Houston-based DXP Enterprises – No. 20 on Industrial Distribution's 2015 Big 50 List – reported its 2015 fourth quarter and full year fiscal results on Friday.
Like fellow Houston-based Big 50 distributors MRC Global and NOW Inc. earlier this week, DXP posted continued sales and profit declines as a result of a tough year in oil & gas.
DXP had Q4 sales of $278.7 million, down 27.1 percent from the same period a year earlier, and down 8.1 percent from Q3. The company took a net loss of $2.9 million, compared to losses of $88.1 million a year earlier and $88.1 million in Q3.
By business segment:
- Service Centers full year 2015 sales were $826.6 million, a decline of 16.3 percent from 2014, with a 9.5 percent operating income margin. Organic sales declined 18.7 percent.
- Q4 sales declined 6.0 percent sequentially with an 8.7 percent operating income margin.
- Innovative Pumping Solutions sales in 2015 were $254.8 million, a decline of 26.8 percent from 2014, with an 8.5 percent operating income margin.
- Q4 sales declined 15.1 percent sequentially with a 1.7 percent operating income margin.
- Supply Chain Services sales in 2015 were $165.6 million, up 1.0 percent from 2014 with an 8.6 percent operating margin.
- Q4 sales declined 7.6 percent sequentially, with an 8.6 percent operating income margin
For the full year 2015, DXP had sales of $1.25 billion, a 16.9 percent decrease from 2014. Organic sales decreased 18.4 percent. The company took a loss of $38.5 million in 2015, compared to a loss of $45.2 million in 2014.
"DXP collectively confronted a challenging macroeconomic environment as we faced an increasingly hard year for our oil and gas end markets, headwinds in foreign exchange and meager financial performance from DXP’s industrial markets, said David Little, DXP chairman and CEO. “As we look at our financial performance, the fourth quarter continued to reflect the challenges we saw all year as we witnessed a further step down in oil prices from the third quarter. The continuing decline of oil prices and volatility impacted our customers’ operating and capital spending decisions.
Little said DXP does not anticipate any meaningful recovery in its key end markets in 2016.
