MSC Industrial sales up 4.4% for year
MSC Industrial Supply reported net sales of $727.4 million for its fiscal fourth quarter, a 0.1% change from $726.6 million reported in last year's fourth quarter.
Net income of $59.0 million declined 6% from $62.8 million in the fourth quarter of fiscal 2014. Earnings per share of 96 cents compared to earnings of $1.02 in last year's fourth quarter.
For the full year, sales of $2.9 billion increased by 4.4% from $2.8 billion in the previous year, while net income fell by 2% to $234.1 million from $236.1 million last year. Adjusted earnings per share of $3.79 compared to EPS of $3.93 in fiscal 2014.
"Our flat fourth quarter sales reflected strong execution in the face of a difficult and deteriorating environment. The prolonged impact of the drop in oil prices, the strong US dollar and foreign exchange headwinds are all negatively impacting broader manufacturing activity," said Erik Gershwind, president and chief executive officer.
Rustom Jilla, executive vice president and chief financial officer, added, "Fourth quarter adjusted EPS was above the midpoint of our guidance reflecting continued gross margin stabilization and expense management. Countermeasures such as discount optimization, various freight initiatives, and supplier cost reductions offset most of the headwinds from customer mix and soft pricing. We will continue to implement productivity initiatives and reduce expenses even after investing for growth."
Gershwind concluded, "As we move into 2016, we remain focused on outgrowing the market and managing those levers within our control. We have historically made our greatest strides during economic slowdowns and delivered disproportionate revenue growth and earnings leverage in subsequent periods. Looking forward, our infrastructure investments have positioned us well to leverage future growth."
Based on current market conditions, MSC expects net sales for the first quarter of fiscal 2016 to be between $702 million and $714 million. At the midpoint, average daily sales are expected to decline roughly 3.0%. The company expects diluted earnings per share for the fiscal first quarter 2016 to be between 85 cents and 89 cents.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
