Posted April 28, 2011
Lawson Products sales up, income falls
Lawson Products reported net sales of $82.6 million in the first quarter of 2011, an increase of 10.2% over the prior year quarter.
The increase was primarily the result of continued growth in national, government, and automotive segments.
Net income for the first quarter of 2011 was $2.0 million, or 23 cents per diluted share, compared to $2.3 million, or 27 cents per diluted share in the prior year quarter.
Gross profit increased by $3.6 million to $49.9 million in the first quarter of 2011. As a percent of net sales, gross profit declined to 60.5% in the first quarter of 2011 from 61.8% in the first quarter of 2010, primarily due to a planned shift in the sales mix toward higher volume customers that carry lower gross margins. However, lower commissions are typically paid on these sales resulting in a net margin improvement, the company said.
"The continuing economic recovery is providing an improving backdrop for our ongoing efforts to achieve sustainable growth," said Thomas Neri, president and chief executive officer. "Throughout the remainder of the year, we will continue to strengthen our foundation in the MRO marketplace, with a specific focus on targeting opportunities in strategic, high-growth segments. This ongoing effort, which includes the implementation of our ERP platform and other infrastructure improvements, will result in ongoing costs during 2011, however, will position the company for long-term growth."
