Posted October 26, 2017

Lawson Products sales climb 7.8 percent

Lawson Products recorded net sales of $75.7 million for the third quarter of 2017 compared to $70.2 million in 2016, a gain of 7.8 percent.

Average daily sales grew 9.5 percent to $1.201 million compared to $1.097 million in the previous year quarter. Sales were positively impacted by the 11 percent increase in sales rep productivity, the effect of acquisitions completed in 2016 and the continuing improvement in the MRO marketplace. Previous acquisitions contributed 1 percent of the sales increase for the quarter. 

Net income for the third quarter of 2017 was $1.3 million, or 14 cents per diluted share compared to net income of $1.8 million, or 20 cents, for the same period a year ago.

"We are very pleased with our 68 percent improvement in adjusted operating income on a 9.5% increase in average daily sales. The consistent improvement in our financial performance is attributable to the increased productivity of the sales force, recent acquisitions, and the improving MRO marketplace. We continue to see strong increases with our large national customers and regional business allowing us to leverage our existing infrastructure," said Michael DeCata, president and chief executive officer.

DeCata added that Lawson recently announced its fifth and largest acquisition in 24 months, adding $34.0 million to consolidated sales. With the acquisition of The Bolt Supply House Ltd., headquartered in Calgary, Alberta, Lawson gained 27 sales representatives, 13 branch locations, and a 43,000 square-foot distribution center in Calgary.