4/8/2015 12:54:00 PM
NEWS BRIEFS
MSC Profit Drops Despite Sales Gains

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MSC Industrial Supply reported net sales for the fiscal second quarter of 2015 rose 6.8% to $706.4 million. Adjusted operating income fell 3.9% to $86.3 million, or 12.2% of net sales, compared to $89.8 million, or 13.6% of net sales, in the same quarter a year ago. Adjusted net income declined 5% to $51.8 million.

“We have seen a significant and swift change in the demand environment since the start of the calendar year due to the impact of the rapid drop in oil prices, softening export demand and poor weather,” stated CEO Erik Gershwind.

MSC’s double-digit growth in national accounts and government continued, while core customers lagged the company average in the fiscal second quarter. 

“Our growth rates were solid in December, improved in January, and then dropped significantly in February as the environment deteriorated,” Gershwind added. “These soft conditions continued into March, the first month of our fiscal third quarter.”

MSC expects net sales for fiscal third quarter 2015 to be between $740 million and $752 million.

Founded in 1941, Melville, NY-based MSC Industrial distributes 685,000 metalworking and MRO supplies – including 42,000 fastener products. Web: mscdirect.com