Posted February 25, 2010
Lawson Products reports 16.4% sales decline
Lawson Products said its net sales for the fourth quarter of 2009 were $89.3 million, a 16.4% decrease compared to $106.8 million for the prior year period, reflecting continued weakness in the economy.
Gross profit decreased to $51.3 million in the most recent quarter, a $9 million decline from the prior year fourth quarter. However, gross profit margin for the fourth quarter of 2009 increased to 57.5% compared to 56.5% for the same period a year ago. The margin improvement was primarily due to improved pricing in the OEM segment and an increase in the proportion of total sales generated by the higher margin MRO segment.
The operating loss for the fourth quarter of 2009 was $2.9 million compared to an operating loss of $4.8 million in 2008. The company reported a net loss of $0.1 million or 2 cents per share in the fourth quarter of 2009 compared to a loss of $5.4 million or 64 cents per share a year ago.
Net sales for the year were $378.9 million, a 21.9% decrease compared to $485.2 million in 2008.
