State law fuels sales of carbon monoxide detectors in Vallejo

"We made a whole section just for that," a Vallejo Home Depot employee who asked not to be identified said. "They've been selling steadily because of the law."

Sales of the devices are up compared to last year, the employee said.

"It's like that everywhere," the employee said. "It's a no-brainer."

A state law passed in May 2010, requires owners of single-family homes with an attached garage or appliances that burn gas, coal or wood, to install carbon monoxide detectors by July 1. Failing to do so could result in a $200 fine, though violators would have a month to comply before having to pay.

Multifamily units like apartment buildings and condominiums, have until Jan. 1, 2013, to get the detectors installed.

Experts say there are 30 to 40 accidental carbon monoxide-poisoning deaths state-wide annually. The law meant to prevent those was written by state Sen. Alan Lowenthal, D-Long Beach.

As water heaters, gas stoves and other such appliances burn their fuel, they produce carbon monoxide gas. The colorless and odorless fumes are toxic to humans and animals in high concentrations because they suffocate body organs as they cut off oxygen to the red blood cells.

Vallejo resident and business owner Bill Richardson said he plans to comply with the law as does Vallejo Realtor and property manager Curtis Lafferty.

"I haven't done it yet," Richardson said. "I was just reading about it on the Internet. I have a smoke detector and a sprinkler system, and I guess I'll have to stick one of them in, too."

Lafferty, of Century 21 Schutjer Realty, said installing the detectors in his rental properties is his next project.

"We're going to start purchasing and installing them in the next few days," he said.

Retail websites show the devices range from about $20 to about $100.

The units should be installed near sleeping areas, the kitchen and on every level of the home, according to the state Fire Marshal's Office.

"They call carbon monoxide the silent killer," Vallejo Fire Department Battalion Chief David Urrutia said. "It's like smoke detectors and sprinkler systems. Anything that helps people get out in time makes our jobs easier.

The Home Depot | Masco Retains Underperform | Georgia Public Companies

We reiterate our Underperform recommendation on Masco Corporation ( MAS – Analyst Report ), which manufactures, sells, and installs home improvement and building products.

The company earns 75-80% of revenues from the operations in North America, primarily in the U.S., while its international operations are located principally in Belgium, China, Denmark, Germany, the Netherlands, and the U.K. The company’s principal customer Home Depot, buys approximately 20%-30% of its production.

Masco recently reported its fiscal first quarter results delivering a loss of 5 cents per share in stark contrast to a profit of $0.03 per share during the year-earlier quarter. The company’s loss was broader than the Zacks Consensus Estimate of a loss of 3 cents. It was attributed to poor North American sales during the quarter, partially due to expiration of home buyer tax credit in mid-2010.

Net sales, which were in line with the Zacks Consensus Estimate fell 4% to $1.77 billion. Except Plumbing Products and Other Specialty Products segment, all the company’s segments reported a decline in revenues. Operating profit (adjusted) went down significantly to $53 million from $93 million in the first quarter of 2010.

North American sales dipped 7% to $1.33 billion while international sales rose 4% to $439 million. In local currencies, international sales increased 5% from the first quarter of 2010. Segmentwise, sales in the Cabinets and Related Products segment fell 24% to $307 million; Installation and Other Services slipped 7% to $254 million and Decorative Architectural Products declined 4% to $375 million. Meanwhile, sales in Plumbing Products and Other Specialty Products rose 7% to $710 million and 2% to $126 million, respectively.

The following factors lead to an “Underperform” recommendation of Masco, nearly half of Masco’s revenues are related to new home sales. Falling home prices have made buyers reluctant to spend money on home investment projects. This has reduced Masco’s sales, which fell by almost 4% in the last quarter. Consequently, this will not only exert negative pressure on the company’s inventories and product prices but also affect margins.

Rising prices of raw materials are also impacting the company’s margins. Most of Masco’s products are made with the use of particle board, copper, brass, titanium dioxide and resins. Prices of each of these materials have risen steadily, driven by the global supply-demand process, certain feedstock restrictions and the price spread between crude oil and natural gas.

Inside Home Depot, how one company revolutionized an industry through the relentless pursuit of growth

Show Me the Money, Writing Business and Economics Stories for Mass Communication

Strategic management, competitiveness and globalization : concepts & cases

Business statistics for competitive advantage with Excel 2007

International Directory of Company Histories