Posted November 7, 2011
Lawson Products sales fall 7.6 percent
Lawson Products said its net sales for the third quarter of 2011 decreased 7.6% to $75.4 million compared to $81.6 million in the prior year quarter.
Net loss for the third quarter of 2011 was $2.2 million, or 25 cents per diluted share, compared to net income of $3.4 million, or 40 cents per diluted share, in the prior year.
The company blamed the sales decrease on a disruption in service during a conversion to a new ERP system. "The conversion temporarily impacted the company's ability to timely replenish its distribution centers resulting in lower fill rates and, in some cases, untimely shipments to its customers," according to a company statement.
"While our third quarter financial performance was temporarily impacted by the conversion to the new ERP system, we are already seeing signs that it will provide us with the important tools to manage the business and enhance our customers' experience," said Thomas Neri, president and chief executive officer.
Nine-month sales increased 2.3% to $242.1 million year-over-year. Year-to-date, national and government sales represent 17.1% of sales as compared to 15.7% a year ago.
