Global Industrial Q3 sales decline 3.4%
Global Industrial Co. reported its third-quarter consolidated sales decreased 3.4% to $342.4 million compared to $354.6 million last year.
Additional highlights of the company's Q3 financials include:
- Consolidated gross margin increased to 34.0% compared to 32.8% last year.
- Consolidated operating income from continuing operations decreased 21.3% to $22.2 million compared to $28.2 million last year.
- Net income per diluted share from continuing operations decreased 18.5% to $0.44 compared to $0.54 last year.
Year to date, consolidated sales increased 6.2% to $1.0 billion compared to $954.2 million last year. Excluding Indoff, acquired on May 19, 2023, sales increased 0.7%. Also:
- Consolidated gross margin increased to 34.5% compared to 34.3% last year. Excluding Indoff, gross margin was 36.1%, an 80 basis point improvement over prior year.
- Consolidated operating income from continuing operations decreased 12.1% to $66.0 million compared to $75.1 million last year. Excluding Indoff, operating income was $61.0 million, a decrease of 14.7%.
- Net income per diluted share from continuing operations decreased 9.7% to $1.30 compared to $1.44 last year.
"Third quarter results reflect a weak demand environment and continued softness in our core small and medium business customer base," said Executive Chairman of the Board and Interim Chief Executive Officer Richard Leeds. "Our strategic account business delivered another quarter of strong growth and customer retention rates remain healthy."
"We have a terrific business and a talented team," he continued, "however, we are disappointed with recent results and have identified key areas for improvement. We are addressing this through a renewed focus on engaging and serving core customers, better communicating our value proposition to the market, and playing to our competitive strengths. As our efforts gain traction over the next few quarters, and the market environment improves, we will be in a stronger position to enhance our performance. We continue to maintain an exceptional balance sheet, and make further investments in our growth initiatives to drive long-term value for our stockholders."
At September 30, 2024, the company had total working capital of $180.9 million, cash and cash equivalents of $38.9 million, and excess availability under its credit facility of approximately $120.6 million. Operating cash flow provided by continuing operations in the quarter was $9.6 million.
INDUSTRIAL SUPPLY MAGAZINE
The September/October issue of Industrial Supply magazine features an in-depth cover story about Kurz Industrial Solutions. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Hockett, as well as interviews with numerous product and distribution industry experts.
