10/24/2014 10:49:00 AM
NEWS BRIEFS
Lawson Products Sees Revenue & Profit Growth
Lawson Products reported net sales, including fasteners, for the third quarter of 2014 gained 8.6% to $74.1 million. Average daily sales increased 8.6% to $1.158 million, driven by a 13% year-over-year sales growth in strategic accounts and 19% growth from the Kent Automotive division.
Gross profit percentage for the period was 60.1% compared to 60.4% in the third quarter of 2013. This modest decline was primarily due to lower net freight recoveries and an increase in lower margin strategic accounts.
Q3 net income slipped to $500,000, or $0.05 per diluted share, as compared to net income of $600,000, or $0.07 per diluted share.
As of September 30, the company said it was debt free.
“The improved productivity from our existing sales team and the growth in the number of new sales representatives are helping top-line sales while continued improvements in operational efficiencies are strengthening our customer service and helping us deliver stronger bottom line results,” stated CEO Michael DeCata.
Lawson Products added 88 direct sales reps in the first nine months of 2014 and remain on pace to grow the team by approximately 15% this year.
Nine-month sales grew 5.7% to $215.4 million, with gross profit up 6.5% to $129.6 million. The company reported a $1.7 million loss so far in 2014, down from the $2.25 million loss achieved during the first nine months of 2013.
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