Hornby's Financial Report...

Warning, this report contains some terrible puns and hackneyed clichs:
http://www.fool.co.uk/news/investing/company-comment/2009/06/05/hornby-hits-the-buffers.aspx

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On Fri, 5 Jun 2009 16:38:51 +0100, kim put finger to keyboard and typed:

Interesting comment in there about overseas outsourcing, which looked a very good deal while the pound was strong but much less so in different financial climes. The flip side of that is that increased outsourcing costs for the likes of Hornby ought to be good news for domestic manufacturers such as Dapol.
Mark
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Mark Goodge wrote:

FWIW: July MR has a review of Hornby America's reissue of Rivarossi's Big Boy with DCC sound. It's the same molding as in the 1960s, with a few detail upgrades, and the RP25 wheels which Rivarossi introduced when it still had a close relationship with Walthers (the premier model train distributor.) Not a bad model, engineered to traverse 18" radius curves, and runs very well. But electrical pickup is poor (only 8 wheels, none on the tender.) Placement of the sound decoder and speaker in the engine instead of the tender is IMO a bad design decision. IOW, an engine of medium to low quality. The list price is $420US. For comparison: the Athearn Big Boy with DCC sound lists at $450, street price around $370. Blueline makes a DCC-ready Big Boy with DC sound, lists at $470, street prices around $390. If Hornby's wholesale pricing conforms to N. American practice, the street price should be $330-350 which would make it an acceptable buy, but not a bargain.
It seems to me that Hornby hasn't quite figured out the N. American market yet.
cheers,
wolf k.
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On Fri, 05 Jun 2009 21:57:04 -0400, Wolf K wrote:

hornby-hits-the-buffers.aspx
Amazing - Hornby doing well if difficult times, but you still know better! Have you applied for a job on their Board? Sorry to be harsh, but from your posts it's obvious that you are well out of touch with what's going on in Europe and your "Hornby are always wrong" sniping is getting very tedious - just an acknowledgement of their success occasionally would add credibility.
I'm not on Hornby's Board, but I am on the Board of a model railway business that will launched in the next fortnight, so at least I'm putting my money where my mouth is!
Cheers Richard
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beamends wrote:

[...]
Oh well, I just read the UK magazines every couple or three months, and study the adverts. I guess that means I'm out of the loop.

Hey, I think Hornby is doing most things right. Heck, they even use the same wheel dimensions as Bachmann (or is it the other way round? Who cares - it's a _standard_, which is a Good Thing.) ;-)
It's just that I want them to succeed in N. America. They bought Rivarossi as much for the US outline models as for any other reason, right? I mean, I wouldn't buy Rivarossi just for nostalgia's sake, would you? But to succeed here they will have to face up to some rather brutal competition. When a loco listed at $400 is offered for $180, with free shipping, you know something is happening to the market, and it's not just "these tough economic times" (which was and is a financial swindle, anyhow.) Offering an old model for something too close to the price of a recently tooled one is not the way to succeed.

Good for you, and best wishes.
Advice please: I want a nice little GWR pannier tank and two chocolate and cream coaches, ca. 1947-54, for a Christmas village (with snow, even. ;-) ) Both Bachmann and Hornby offer suitable items. Which would you advise? Strengths, weaknesses of each?
Thanks.
cheers,
wolf k.
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On Sat, 06 Jun 2009 20:49:28 -0400, Wolf K wrote:

I'm afraid you'd have to ask someone who sells 00 ready to run. I'll be specialising in something else. I did look at 00 RTR and it was soon apparent that that market is overcrowded for web sales and unsustainable for the "shop" market. My advice would be the obvious - to compare the two side by side and see which you like best, but therein lies the 00 problem, lack of shops to actually see them in. A very good reason for not getting involved!

Cheers Richard
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that depends on where you live - there are still a fair number of shops about. Worth visiting model railway exhibitions as there are usually a fair number of traders about. However, the danger of traders that you dont know is obvious, so maybe not buy there.
Sorry, know absolutley nothing about GWR stuff - now if it was beautiful red LMS you wanted....
Cheers, Simon
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Do tell - what youre going for and get some advance publicity....
Cheers, Simon
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On Mon, 08 Jun 2009 22:38:19 +0100, simon wrote:

I could tell you, but I'd have to kill you ... ;-)
Watch this space......

Cheers Richard
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"beamends" wrote

Are they really, or are you just reading their hype?
As a retailer with over a quarter of a century of selling model trains, I'd suggest that they are doing anything but well. Their products are over-priced here in the UK and are not selling well, otherwise why do they appear to be 'jobbing' so much unsold stock.
They're also having serious supply problems at a time when the Chinese economy is extremely fragile and you'd expect the Chinese to be producing as much stock as they possibly could.
John.
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wrote:

Hi John,
are they "jobbing" any of the European outline models??? :-)
Greg.P. NZ
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On Sun, 07 Jun 2009 18:56:59 +0100, John Turner wrote:

The figures look good at the FT, where it matters. Personally I'd not look for useful info about a company in the Daily Mail and such ;- )

Everyone else has had problems too - the Chinese economy is in a far worse state than ours (75% of toy makers have gone bust - source BBC News financial section). Hornby's supply problem has been public knowledge for some time and has been successfully addressed. In my trade suppliers have simply vanished overnight, so again a feather in the cap to Hornby for sorting it out. The Chinese economy works very differently to ours, who makes what where is not just down to a commercial descision or customer choice.

Cheers Richard
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wrote:

Have you ever noticed retailers advertizing goods you know they can't possibly have, and accepting orders and deposits they presumably know they can't yet supply? Would the Chinese do that too? ;-)
The manufacturers may well have materials supply shortages as they are allocated such resorces by a central government organisation. China definitely has materials shortages overall.
The manufacturers almost certainly have organisational problems due to the company failures and takeovers.
Regards, Greg.P.
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http://www.fool.co.uk/news/investing/company-comment/2009/06/05/hornby-hits-the-buffers.aspx
Hornby's financial news always bring out the worst puns. I was going to make a post compiling the bext/worst of them, but here they are....
The Times - Problem with supplier sends Hornby off the rails
Telegraph - Light at end of tunnel for toy maker Hornby
FT - Hornby remains on track
Daily Mail - Toy maker Hornby hits buffers after sterling lacked steam
I think the winner is the Daily Mail for getting two in one headline.
Fred X
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