IDG reports $537.5 million in 2007 sales

Industrial Distribution staff -- Industrial Distribution, 2/28/2008 6:33:00 AM

The Industrial Distribution Group had total sales of $537.5 million in 2007, down from $547.9 million in 2006.

Net income for 2007 was $4.1 million, down from $6.8 million or in the previous year.

For the fourth quarter 2007, IDG had revenues of $135.5 million, down from $131.6 million for Q4 in 2006.

The Atlanta based distributor’s Flexible Procurement Solutions services accounted for 63.4 percent of total revenues in the fourth quarter, compared to 61.2 percent in the fourth quarter a year ago.

For 2007 overall, total FPS revenues were $332 million, an improvement of $6.7 million from the year before.

However, each FPS location averaged an increase in sales of 12.6 percent in 2007.

"We made solid progress on our initiatives during 2007, building on the processes and operational foundation and achieving marked improvement in many areas," Charles Lingenfelter, IDG’s president and CEO said.

“Despite these great improvements, we have more that needs to be done, can be done and will be done to achieve the full potential we believe is inherent in our business.”

On Feb. 20, IDG signed an agreement to be acquired by an affiliate of Platinum Equity Advisors LLC. The agreement has yet to be voted on.

During a conference call Feb. 28 to discuss the 2007 earnings, Lingenfelter could not say a great deal, pending the approval vote. But he did point out that Platinum already owns two distributorships, Strategic Distribution Inc. and Ryerson Inc. that share some similarities with IDG.

"We believe there are natural fits and potential synergies within Platinum Equity, and we look forward to discussing those with Platinum and the management teams of their individual businesses," Lingerfelter said.

 
IDG ranked 19th on INDUSTRIAL DISTRIBUTION’s 2007 Big 50 list of distributors, with 2006 sales of $547.9 million.