DXP Enterprises sales fall 3 percent
DXP Enterprises reported a sales decline of 3.3 percent to $301.0 million in the first quarter, compared to $311.2 million for the first quarter of 2019.
Net income of $5.7 million, or 31 cents per diluted share, fell from $7.2 million, or 40 cents, in the same period last year.
By business segment, sales were $182.6 million for Service Centers, $70.0 million for Innovative Pumping Solutions and $48.4 million for Supply Chain Services.
In response to the coronavirus, David R. Little, chairman and CEO, said the company has been working in small teams or through work rotations. "We did this so that if we needed to quarantine one team, we could still continue to serve our customers. Additionally, we had our facilities deploy social distancing in the workplace, frequent hand washing and sanitizing, temperature testing, quarantines, and remote work habits in the situations and circumstances where we could," he said.
Cost cutting moves taken during the quarter include a temporary hiring freeze, travel restrictions and a wage freeze. The company also expanded its asset based loan facility from $85 million to $135 million.
“DXP is well-positioned to support its customers, employees and suppliers. We will continue to take the steps to manage our business by tightening our expenses and capital spending and actively managing our balance sheet. We believe that we have ample flexibility to navigate through the uncertain times ahead," said Kent Yee, CFO.
INDUSTRIAL SUPPLY MAGAZINE
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