MSC sales decline 3.3%
MSC Industrial Supply Co. reported that net sales of $706.8 million in its fiscal 2016 first quarter declined 3.3% year-over-year.
Net income of $55.0 million, or 89 cents per diluted share, compared to net income of $57.4 million, or 91 cents, in the same period last year.
Erik Gershwind, president and chief executive officer, said, "Our fiscal 2016 first quarter performance reflected continued share gains, sustained gross margin stabilization, and another quarter of strong expense controls in an increasingly challenging market environment. Ongoing lower oil prices, the strong U.S. dollar with its negative effect on export demand, and the soft pricing environment driven by low commodity prices all continue to negatively impact broader manufacturing activity."
Rustom Jilla, executive vice president and chief financial officer, added, "Our first quarter EPS was at the top of our guidance range with average daily sales in-line with guidance, gross margins at the top end, and operating expenses at the midpoint. The headwind from a soft pricing environment remains significant, but the execution of our gross margin countermeasures helped offset its impact. We also continued to reduce our operating expenses and our extremely strong cash flow generation was aided by a reduction in working capital, which is usual in this type of challenging sales environment."
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
