United Stationers posts 1Q loss
United Stationers reported that first quarter sales increased 6.2% to $1.33 billion compared to the first quarter of last year driven by prior year acquisitions.
The company had a net loss of $3.99 million for the quarter, or 10 cents per share, compared to net income of $21.8 million, or 56 cents, in the same period last year. Much of the loss was a result of "repositioning action" related to the company's move to a common operating and information platform.
Sales of industrial supplies increased 57.2 percent to $210.3 million, including $90.2 million from the CPO and MEDCO acquisitions made in 2014. Weakness in the energy and industrial sectors drove a $13.7 million sales decline in the core industrial business. Janitorial and breakroom supplies sales increased 8.3 percent to $357.7 million from $330.3 million. Total office products sales were down 3.5 percent to $727.3 million from $753.6 million.
"Our results reflect solid execution of our strategy despite a decline in our core industrial business from weakness in the energy sector," said Cody Phipps, president and chief executive officer. "This quarter we took decisive actions to maximize future operating results and deliver enhanced customer service in the years ahead. We are investing in a common operating and information technology platform, consolidating our workforce and facilities, rebranding the company to Essendant across our businesses, and exiting a non-strategic and low margin business. These actions are consistent with our strategy to become the fastest and most convenient solution for workplace essentials. I remain confident these actions will accelerate our operating performance, position us for success in the market, and benefit our shareholders."
INDUSTRIAL SUPPLY MAGAZINE
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