Lawson Products posts loss
Lawson Products said its net sales for the third quarter declined by 4.5% to $72.0 million versus $75.4 million for the third quarter of 2011.
Net loss for the quarter was $1.3 million, or 15 cents per diluted share, compared to a net loss $2.2 million, or 25 cents per diluted share, in the prior year period. The Chicago-based distributor of MRO products has posted a loss for five consecutive quarters.
Lawson blamed the sales decrease in part by an increase in the number of vacant sales territories from a year ago. Lawson plans to transition its independent agents located in the United States to employees during the first quarter of 2013.
Average daily sales declined 1.6% to $1.143 million in the third quarter of 2012 from $1.162 million in the second quarter of 2012 and from $1.178 million a year ago. "Although the number of vacant sales territories is up from a year ago, they remained fairly constant during the third quarter. Sales force productivity improved by 17.9% from a year ago and 2.6% from the second quarter," the company said in a prepared statement.
“Third quarter results show an improvement from where the company was just a quarter ago. In the coming quarters, we will renew our emphasis on improving sales by building upon productivity enhancements, utilizing our new ERP system as our foundation for growth and restoring our sales force to a more effective level,” said Michael G. DeCata, who joined Lawson as president and CEO on Oct. 1.
INDUSTRIAL SUPPLY MAGAZINE
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