Houston-based NOW Inc. — No. 11 on Industrial Distribution's 2015 Big 50 List — on Wednesday shared its 2016 first quarter fiscal results, led by continued substantial year-over-year sales and profit decreases amid the oil and gas downturn.
The company, which does business as DistributionNOW, posted Q1 sales of $548 million, a 36.5 percent decrease over a year earlier, and down 14.9 percent from Q4. The company took a loss of $63 million in Q1, which followed a $249 million loss in Q4. DNOW had a $10 million loss in Q1 2015.
The company's Q1 U.S. sales were down 41 percent year-over-year, and down 18 percent from Q4. Excluding acquisitions, sales declined 49 percent YOY and 21 percent from Q4. The company noted that oil rig counts declined 60 percent in Q1 year-over-year and declined 26 percent from Q4.
DNOW's Canada sales declined 46 percent YOY and declined 20 percent from Q4, while International sales were down 12 percent YOY and down 3 percent from Q4.
"Market conditions entering 2016 remain difficult, as reflected in the continuing decline in North American rig count," said Robert Workman, president and CEO of NOW Inc. "In the current environment, we continue to focus on the fundamentals of our business: maximizing cash generation by improving collections, monetizing inventory, curbing excess costs and integrating recent acquisitions, while working to enhance our services and solutions for our existing and prospective customers."
On April 28, DNOW announced the acquisition of Casper, WY-based Power Service Inc.
"While the timing of a market recovery remains uncertain, we will continue to focus on the long-term future of our business and position ourselves for success and growth when the market recovers," Workman added.