Posted April 10, 2019

MSC sales up 7 percent

MSC Industrial Supply reported net sales of $823 million for the fiscal second quarter were up 7 percent compared to $769 million in the same period last year.

Net income of $68.4 million, or $1.24 per diluted share, compared to $117.5 million, or $2.06, in last year's second quarter.

"Conditions generally remained solid in the industrial economy in the fiscal second quarter of 2019, although we did see some moderation in February and this continued into March. Our core and national account customer growth in the quarter was in the high single digits, while Government sales were negative as expected," said Erik Gershwind, president and chief executive officer. "As a result, our total company growth rate was slightly below our expectations. The pricing environment remained stable in the fiscal second quarter, and we were pleased with the strong realization that we achieved on our mid-year price increase."

Gershwind added that, over the past few years, the company has repositioned MSC from a spot buy supplier to a mission critical partner on manufacturing plant floors. "More recently, we transformed our sales force and ramped hiring of sales talent. At the halfway point of the fiscal year, gross margins and operating expenses are as anticipated, but revenue growth has slightly underperformed our expectations. Looking forward, we are seeing positive signs from the implementation of our strategic plan, particularly from our sales force transformation, and are confident that it will deliver above market growth," Gershwind said.