Lawson Products sales and earnings slide
Lawson Products reported net sales for the first quarter decreased 5.2% to $72.0 million versus $76.0 million in 2012.
The decrease was mainly driven by reduced sales coverage due to an 11% decline in the average number of sales representatives in the first quarter of 2013 compared to the prior year period, the company said. The decrease was partially offset by an improvement in sales force productivity of 8.8% from a year ago. Lower government sales and one less selling day in the 2013 quarter also negatively impacted sales.
Average daily sales declined 3.7% to $1.143 million from $1.187 million in the first quarter of 2012; however, average daily sales increased 2.2% sequentially from the fourth quarter of 2012.
Net loss for the quarter was $3.2 million, or 37 cents per diluted share, compared to a net loss of $1.8 million, or 21 cents, in the prior year period.
“We continued to sharpen our focus on growing sales during the first quarter. An important element of that refocusing was the transition of our U.S. sales force from independent agents to employees, which became effective on January 1, 2013. We are encouraged by the improvement in sales productivity that has begun to appear in our results. We believe this transition, along with other initiatives, including our enhanced website and the opening of our new McCook distribution center, will support additional sales growth,” said Michael DeCata, president and chief executive officer.
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