1/6/2011 11:38:00 AM
NEWS BRIEFS
MSC Sales Jump Amid U.S. Manufacturing ‘Resurgence’
MSC Industrial Direct Co. reported sales rose 22.9% to $472.8 million for the fiscal 2011 first quarter, which ended November 27, 2010. Operating income increased 51.2% to $77.2 million, or 16.3% of net sales.
For the first quarter of fiscal 2011, MSC reported net income of $47.6 million, an increase of 51.4%. Diluted earnings per share jumped 50% to $0.75 (based on 62.8 million diluted shares outstanding).
“Our first quarter results reflect strong performance in a highly competitive environment,” commented CEO David Sandler. “We made solid progress executing on our strategic investment program designed to capitalize on the unique opportunity we see to leverage our model and fuel further market share gains.”
MSC recently completed the acquisition of Rutland Tool & Supply Co., which supports our growth strategy by further strengthening its metalworking presence while also boosting market share in the Western U.S.
“We saw excellent revenue growth in the first quarter against more challenging comparables, driven by strong market share gains, the resurgence of the U.S. manufacturing base and strong performance within our core customer base,” added COO Erik Gershwind. “These factors more than offset some slowing in demand from government customers, who are feeling more financial restraints as their budgets remain under pressure. Overall, we are encouraged by improving customer sentiment and the macro indicators in the market.”
For the fiscal 2011 second quarter, MSC expects net sales of $466 million to $478 million, which includes approximately $6 million in sales from Rutland, and expects diluted earnings per share for the second quarter of fiscal 2011 to be between $0.66 and $0.70, which includes dilution of $0.03 from the Rutland acquisition, primarily arising from acquisition and integration costs.
“We are pleased with our progress in delivering on our strategic objectives of disproportionate revenue growth, generating significant operating leverage and investing for the future,” Sandler concluded. “We have never been more confident in our position to capitalize on the opportunities ahead of us.” ©2011 GlobalFastenerNews.com
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