United Stationers sales up 8.9%
United Stationers reported fourth quarter sales increased 8.9% to $1.33 billion compared to the fourth quarter of last year.
Net income for the period of $25.8 million, or 67 cents per share, compared to $35.1 million, or 85 cents, for the same period last year. The lower earnings were primarily driven by an $8.2 million loss on the sale of its subsidiary MBS Dev, a distribution software company.
Sales of industrial supplies increased 58.6 percent to $197.2 million, including $66.6 million from the CPO and MEDCO acquisitions, from $124.3 million in 2013.
MEDCO is a wholesaler of automotive aftermarket tools and supplies and CPO is an e-retailer of brand name power tools and equipment.
Organic industrial supplies sales were up 5.1 percent over the prior year quarter. Janitorial and breakroom supplies sales increased 11.4 percent to $371.0 million from $333.0 million.
"We finished the year with strong sales momentum in the face of rapidly changing industry dynamics," said Cody Phipps, president and chief executive officer. "Nonetheless, we are taking decisive actions to maximize future operating results and deliver enhanced customer service in the years ahead."
During 2015, the company plans to invest $15 million to move to a common operating platform and will record a charge of approximately $9 million related to consolidating facilities.
Full-year sales increased 4.8% and gross margin declined to 15.2% compared with 15.5% in 2013, driven primarily by a shift in customer and product mix and higher freight costs.
Sales of industrial supplies increased 23.4 percent from $517.8 million to $638.8 million, including $96.7 million from the CPO and MEDCO acquisitions. Organic industrial supplies sales were up 4.7 percent over last year. Janitorial and breakroom supplies sales increased 8.4 percent to $1,448.5 million from $1,336.2 million.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
