Posted February 19, 2020

NOW Inc. sales decline 16.4 percent

NOW Inc. reported sales of $639 million for the fourth quarter, a decrease of 16.4 percent from $764 million in the same period a year ago.

A net loss of $139 million, or $1.27 per diluted share, compared to net income of $16 million, or income of 14 cents per share, in the fourth quarter of 2018.

For the full year, sales of $2.9 billion was down 5.6 percent from $3.1 billion in 2018. A net loss of $97 million, or a loss of 89 cents per share, compared to net income of $52 million, or 47 cents per share, the previous year.

“The North American market slowdown and reduction in customer spending were steeper than expected as the year ended. In response to market conditions, through today, we consolidated, closed or sold 40 locations since the beginning of 2019, and we have reduced headcount by 600 since mid-2019. In addition, we are deploying initiatives to improve our operating performance and bolster our already enviable balance sheet," said Dick Alario, Interim CEO of NOW Inc. 

"We finished the year with zero debt and approximately $600 million in total liquidity. We also generated significant cash flow and improved our market position in 2019. Early in 2020, our team is focused on further improving our cost structure to deliver productivity that is better than historical results and investing in technology to drive measurable efficiencies in both our field operations and corporate support functions, while at the same time capturing profit-enhancing market share,” he said.