Lawson Products sales decline 5.2 percent
The acquisition of Partsmaster in the third quarter helped Lawson Products recover from losses experienced early in the year.
Net sales were $351.6 million in 2020 compared to $370.8 million in 2019, a decline of 5.2 percent.
Sales were negatively impacted by the COVID-19 pandemic, partially offset by the acquisition of Partsmaster, which contributed $22.6 million in sales during 2020.
Net income for 2020 was $15.1 million or $1.62 per diluted share compared to $7.2 million, or, 77 cents, in 2019.
In the fourth quarter, net sales increased 10.8 percent to $98.1 million compared to $88.6 million in the fourth quarter of 2019 primarily due to the acquisition of Partsmaster in the third quarter of 2020. Partsmaster contributed $17.2 million of sales in the quarter. Excluding Partsmaster, sales declined 8.6 percent compared to the year ago quarter reflecting the economic effects of COVID-19.
Net income for the fourth quarter was $0.2 million, or 2 cents per diluted share, compared to a net loss of $3.0 million, or a loss of 34 cents per diluted share, in the fourth quarter of 2019.
“Reflecting on last year’s results, I am encouraged by our performance during the most difficult business environment we have ever encountered. We were able to ensure the safety of our team while providing outstanding service to our customers at the standards they have come to expect," said Michael DeCata, president and chief executive officer.
He added that cost structure adjustments made during the pandemic have protected Lawson's profitability and cash flows. "We have been able to recover organic daily sales by 38 percent over April’s levels, improve operating margins, and integrate a significant acquisition in an uncertain business environment. With continued focus on our cost structure and almost 100 more sales reps than in 2019, we expect to continue to deliver improving results and execute on our ongoing growth strategy,” DeCata said.
INDUSTRIAL SUPPLY MAGAZINE
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