Lawson Products sales decline
Sales at Lawson Products declined 2.2% to $68.3 million in the second quarter of 2013 compared to $69.8 million last year.
The company said an improvement in sales force productivity of 3.3% from a year ago was offset by reduced sales coverage due to a 5% decline in the average number of sales representatives compared to the prior year period. Average daily sales were consistent with the first quarter of 2013.
Net income for the quarter was $0.4 million, or 5 cents per diluted share, compared to a loss of $61.2 million, or $7.12, a year ago.
Lawson ended the quarter with 773 sales representatives, up 13 from March 31, and is on target to have more than 800 sales representatives by year-end, the company said.
Lawson completed the transition of its Addison, Ill., distribution center to its new McCook, Ill., facility. The company believes it will achieve future benefits from its McCook facility through increased operating efficiencies and enhanced customer service as a result of reductions in order delivery times and increased order fulfillment rates to support sales growth.
"With the final phase of the McCook, Illinois transition complete, we look forward to realizing expected operational efficiencies going forward. These improvements provide us a solid platform on which to grow the business,” said Michael DeCata, president and chief executive officer.
In June, the company entered into a non-binding letter of intent to sell its Automatic Screw Machine Products Company subsidiary for approximately $12.5 million. The transaction is expected to be completed by the end of the third quarter of 2013.
“We are committed to growing our business and creating value for our shareholders. We will do so by providing our customers with high quality services and products, adding sales representatives, improving their productivity and enhancing our performance through improved operational efficiencies,” said DeCata.
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.
