being taken to correct the situation.
    Read the full copy of Blake’s post here.

Home Depot CEO Blake Granted 222,816 Stock Options
3.6.07      Frank Blake, Chairman and CEO of Home Depot, has been granted 222,816 stock options, according to a filing with the Securities and Exchange Commission.
    The options will vest when the closing stock price has been 25 percent greater than the exercise price for 30 consecutive trading days, but not within one year of the grant date. The exercise price for the options was not disclosed.

HD Supply Unit Sale Seen as Very Likely
3.2.07        Following Home Depot’s recent analyst and investor conference, speculation is rising that the company’s HD Supply unit will be sold. During the conference, new Chairman and CEO Frank Blake emphasized that the company wants to “return to basics” and concentrate on its retail operations.
A report in the Financial Times this week claims three teams of private equity firms have formed to consider bids of up to $11 billion for the wholesale supply business:
“According to people familiar with the matter, Bain Capital has joined forces with Carlyle and Clayton Dubilier & Rice, while Thomas H Lee Partners is partnering with Goldman Sachs buy-out unit and CCMP, the former private equity arm of JPMorgan Chase. A third team of investors includes Blackstone, Kohlberg Kravis Roberts, Leonard Green Partners and Texas Pacific Group,” said the paper.

Home Depot Presents New Priorities and Outlook for 2007
2.28.07      Home Depot said today it expects slow sales growth and lower earnings for 2007, but that it is taking steps to invest heavily in the future.
    Chairman and CEO Frank Blake, speaking at the company’s annual investor and analyst conference, said the company does not expect the residential construction and housing market to improve until late in 2007 or early 2008.
    “We are first and foremost a retail business, and our 2007 plans reflect that commitment,” said Blake. “While the current home improvement market remains challenging, the long-term fundamentals of our company are strong, and we believe we can improve our performance and grow at, or faster than, the market beyond 2007.”
    The company outlined five key priorities for 2007 and said it plans to spend $2.2 billion during the year to implement changes. The five areas are: store associates, product innovation, product availability, the shopping environment and the professional customer.
    For 2007, the company predicts total sales growth of from 0 to 2 percent with same-store sales in the minus mid single-digit range. Per share earnings are forecasted to decline by 4 percent to 9 percent.
    Beyond 2007, the company sees sales and earnings growth of approximately 5 percent per year.
    The full text of the company’s press release is here.

Home Depot Fourth Quarter Profits Fall 28% to $925M
2.20.07      Home Depot announced this morning that fourth fiscal quarter net earnings declined 28 percent to $925 million, compared with $1.3 billion in the year-ago period. Per share income fell to $0.46 from last year’s $0.60, including a $0.04 per share expense related to executive severance.
    Sales in the fourth quarter increased 4 percent to $20.3 billion from $19.5 billion in fiscal 2005. Total sales in the retail segment declined 2 percent to $17.4 billion as same-store sales dropped 6.6 percent. The HD Supply segment grew by 64.4 percent to $2.9 billion, reflecting sales from the Hughes Supply acquisition.
    For the full fiscal year, net earnings declined 1.3 percent to $5.761 billion from last year’s $5.838 billion.
    Net sales for the year increased 11.4 percent to $90.8 billion from $81.5 billion. Same-store sales for the year fell by 2.8 percent.
    "Reflecting the challenging housing market, our 2006 retail results were disappointing," said Frank Blake, chairman & CEO. "We may not be able to impact the housing market or general economic conditions, but we know that we can improve our performance relative to our overall market share. That will be a central point of emphasis for us in 2007 and beyond."
    The full news release and financial statement can be seen here.

Home Depot Closing Floor Stores
2.15.07      Home Depot has notified the 550 employees at its flooring call center in Addison, Texas that it would close the center on March 12. The retailer is also closing its two Floor Store retail operations, one in Plano, Texas and one in Margate, Florida.
    The company said it has decided to have flooring associates in stores resume coordination of flooring installations.
    The move is seen as consistent with the company’s announced push to return focus to its traditional retail store operations. Last week the company said it is exploring strategic alternatives for its HD Supply wholesale business.

