Lawson Products 4Q sales rise
Lawson Products reported fourth quarter sales increased 1.9% to $65.7 million from $64.5 million in the same period in 2012.
The company posted a net loss for the fourth quarter of $2.9 million, or 33 cents per diluted share, compared to income of $1.7 million, or 20 cents, for the same period last year.
For the full year, Lawson's sales were $269.5 million, a 1.5% decline from $273.5 million in 2012. Lawson recorded a loss of $5.1 million, or 59 cents per share, compared to a loss of $62.5 million, for a $7.28 per share loss, in 2012.
Lawson ended the fourth quarter with 806 sales representatives, compared to 757 at the beginning of the year, an increase of over 6%, and the third consecutive quarter in a row with a net sales rep increase.
Average daily sales increased 2.0% to $1.078 million from $1.057 million in the fourth quarter of 2012. As new sales representatives are added, the company anticipates a short-term decrease in average sales per sales representative per day, as new representatives build up customer relationships in their territories.
“The fourth quarter results reflect our continued progress to improve our operations and add to our sales force. Our previous investments and focus on cost controls now provide a platform for future growth," said Michael DeCata, president and chief executive officer.
During the quarter, the company agreed to sell Automatic Screw Machine Products Company for $12.5 million to help pay down existing debt, and subleased a portion of its headquarters for net cash savings of approximately $2.9 million through the life of the sublease term of March 2023.
“Improvements in our core operations will continue to make us more competitive in the MRO marketplace and lead to greater customer loyalty and additional business. With major investments and business enhancements behind us, we are now in a position to aggressively expand our sales force, continue to improve our processes and leverage our existing infrastructure,” said DeCata.
INDUSTRIAL SUPPLY MAGAZINE
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