DXP Enterprises reports 3Q loss
DXP Enterprises said its third quarter sales were $303.1 million, a decrease of 21.7 percent from $387.1 million reported in the third quarter of 2014.
Organic sales decreased 22.3 percent from 2014. Acquisitions positively impacted sales by $2.2 million.
The company reported a loss of $52.7 million for the quarter, or $3.64 per share, compared to net income of $16.9 million, or $1.10, in the same period last year.
“DXP’s business segments performed well in the midst of a challenging market. Total DXP’s sales declined 6 percent sequentially and 22 percent year-over-year. Continuing to outperform the 20 percent sequential and 56.6 percent decline year-over-year for the North American rig count," said David R. Little, chairman and CEO. "During the third quarter we continued to experience uphill sales challenges across our major end markets including upstream drilling, development and completion; upstream production; and mining markets. That being said, we remain focused on managing costs, improving performance and investing for the eventual upturn."
During the quarter, DXP incurred a total of $12.3 million of one-time payments associated with the final working capital dispute resolution associated with the B27 transaction and legal fees associated with ITT Goulds and the sellers of B27.
DXP termined its remaining distributor agreements with ITT Goulds that was announced in late September. The company closed on its acquisition of B27 in 2014. B27 is a global supplier of sophisticated pump and integrated flow control solutions serving the oil & gas, power generation, air quality and other industrial markets.
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