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Posted October 23, 2014

Lawson Products sales up 8.6 percent

Lawson Products reported net sales for the third quarter of 2014 increased by 8.6% to $74.1 million compared to the third quarter of 2013.


Average daily sales increased 8.6% to $1.158 million in the recent quarter from $1.066 million a year earlier, and also increased 2.8% over $1.126 million in the second quarter of 2014. The sales increase was driven by a 13% year-over-year sales growth in strategic accounts and 19% growth from the Kent Automotive division over the prior year. The increase was also driven by improved productivity of existing sales reps in the period and sales reps hired within the past year as they developed their territories, the company said.

Net income was $0.5 million, or 5 cents per diluted share, as compared to net income of $0.6 million, or 7 cents per diluted share, for the same period a year ago.

During the quarter, the company paid off the remaining $16.1 million balance of its outstanding bank loan and was debt free on Sept. 30.

"Our third quarter financial and operating performance demonstrates the value of recent infrastructure investments,” said Michael DeCata, president and chief executive officer. “The improved productivity from our existing sales team and the growth in the number of new sales representatives are helping top-line sales while continued improvements in operational efficiencies are strengthening our customer service and helping us deliver stronger bottom line results.

Lawson has grown its sales force by 88 direct sales reps in the first nine months of 2014 and remains on pace to grow the team by approximately 15% this year. "Our focus remains on adding quality sales representatives in strategic geographical areas to continue to improve coverage of our targeted marketplace,” DeCata added.

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