MSC's Q4 sales fall 21%

Full-year results are down 16%, but distributor says it sees encouraging signs ahead
Victoria Fraza Kickham -- Industrial Distribution, 10/21/2009 10:18:18 AM

MRO distributor MSC Industrial Direct posted lower sales and earnings for the fourth quarter and fiscal year ended August 29, but says it sees encouraging signs in the marketplace as fiscal 2010 gets underway.

In its fiscal fourth quarter, MSC's sales fell 21 percent to $354.1 million, compared with $448.6 million in the prior-year period. Net income fell 49 percent to $26 million.

For the full year, sales fell 16 percent to $1.49 billion, compared with $1.78 billion in fiscal 2008. Net income for the year fell 36 percent to $125.1 million.

MSC's president and CEO David Sandler said the company ended 2009 with a solid performance in the fourth quarter and pointed to the opportunities ahead as the economy improves.

"While our visibility remains limited, we are seeing some encouraging signs in the marketplace," he said in statement announcing the results. "We look at the eventual economic recovery as a significant opportunity for MSC and will continue to focus our investment program on the opportunities that we believe will produce the greatest returns. As in the past, we will prudently balance our level of investment spending to maintain what we believe to be the right mix between short-term profitability and achieving our long-term growth objectives. Overall, we view this time as an extraordinary opportunity to gain market share, and we intend to take advantage of it."

Kevin Brown http://www.stardustspillproducts.com/