DXP Enterprises sales jump but earnings fall
DXP Enterprises reported first quarter sales were $348.5 million, an increase of 20.1%.
Organic sales increased 1.7%, while acquisitions positively impacted sales by $53.4 million.
Net income of $11.6 million, or 75 cents per share, was down 12.2% compared to $13.2 million, or 87 cents, for the first quarter of 2013.
“We are surprised by certain elements of DXP’s business and not satisfied with our overall performance. We are encouraged by the resilience and strength of our core DXP and believe we have some work ahead of us regarding some of our recent acquisitions," said David R. Little, chairman and chief executive officer.
He said the quarter’s results highlight the continued tepid growth in the U.S. and the slight decline in Canada. "During the first quarter, we experienced strong organic growth within Innovative Pumping Solutions, organic sales were essentially flat within our Service Centers and we had a modest decline within Supply Chain Services. Today’s environment presents unique challenges around DXP’s growth model. We will invest where returns and business strategies make sense with a renewed eye on cost, efficiencies and business discipline," Little said.”
During the quarter, DXP acquired Machinery Tooling & Supply, a distributor of cuttings tools, abrasives, coolants, machine shop and industrial and safety supplies headquartered in Schaumburg, Illinois.
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