7/10/2014 2:08:00 AM
NEWS BRIEFS
MSC Direct Achieves Strong Sales Growth Despite “Soft Pricing”
MSC Industrial Direct reported net sales, including fasteners, increased 13.1% to $720.5 million in the fiscal third quarter of 2014, which ended May 31.
Adjusted operating income was $107.3 million, or 14.9% of net sales, compared to $106.6 million, or 16.7% of net sales in the same quarter a year ago. GAAP operating income was $104.9 million, or 14.6% of net sales, compared to $100.2 million, or 15.7% of net sales in the same quarter a year ago.
Excluding the after tax effects of non-recurring costs, adjusted net income for the fiscal third quarter 2014 was $66.2 million, or $1.06 per diluted share (based on 62.2 million diluted shares outstanding), compared to $66.7 million, or $1.05 per diluted share, in the same quarter a year ago (based on 63.1 million diluted shares outstanding).
GAAP net income for the fiscal third quarter 2014 was $64.7 million, or $1.03 per diluted share, compared to $62.4 million, or $0.98 per diluted share, in the same quarter a year ago.
“Our strategic growth programs continued to drive share gains during our March through May third fiscal quarter against the backdrop of continued improvement in overall market conditions,” stated CEO Erik Gershwind.
Gershwind characterized the current demand environment as “one of moderate growth, despite the soft pricing environment.”
“We are moving our overall portfolio of business towards high retention channels including VMI, vending, Class C and mscdirect.com,” added Gershwind.
MSC expects net sales for fiscal fourth quarter 2014 to be between $718 million and $730 million. At the midpoint, average daily sales growth is expected to be 7.5%, which includes CCSG sales that are expected to be growing at a lower rate than the MSC base business.
Adjusted diluted earnings per share for the fiscal fourth quarter 2014 are forecasted to be between $0.98 and $1.02. ©2014 GlobalFastenerNews.com
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