Home Depot Names President of China Operations
2.13.07      Home Depot yesterday named Yves Chen as president of its retail operations in China. He will report to Annette Verschuren, president, The Home Depot Asia and Canada.
    Chen most recently was president of the Beijing Hualian Group, a leading Chinese retailer. Prior to that, he held a number of executive positions in China and France with Carrefour and Promodes, two leading French retailers.
    Home Depot acquired Home Way in December 2006 and operates 12 stores in China.

Home Depot Evaluating HD Supply Business for Sale, Spin-Off or IPO
2.12.07        Home Depot today announced that the company and its board of directors have decided to evaluate strategic alternatives for its HD Supply business, including a possible sale, spin-off or initial public offering of the business. The company said there can be no assurance that any transaction will occur or, if one is undertaken, its terms or timing.
"Today's announcement is a continuation of the strategic review we did in November," said Frank Blake, chairman and CEO of The Home Depot. "We are undertaking this action today because of our desire to increase our focus on our retail business. With annual revenues of approximately $12 billion, HD Supply is a healthy, growing and vibrant business, and we are undertaking this evaluation to determine whether there are strategic alternatives with respect to HD Supply that would optimize shareholder value."

Home Depot Gives Activist Group a Seat on its Board
2.6.02    Home Depot announced last night that it is giving a seat on its Board of Directors to the activist investor group, Relational Investors LLC.
    Relational had been threatening a proxy fight over the company’s strategic direction, writing back on December 13 that it saw “an opportunity for substantial appreciation in stock value through changes in the company’s strategic direction, restructuring and recapitalization, a partial or complete sale or buyout of the company and/or a major recomposition of the executive team.”
    Under the agreement reached last night, David H. Batchelder, a founder of Relational Investors, will join the Home Depot Board effective February 22, and Relational will cease the proxy challenge. Batchelder also will serve on the company’s leadership development and compensation committee and on the audit committee.
    Relational owns about 26.5 million shares of Home Depot, or about 1 percent of outstanding common shares. Its vocal activism in criticizing the company was one of the factors leading to the recent resignation of Bob Nardelli, former chairman, president and CEO of Home Depot.
    “We have been actively listening to our shareholders and look forward to continuing the dialogue,” said Frank Blake, Home Depot chairman and CEO.
    The full Home Depot press release on the matter is here.

Home Depot’s Heads of Legal and HR Resign
2.2.07      Home Depot announced yesterday that Frank Fernandez, general counsel, and Dennis Donovan, EVP of human resources, have resigned effective February 14.
    The moves are seen as part of a larger change in upper management following the departure last month of CEO Bob Nardelli.
    Both Fernandez and Donovan will receive $2.96 million in cash severance plus approximately $17 million in accrued stock value.
    Jim Snyder, vice president of litigation and risk management, has been named interim general counsel and Tim Crow, senior VP of human resources, has been named to replace Donovan as head of human resources.

Home Depot’s New CEO Can Earn up to $8.9 Million
1.25.07     Frank Blake, recently named to replace Bob Nardelli as CEO of Home Depot, could earn up to $8.9 million in total compensation in 2007, according to an SEC filing made public yesterday.
    The pay package, while high by any standard, is much less than the average compensation of around $26 million per year paid to Nardelli.
    Blake’s base salary for 2007 is set at $975,000. He is also eligible for performance-based incentive bonuses of double his salary and a long-term incentive award equal to his base salary. Up to $5 million in stock awards may also be granted based on share price performance and total shareholder return.
    While Nardelli left the company with a separation package worth over $210 million, Blake’s contract does not provide for payment of severance upon termination.

Judge Denies Request to Block Nardelli’s Severance
1.23..07

A Superior Court judge in Atlanta yesterday denied a petition by a Home Depot shareholders group to temporarily block paying former CEO Bob Nardelli any more of his $210 million severance package.
    The restraining order request is part of a previously filed lawsuit in Fulton County Superior Court alleging that Home Depot overpaid senior executives and backdated stock options in violation of their fiduciary duties.
    While denying the restraining order, the judge also ruled that current and former senior officers and directors of the company will be subject to depositions as the case moves forward.

Home Depot to Meet With Activist Investor
1.22.07     Home Depot directors, including new Chairman Frank Blake, will meet this week with activist shareholder Ralph Whitworth. Whitworth’s Relational Investors LLC is seeking a seat on the Board and greater influence over the retailer.

