1/8/2014
NEWS BRIEFS
Barnes Distribution Boosts MSC Industrial Sales
MSC Industrial Direct reported sales for the first quarter of fiscal 2014 rose 17.5% to $678.5 million. The recently acquired Barnes Distribution North America (“BDNA”) business contributed approximately $72.4 million to sales in fiscal Q1, which ended November 30, 2013.
Excluding costs of $5.8 million associated with the BDNA acquisition and the co-location of the Company’s headquarters, adjusted operating income was $102.5 million, or 15.1% of net sales, compared to $103.7 million, or 18% of net sales in the same quarter a year ago. GAAP operating income was $96.8 million, or 14.3% of net sales, compared to $102.4 million, or 17.7% of net sales in the same quarter a year ago.
Adjusted net income slipped 2.2% to $62.6 million, or $0.99 per diluted share. The BDNA operations contributed approximately $0.05 to the fiscal first quarter EPS. GAAP net income for the first quarter of fiscal 2014 was $59.0 million, or $0.93 per diluted share, compared to $63.2 million, or $1.00 per diluted share, a year ago.
“The manufacturing environment stabilized and began to show potential signs of improvement during the first fiscal quarter of 2014,” stated CEO Erik Gershwind. “Combined with strong execution of our share gain initiatives and the early stages of our BDNA growth plan, a healthier environment contributed to solid performance in the quarter and gives us even greater confidence going forward.”
MSC expects fiscal Q2 sales of $660 million and $672 million, with operating margin of 13%.
MSC is closing the corporate headquarters of BDNA in Cleveland and merging the Cleveland facility into MSC’s new corporate headquarters in Davidson, NC.
MSC will integrate 5 of the 9 BDNA locations into MSC operations over the next 18 months.
MSC completed its $550 million acquisition of BDNA on April 22, 2013. ©2014 GlobalFastenerNews.com
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