Lawson Products sales decline 6.4%
Lawson Products said its net sales for the fourth quarter of 2012 were $68.2 million, a 6.4% decline compared to $72.9 million for the fourth quarter of 2011.
The company said the decrease was mainly driven by reduced territorial sales coverage. The average number of sales representatives was down by 14% in the fourth quarter of 2012 compared to the prior year period. Average daily sales declined 2.2% to $1.118 million from $1.143 million in the third quarter of 2012.
Net income for the quarter was $1.7 million, or 20 cents per diluted share, compared to a net loss $5.5 million, or 65 cents, in the prior year period.
“In the fourth quarter, we continued to realize benefits from our ongoing initiatives to enhance efficiencies and lower costs which led to an improvement in our operating performance on a year-over-year basis as well as from the third quarter. While there is still more to do, we have made significant progress consolidating our distribution network, relaunching our website and transitioning our sales force to employees,” said Michael DeCata, president and chief executive officer.
The company completed its transition from an independent agent model to an employee sales team in the United States and increased its emphasis on productivity per sales representative. It plans to add sales representatives in 2013. Lawson entered the year with approximately 760 sales representatives.
During the first half of 2013, the company plans to move operations from its Addison, Illinois, distribution center to its new packaging and distribution center in McCook, Illinois.
“In 2013, we will focus on growing sales as we look to develop under-served territories and increase the productivity of our sales force. We have added many tools to enhance the customer experience and help our sales team become more productive," DeCata said.
INDUSTRIAL SUPPLY MAGAZINE
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