IDG’s 1Q sales slip 6 percent
Industrial Distribution staff -- Industrial Distribution, 5/16/2008 6:26:00 AM
Industrial Distribution Group Inc. posted first quarter sales of $127.3 million, down 6.2 percent compared with $135.1 million during the same period last year.Net earnings for the Atlanta-based MRO distributor slipped 6 percent to $920,000, compared with $1.5 million during the first quarter of 2007.
IDG said the results included a $600,000 charge related to its pending $134 million sale to private equity firm Luther King Capital Management.
“During the first quarter, we experienced the effects of a generally weakening economy,” president and CEO Charles Lingenfelter said. “This general economic weakness adds to the industry-specific challenges we've been experiencing in the domestic automotive industry, including suppliers to the automotive and truck manufacturers and in the recreational vehicle and manufactured housing markets.”
Sales for IDG’s Flexible Procurement System vendor-managed inventory division fell 3 percent to $78.6 million (nearly 62 percent of total quarterly revenues) during the quarter, as new contracts failed to offset the loss of expiring contracts IDG didn’t seek to renew “because of unfavorable pricing,” the company said in a statement.
General MRO sales declined 10 percent to $48.6 million, which IDG said was a reflection of the soft economy and lower production levels for many of its customers.
IDG ranked 19th on INDUSTRIAL DISTRIBUTION’s 2007 Big 50 list of distributors, with 2006 sales of $547.9 million.
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