DXP Enterprises Q1 sales plummet
DXP Enterprises reported sales of $253.6 million for the first quarter of 2016, compared to $341.6 million for the first quarter of 2015, a decrease of 25.8 percent.
The company had a net loss of $5.1 million, or 35 cents per share, compared to income of $9.6 million, or a gain of 63 cents per share, in the same period last year.
Service Centers revenue for the first quarter was $167.5 million, a decline of 10.6 percent sequentially with a 5.7 percent operating income margin.
Innovative Pumping Solutions revenue for the first quarter was $47.4 million, a decline of 9.1 sequentially with a 0.6 percent operating income margin.
Supply Chain Services revenue for the first quarter was $38.6 million, a decline of 1.2 percent sequentially with a 9.0 percent operating margin or 112 basis points improvement over the first quarter of 2015.
"DXP’s industrial end markets, which is 60 percent of our business today, appears to have bottomed and shows signs of positive upward movement," said David R. Little, chairman and CEO. "Oil and gas, which today is 40 percent of DXP, is attempting to find a bottom as declines are decreasing."
"In such a prolonged and difficult environment, we are taking substantial steps to reorganize DXP without hurting sales efforts and our ability to capitalize on the eventual turnaround of the oil and gas market. Should conditions improve, the combination of strong early feedback on DXP’s pump offering, a gradual return of project work and continued improvements to our cost structure will result in strong earnings growth. We will maintain strong focus on those areas that we control, continue to right size and align our businesses and optimize cost structures. We remain steadfast in our ability to manage through the current cycle, maintaining our customer focus while creating long-term stakeholder value.”