DXP Enterprises expects sales decline of up to 24.8 percent
DXP Enterprises released preliminary unaudited financial information for its fiscal quarter, saying that the company expects sales to decline by up to 24.8 percent.
Sales are anticipated to be between $228.0 million and $231.0 million for the third quarter of 2016, compared to $256.2 million for the second quarter, a decrease between 9.8 percent to 11.0 percent. Compared to sales for the third quarter of 2015 of $303.1 million, this represents a decrease of between 23.8 percent and 24.8 percent. The above comparisons include sales from Vertex, which was sold on Oct. 3, 2016.
Net income (loss) is anticipated to be between $(500) thousand to $500 thousand for the third quarter of 2016, compared to $5.1 million for the second quarter of 2016 and $(52.4) million in the third quarter of 2015, which included a $58.9 million non-cash impairment charge.
DXP expects to release its full fiscal quarter results on Nov. 7, 2016.
The company blamed the sales decline in the third quarter primarily on softness in July sales.
David R. Little, chairman and CEO remarked, “Our third quarter performance reflects a departure from our recent trends, which was primarily associated with lagging sales during the month of July. August and September sales were more in line with average year-to-date monthly performance. That said, we do expect seasonality which can be exacerbated by the upcoming holiday season, the elections, seasonal customer facility shutdowns as well as the recent sale of Vertex. We are pleased with our cost containment measures year-to-date.”