5/17/2010
HEADLINES
Stock Report: LAWSON PRODUCTS

Lawson Products reported revenue decreased 21.9% to $378.9 million in 2009, while gross profit fell to $217.8 million and the company’s operating loss narrowed from $20.2 million in 2008 to $5.6 million last year.

In 2009, 93% of net sales were generated in the U.S. and 7% from Canada.

Fastening systems accounted for 19% of company revenue in 2009, down from 20% the previous year.

MRO sales, including fasteners, declined 20.6% to $320.4 million, with gross profit slipping 22% to $207.1 million. Fastening systems make up 20% of MRO revenue.

OEM sales, including fasteners, dipped 28% to $58.5 million. Gross profit fell 15% to $10.6 million.

During the year Lawson closed two MRO distribution centers: Charlotte, NC and Dallas, TX. Other cost reductions included trimming its workforce by over 18%.

Lawson’s OEM segment includes Assembly Component Systems, which provides fasteners and components to durable goods manufacturers, and Automatic Screw Machine Products Co., which manufactures and distributes components, fasteners and fittings for use by OEMs.

In December 2005 Lawson bought Rutland Tool, a distributor of metalworking tools, machine tools, fasteners and related MRO supplies, for about $15 million.

Rutland Tool’s product line includes bolts, nuts and socket head cap screws. Rutland Tool has facilities in Whittier, Santa Ana, Chatsworth and San Jose, CA; Houston; Phoenix; and Suwanee, GA.

Lawson has several distribution centers and a manufacturing plant – Automatic Screw Machine Products Co. of Decatur, AL.

Corporate Office: 1666 E. Touhy Ave., Des Plaines, IL 60018.
Tel: 708 827-9666 Fax 847 297-2037

Web: lawsonproducts.com

CEO: Thomas Neri, 58

Investor Relations: Ron Knutson, CFO

Employees: 1,100

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