5/17/2010
HEADLINES
Stock Report: MSC INDUSTRIAL

MSC Industrial Direct reported net sales rose 12.4% to $395.5 million in the second quarter of fiscal 2010, with operating income growing 15.4% to $49.9 million and net income increasing 16.6% to $26.3 million.

MSC said both inventory turns and days sales outstanding in receivables improved during the period, reflecting what CEO David Sandler called a “solid performance against a backdrop of improving market conditions.”

Sales for the first half of fiscal 2010 dipped 5% to $780.3, while net income dropped 13% to $62.1 million.

“Having passed through the most challenging economic climate in recent history, we are now seeing encouraging signs of stabilization in the market,” Sandler stated.

MSC forecasts net sales of $436 million to $448 million for the fiscal third quarter.

In fiscal 2009 full year sales, including fasteners, decreased 16% to $1.49 billion, with operating income falling 35% to $204.7 million and net income slipping 36% to $125.1 million.

MSC boosted its fastener offerings by 40% in 2008, which helped it achieve higher sales.

Founded in 1941, Melville, NY-based MSC Industrial distributes 600,000 metalworking and MRO supplies – including fasteners and hardware – from 3,000 suppliers to 343,000 customers.

MSC offers 42,000 fastener products among its 590,000 industrial products from 3,000 suppliers.

Founded in 1941 by Sid Jacobson as Sid Tool, MSC has 95 branch sales offices (94 in the U.S. and one in the UK) with five fulfillment centers: Atlanta; Elkhart, IN; Harrisburg, PA; and Reno, NV; and Wednesbury, UK.

Corporate Office: 75 Maxess Rd., Melville, NY 11747-3151.
Tel: 516 812-2000 Fax 800 255-5067

Web: mscdirect.com

CEO: David Sandler

Investor Relations: Charles Boehlke

Employees: 4,261

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