7/27/2016 10:57:00 AM
NEWS BRIEFS
Lawson Products Sales Decline
Lawson Products reported sales, including fasteners, fell 2% to $69.3 million in the second quarter of 2016. The company said sales were negatively impacted by the continued slow-down in the MRO marketplace, ongoing weak demand from customers in the oil and gas industry and a decline in the Canadian dollar.
“This overall decrease was partially offset by continued volume growth in the Kent Automotive Division, the addition of several new strategic customers and growth within our non-federal government business.”
Q2 net income declined to $200,000 from $2.9 million a year ago, “reflecting the additional costs associated with the expansion of the sales organization.”
“While sales were softer than we would have liked for the quarter, our results were consistent with slower industrial activity impacting the MRO marketplace,” said CEO Michael DeCata. “We accelerated investments in our organization primarily through adding new sales representatives, investing in our veteran reps and pursuing acquisitions that fit our business model.”
Lawson said it added 60 sales representatives during Q2, bringing our total sales force to more than 1,000.
During Q2 Lawson acquired F.B. Feeney Hardware of Ontario, Canada – the company’s third acquisition in the past nine months.
Lawson sales during the first six months of 2016 fell 1.1% to $139.1 million, with operating income down 48% to $1.2 million and net income down 23% to $1.2 million. Web: lawsonproducts.com
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