NOW Inc. Takes $249M Q4 Loss As Sales Sink 36% YOY

Declines in drilling activity and rig count in North America and abroad hurt the company, which posted a $502 million net loss for the full year 2015.

Id 13171 D Nowe

Houston-based NOW Inc., which does business as DistributionNOW, reported its 2015 fourth quarter and full year financial results on Tuesday.

The company – No. 11 on Industrial Distribution's 2015 Big 50 List – posted Q4 sales of $644 million, down 36 percent from the same period a year earlier. DNOW took a loss of $249 million in Q4, compared to a profit of $16 million a year earlier. The company's Q3 sales were $753 million, with a net loss of $22 million.

"During the fourth quarter we continued to see unprecedented declines in drilling activity in North America and abroad. As long as rig count declines and drilled but uncompleted wells accumulate, our performance will be negatively impacted," said Robert Workman, DNOW president and CEO.

Workman added that the company reduced receivables by $366 million in Q4, and reduced inventory by $256 million.

DNOW U.S. sales of $433 million in Q4 were down 36 percent year-over-year, down 45 percent organically, and down 13 percent overall from Q3. Canada Q4 sales of $79 million were down 56 percent YOY, and down 16 percent from Q3. International Q4 sales of $132 million were down 10 percent YOY, and down 19 percent from Q3.

For the full year 2015, DNOW sales of $3 billion were a 26.7 percent decrease from 2014. The company had a net loss of $502 million, compared to 2014's profit of $116 million.

More in Earnings