Global Industrial reports 5.6% decrease in Q4 consolidated sales
Global Industrial Company, a value-added national distributor of industrial equipment and supplies, reported fourth quarter sales of $302.3 million.
Consolidated sales decreased 5.6% to $302.3 million in U.S. dollars compared to $320.1 million last year. Consolidated gross margin was 33.8% consistent with last year. Consolidated operating income from continuing operations decreased 32.2% to $14.5 million compared to $21.4 million last year.
Year Ended 2024 Financial Summary:
Consolidated sales increased 3.3% to $1.32 billion in U.S. dollars compared to $1.27 billion last year. Excluding Indoff, sales declined 0.6% as compared to the year ago period and 0.5% on an average daily sales basis.
Consolidated gross margin increased to 34.3% compared to 34.2% last year. Excluding Indoff, gross margin was 36.0% compared to 35.5% last year.
Consolidated operating income from continuing operations decreased 16.6% to $80.5 million compared to $96.5 million last year. Excluding Indoff, operating income was $73.9 million compared to 90.8 million, a decrease of 18.6%.
Net income per diluted share from continuing operations decreased 14.7% to $1.57 compared to $1.84 last year.
"In 2024, we generated revenue of $1.3 billion, an improvement of 3.3%, driven by the acquisition of Indoff in 2023, said Executive Chairman Richard Leeds. "We delivered top line growth in the first half of 2024 but results softened as we moved through the year with continued weakness in our core small and medium-sized businesses customer base. We remain very pleased with our gross margin performance and had good cash flow generation during the year, ending 2024 with more than $44 million in cash."
"We continued to execute on our customer centric strategy and made measurable progress elevating the customer experience across the business. This is highlighted in our strong retention rates, enhanced customer satisfaction, and significant improvement in quality metrics across our supply chain. While we are not satisfied with our financial performance, I believe we have the right strategy in place as we continue to sharpen our execution on serving the needs of our customers and highlight the value we bring to market through our core product offerings, Global Industrial Exclusive BrandsTM and extensive product knowledge."
CEO Anesa Chaibi said "As we drive operational excellence and enhance the customer experience, we will further strengthen connections with our customers and improve our ability to capture market share. With an exceptional balance sheet, we remain well-positioned to continue to invest in our growth, evaluate strategic opportunities, and drive our long-term performance."
INDUSTRIAL SUPPLY MAGAZINE
The January/February issue of Industrial Supply magazine features an in-depth cover story about MSC Industrial Supply. 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.
