Systemax Q1 sales climb 10.5 percent
Systemax reported first-quarter sales increased 10.5 percent to $251.1 million compared to $227.3 million last year.
The increase marked the company's third consecutive quarter of double-digit growth.
Net income of $5.5 million, or 14 cents per diluted share, declined from $8.3 million, or 21 cents, in the same period last year.
"Sales reflect a continued recovery in core categories, which finished the quarter with a strong March, and solid demand for our Global Industrial branded products," said Barry Litwin, chief executive officer. "We are pleased with core category performance, and given the signs of an improving economy, we remain optimistic about the demand environment. However, we were disappointed with our freight margin and resulting overall profitability which reflects the impact of the February winter storms, increased costs related to the transition to a new third party logistics provider, inflationary freight pressures, and a write down of personal protective equipment inventory."
Litwin said the company is transitioning to a new third party logistics provider to allow for better long-term cost management. "In addition, we are advancing our digital transformation to further capitalize on the huge shift in business to business e-commerce adoption, and our leading e-commerce capabilities and functionality continue to improve."
He added that several initiatives underway will highlight the product knowledge, expertise, and solutions the company provides, and expand its line of Global Industrial branded products.
"With a strong platform and powerful customer growth model we believe we are well positioned to enhance our position as an indispensable business partner to our customers," he said.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
