Lawson Products 4Q sales down 7.6 percent
Lawson Products reported net sales for the fourth quarter of 2015 decreased 7.6 percent to $65.0 million versus $70.3 million in the same period a year ago.
Sales were impacted by a general slow-down in the MRO marketplace, weak demand from customers in the oil and gas industry and a decline in the Canadian dollar. Average daily sales were $1.065 million in the recent quarter compared with $1.152 million a year earlier.
Net loss for the fourth quarter of 2015 was $3.7 million, or 42 cents per diluted share, compared to a net loss of $2.7 million, or 31 cents, for the same period a year ago.
Sales for the full year of $275.8 million were down 3.5 percent from the $285.7 million reported in 2014. Net income for the year was $297,000, or 3 cents per share, compared to a loss of $4.4 million, or a loss of 50 cents, in 2014.
"I am pleased with our performance and progress in 2015. Growth within many of our strategic accounts and the Kent Automotive Division, an approximate one percentage point gain in gross margins and a lower cost structure led to both improved operating profit and cash flow. These positive factors offset sales declines in our energy sector, an unfavorable Canadian dollar exchange rate and lower than expected industrial demand within the MRO marketplace. Lawson enters 2016 with a scalable infrastructure and in a strong financial position to further leverage our financial performance as we see improvements in the industrial sector,” said Michael DeCata, president and chief executive officer.
He added that top-line growth continues to be a major focus and the company plans to continue to grow the number of sales representatives.
"We expect to encounter some of the same sales headwinds in 2016 that we encountered this past year. Our goal is to continue to improve our operating performance regardless of these overriding issues and position ourselves for further growth as conditions improve. We will stay the course and focus on expanding our sales force, improving sales rep productivity and looking for accretive acquisition opportunities. Underlying all of these efforts is our continued emphasis on improving customer service,” concluded DeCata.
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.
