MSC's sales down 11%

Distributor points to strong cash generation, sequential sales growth as evidence of solid performance in first quarter


Victoria Fraza Kickham -- Industrial Distribution, 1/8/2010 1:33:04 PM

Industrial MRO products distributor MSC called its first-quarter results "solid" despite the ongoing difficult business climate. The Melville, N.Y.-based company reported lower sales and earnings compared to the first quarter of 2009, but pointed to strong cash generation performance and sequential average daily sales growth as positive achievements in a challenging market.
MSC's sales fell 11 percent for the quarter to $384.8 million, compared with $433 million a year ago. The distributor's operating income for the quarter was $51 million, compared with $74.4 million a year ago, while net income was $31.4 million compared with $45.1 million in the prior-year period. Earnings per share fell 31 percent to 50 cents, compared to 72 cents a share in the first quarter of 2009.
"The fiscal first quarter produced solid results for MSC," president and CEO David Sandler said in a statement announcing the results. "Despite operating in a business environment that remained difficult, we generated results in line with our expectations and continued to take market share. ..."
MSC posted sequential average daily sales growth of 12 percent from fiscal fourth-quarter levels, and generated $41.7 million in free cash during the period. Looking ahead, MSC said it expects second-quarter earnings per share to be between 43 cents and 47 cents on net sales of between $384 million and $396 million.