MSC Industrial sales up 6.8%
MSC Industrial Supply reported net sales for the fiscal second quarter 2015 were $706.4 million, an increase of 6.8% on an average daily sales basis.
Adjusted net income for the quarter was $51.8 million, or 84 cents per diluted share, compared to $54.5 million, or 87 cents, in the same quarter a year ago.
"We have seen a significant and swift change in the demand environment since the start of the calendar year due to the impact of the rapid drop in oil prices, softening export demand and poor weather," said Erik Gershwind, president and chief executive officer. "Our double-digit growth in National Accounts and Government continued, while our Core customers lagged the company average in the fiscal second quarter. Our growth rates were solid in December, improved in January, and then dropped significantly in February as the environment deteriorated. These soft conditions continued into March, the first month of our fiscal third quarter."
Sales for the first six months of the year were $1.43 billion, compared to $1.34 billion a year ago.
Jeff Kaczka, executive vice president and chief financial officer, commented, "Despite the external challenges that led to sales well below our guidance, we delivered earnings per share within our guidance range. I am very encouraged by our stabilizing gross margins, reflecting the positive impact of our gross margin initiatives, and our continued expense management. We expect our gross margin to remain sequentially stable in the fiscal third quarter and our growth initiatives to continue fueling share gains as we move through the remainder of fiscal 2015 and beyond."
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.
