MSC Industry Direct Co. reported sales, including fasteners, declined 2.9% to $686.3 million in the open quarter of fiscal 2017.

Operating income edged up 0.25% to $90.6 million and net income dropped 1.7% to $54.1 million.

“As we moved into December, the start of our fiscal second quarter, we saw growth in sales, as well as improvement across all of our customer types and a higher mix of machinery, machine tool accessories, tool holders, and tooling package orders,” stated CEO Erik Gershwind.

“These capital-related sales have historically increased when customers are more optimistic about investing in their businesses.”

First quarter operating margin of 13.2% improved despite lower sales, with stable gross margins and continued expense discipline.

MSC Direct expects net sales for the second quarter of fiscal 2017 to be between $688 million and $701 million, with diluted earnings per share between $0.86 and $0.90. Web: mscdirect.com