United Stationers reports 3% Q4 sales gain
United Stationers reported net sales for the fourth quarter of 2009 were $1.2 billion, up 3.3% versus 2008.
During the quarter, sales in the technology and janitorial/breakroom product categories grew by 12% and 10%, respectively, while the office products category was up 2%. Continued economic weakness negatively affected sales in the office furniture and industrial supplies categories, which fell 23% and 18%, respectively.
Gross margin for the latest quarter was $178.0 million, or 15.1% of sales, compared with $176.5 million, or 15.4% of sales in the prior year. Gross margin was negatively affected by a significant reduction in product cost inflation and a lower margin product mix, while sales growth led to higher inventory purchases and increased supplier allowances. Margins were also helped by cost containment actions targeting freight and distribution center lease expenses.
Diluted earnings per share were $1.33 for 2009 versus 95 cents in the prior year.
Net sales for 2009 were $4.7 billion, compared with $5.0 billion in 2008.
"Business conditions remain mixed as evidenced by continued high U.S. unemployment, recovering industrial production trends and an improving GDP. As a result, we remain cautious as we enter 2010. First quarter revenues to date are up approximately 5%, reflecting easier comparisons and progress on growth initiatives. However, we do not yet see evidence of an improved product mix," said Richard W. Gochnauer, president and CEO.
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.
