Global Industrial Co. reports modest sales growth
Global Industrial Co. said its second quarter consolidated sales increased 2.3% to $325.8 million compared to $318.5 million last year. Excluding Indoff, acquired on May 19, 2023, sales declined 5.2%.
Consolidated gross margin declined to 34.7% compared to 35.5% last year. Excluding Indoff, gross margin was 35.7%, a 20 basis point improvement to prior year.
Consolidated operating income from continuing operations decreased 4.6% to $29.1 million compared to $30.5 million last year. Excluding Indoff, operating income was $28.0 million, a decrease of 8.2%.
Year to Date Q2 2023 Financial Summary:
- Consolidated sales decreased 1.2% to $599.6 million compared to $607.1 million last year. Excluding Indoff, sales declined 5.2% and 4.5% on an average daily sales basis.
- Consolidated gross margin declined to 35.2% compared to 36.4% last year. Excluding Indoff, gross margin was 35.8%.
- Consolidated operating income from continuing operations decreased 21.8% to $46.9 million compared to $60.0 million last year. Excluding Indoff, operating income was $45.8 million, a decrease of 23.7%.
- Net income per diluted share from continuing operations decreased 21.6% to $0.91 compared to $1.16 last year.
Chief Executive Officer Barry Litwin said, "We had a very productive second quarter as we continued to execute on our ACE strategy, made further investments in growth initiatives and completed the strategic acquisition of Indoff in late May. Total revenue benefited from the inclusion of Indoff, while organic performance reflects price deflation, and a continuation of the cautious purchasing behavior within our small and medium business customer base's manufacturing sector. Gross margin remained solid as we delivered modest improvement organically, offset by Indoff's lower margin profile. Given improvements in our online shopping experience, web growth expanded throughout the quarter. Customer acquisition and retention are healthy, and we ended the quarter with modest volume trend improvement."
"We remain focused on strengthening our business, driving operational excellence, and delivering an exceptional experience and value to our customers. We are making investments across our web and direct sales channels to enhance our competitive position and long-term growth profile. We believe we are well positioned to drive performance as customer sentiment improves. With strong cash flows and a solid balance sheet, we are confident in the resources we have to navigate current market conditions and execute on our organic and strategic growth opportunities."
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
