Posted July 1, 2011
MSC sales up 18%
MSC Industrial Direct reported net sales for the fiscal 2011 third quarter of $532.4 million, an increase of 18.2%.
Net income rose 40.3% to $62.1 million, or 97 cents per share, from $44.2 million, or 69 cents per share, a year ago.
For the first nine months of fiscal 2011, net sales increased 21.0% to $1.49 billion from $1.23 billion in the first nine months of fiscal 2010.
"Coming out of the recession in 2010, we laid out a plan that included accelerated market share gains due to the power of our model and our investment initiatives. It also included high expectations for earnings growth that would fuel operating margin expansion back towards our 18% annual historical high and beyond. Assuming we achieve our fourth quarter guidance, we would cross over the $2 billion mark in annual revenues for the first time in company history and expand operating margins by 280 basis points to a projected annual level of 17.1%," said David Sandler, president and chief executive officer.
Erik Gershwind, executive vice president and chief operating officer, said MSC's core manufacturing business boosted results. "Our solid fourth quarter guidance includes 13.5% revenue growth despite unusually large prior-year comparisons and a very tight government spending environment," he said.
For the fiscal 2011 fourth quarter, the company expects net sales to be between $518 million and $530 million.