Would Tom Taylor Return to Home Depot?
1.19.07      The whispered speculation began before the ink was dry on Bob Nardelli’s resignation agreement. And now the prospect of Tom Taylor’s possible return to Home Depot is being written about in the general business press.
    Taylor, 40, left Home Depot in July of last year after 23 years with the company. When he resigned, he was executive vice president of merchandising and marketing. He was one of the final management team members with connections to founders Bernie Marcus and Arthur Blank to leave the retailer.
    At the time of his departure, Taylor said he was ready “to take a break, spend time with my family, and decide what to do next in life.”
    Just this week, Taylor joined Sun Capital Partners, a Boca-Raton private-investment firm, as a managing director.
    Taylor has a consulting contract with Home Depot that runs through January 2009.
    New CEO, Frank Blake, is reputed to be a top-notch executive with outstanding management skills. But he lacks retail experience. Taylor, so the logic goes, would provide that vital experience and invaluable inside knowledge from day one of his return.

Frank Blake Short Bio:
1.15.07        Frank Blake has replaced Bob Nardelli as CEO of Home Depot. Blake joined Home Depot in 2002 as executive vice president, business development and corporate operations. He previously served as deputy secretary for the U.S. Department of Energy. Before that, he served in a variety of executive roles at GE. Blake also served as general counsel for the U.S. Environmental Protection Agency and deputy counsel to the elder George Bush when he was vice president. He has a Bachelors degree from Harvard and a J.D. from Columbia University School of Law.

Home Depot Shareholders File Suit to Stop Nardelli Payout

1.11.07 A request for a temporary restraining order was filed yesterday in Fulton County Superior Court in Atlanta by a group of Home Depot shareholders unhappy with the $210 million separation package granted by the company to former CEO Bob Nardelli.
The group had previously filed a suit alleging that the company has overpaid executives and backdated stock options in violation of its fiduciary duties.

Home Depot Partners With NFL
1.10.07        Home Depot said yesterday that it has signed a multi-year, multi-faceted marketing partnership agreement with the NFL.
    The agreement designates Home Depot as “the official home improvement sponsor” of the NFL and includes marketing rights to the Super Bowl, Pro Bowl, community affair activities and NFL Network programming through the 2009 football season.

Home Depot Changes CEO Pay Approval Process
1.9.07      Perhaps in response to the uproar surrounding the $210 million separation package granted former CEO Bob Nardelli, Home Depot yesterday announced it would require approval from two-thirds of its independent directors to determine compensation for its CEO. Previously, only a majority was needed for approval.
    Frank Blake, newly elected Chairman and CEO, also elaborated on the expanded duties of Carol Tome and Joe DeAngelo.
    DeAngelo, EVP and COO, will continue to lead HD Supply and assume expanded responsibilities for the company’s retail division.
    Tome, CFO, will now also be responsible for real estate, construction, growth initiatives, financial services and strategic business development.
    Blake also announced yesterday that Harvey Seegers, president of Home Depot Direct, and John Campi, senior vice president of global sourcing and vendor management, are leaving the company. Steve Skinner will lead Home Depot Direct and Brian Robbins will lead global sourcing on an interim basis, Blake said.
    “Obviously, this has been a week marked by significant change. Please be assured that our leadership team will continue to do everything possible to guide our business, associates and customers through this transition as smoothly as possible,” Blake said in an internal memo to employees.

Nardelli Resigns as Home Depot CEO, Blake Named Chairman
1.3.07    Home Depot announced this morning that Bob Nardelli has resigned his

position as chairman, president and CEO of the company, effective January 2, 2007. Frank Blake, formerly vice chairman and EVP, was elected chairman and CEO effective immediately to replace Nardelli.
The company also said that Carol Tome, current EVP and CFO, and Joe DeAngelo, current EVP of HD Supply, will take on additional responsibilities. DeAngelo has been named to the newly created position of chief operating officer and will continue to oversee HD Supply while assuming additional responsibilities for the retail operations. Tome will add responsibility for mergers and acquisitions along with her current duties.
Nardelli and the company have agreed on a separation package paying him approximately $210 million.
The Home Depot press release on the matter is at: http://ir.homedepot.com/ReleaseDetail.cfm?ReleaseID=224078.
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Home Depot Board Approves $3B Stock Buyback Plan