Lawson Products 2Q sales and income decline
Lawson Products reported net sales for the second quarter of 2016 were $69.3 million versus $70.7 million a year ago.
Sales were negatively impacted by the continued slow-down in the MRO marketplace, ongoing weak demand from customers in the oil and gas industry and a decline in the Canadian dollar from a year ago.
Net income for the quarter was $0.2 million, or 2 cents per diluted share, compared $2.9 million, or 33 cents, for the same period a year ago.
“While sales were softer than we would have liked for the quarter, our results were consistent with slower industrial activity impacting the MRO marketplace," said Michael DeCata, president and chief executive officer. “We accelerated investments in our organization primarily through adding new sales representatives, investing in our veteran reps and pursuing acquisitions that fit our business model. As expected, the rapid growth in the sales force has a short-term negative impact on our operating income; it generally takes two to three years for a newly hired sales rep to build a strong book of business. Increasing our sales force and making the right acquisitions will provide us opportunities to expand and increase our geographic coverage in the large, fragmented MRO marketplace.
The company said it added 60 sales representatives, bringing the total sales force to more than 1,000.