7/31/2009
NEWS BRIEFS
MRO Fastener Sales Do Better for Lawson Products
Lawson Products reported second-quarter sales, including fasteners, decreased 25% to $95 million “as the economic recession continued to depress customer demand.” Gross profit dropped 23% to $55.9 million.
MRO sales, including fasteners, fell 23% to $80.6 million, while operating income declined 44% to $3.9 million during Q2. Six-month MRO sales slid 22% to $163.4 million, with operating income plunged 81% to $2.9 million.
OEM sales, including fasteners, decreased 32% to $14.5 million, producing a $905,000 loss in Q2. OEM sales during the first half of 2009 dipped 26% to $31 million, with a loss of $2.4 million for the period.
During the second quarter Lawson sold its Charlotte, NC, distribution for about $2.2 million. Likewise, Lawson is preparing to sell its distribution center in Dallas, TX.
The company also said it would layoff 150 employees – about 11% of its overall workforce – and lower sales commissions.
The job cuts and facility consolidation are expected to save the company between $10 million and $12 million annually.
Overall sales during the first half of 2009 fell 23% to $194.4 million, with gross profit declining 25% to $110 million. ©2009 GlobalFastenerNews.com
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