MSC profits rise
MSC Industrial Direct reported net sales for the first quarter of fiscal 2013 of $577.5 million, an increase of 5.8% compared to the first quarter last year.
Excluding costs of $1.3 million related to co-location of the company's headquarters in Davidson, N.C., adjusted operating income for the quarter was $103.7 million, or 18.0% of net sales, compared to $96.8 million, or 17.7% of net sales in the same quarter a year ago.
Adjusted net income rose 7.0% to $64.0 million, or $1.01 per diluted share, compared to $59.8 million, or 95 cents per diluted share, a year ago.
"I am pleased with our performance this quarter and our continued success in executing our strategy. We produced revenue growth of nearly 6% in an eroding demand environment impacted by uncertainty and caution over the fiscal cliff," said Erik Gershwind, president and chief executive officer. "Our team demonstrated exceptional cost control, as reflected in adjusted incremental margin of over 20%, and strong execution of our share gain initiatives, such as vending and e-commerce."
Jeff Kaczka, executive vice president and chief financial officer, said the company reduced inventories and nearly doubled cash flow from operations as a result of "aggressively and carefully" managing expenses.
"Our financial position remains strong and affords us the ability to continue investing in the future of our business and to pursue an opportunistic growth strategy throughout market cycles," he added.
For the fiscal 2013 second quarter, MSC expects net sales to be between $563 million and $575 million.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
