Posted July 27, 2017

Lawson Products sales increase by 8.2 percent

Lawson Products said its second quarter sales increased 8.2 percent to $75.0 million, compared to $69.3 million a year ago.

Average daily sales were $1.172 million compared to $1.084 million in the previous year quarter. Sales were positively impacted by increased productivity of sales representatives, the effect of acquisitions completed in 2016 and an improving MRO marketplace. Excluding 2016 acquisitions, net sales grew 6.9 percent for the quarter. Year to date sales were up 7.6% over the prior year.

Net income for the quarter was $7.3 million, or 80 cents per diluted share, including 60 per diluted share from the gain on sale of real estate. This compares to net income of $0.2 million, or 2 cents per diluted share, for the same period a year ago.

“Average daily sales increased 8.2% year-over-year and 6.9% on an organic basis. Over the past several quarters, we have seen an uptick in our average daily sales and productivity of our reps. There were sales increases across all customer categories including regional, large national, Kent Automotive and government. Growth in our large national accounts was driven primarily by our success in converting additional locations and customer account expansion. Despite the shift in customer mix, our gross margins remained above 60% generating significant growth in gross margin dollars," said Michael DeCata, president and chief executive officer.