DXP Makes Continued Sequential Sales Gains In Q2

The company had a continued small year-over-year sales decline, though smaller than in Q1, while it posted its second straight sequential sales increase after not having such an increase since Q1 2014.

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Houston-based DXP Enterprises — No. 19 on Industrial Distribution's Big 50 List — reported its 2017 second quarter and financial results on Tuesday, led by a continued small year-over-year decline in sales, while they improved sequentially.

The company posted Q2 sales of $250.7 million, down 2.2 percent year-over-year, and up 5.1 percent from Q1. It marked the second straight period of sequential sales growth for DXP, which previously hadn't had sequential growth since Q1 of 2014.

Adjusting for DXP's 2016 sale of fastener master distributor Vertex, Q2 sales increased 0.9 percent from a year earlier.

DXP's total Q2 profit of $4.1 million was down from $5.1 million a year earlier.

By business segment in Q2:

  • Service Centers sales of $164.7 million, up 1.8 percent year-over-year and up 10.8 percent from Q1. Adjusting for the Vertex sale, revenue increased 7.0 percent. Operating margin increased 366 base points year-over-year, and 221 base points from Q1, to 11.2 percent.
  • Innovative Pumping Solutions sales of $44.5 million decreased 18.2 percent year-over-year, and 9.4 percent from Q1. Operating margin decreased 320 points from Q1 to 4.0 percent.
  • Supply Chain Services sales of $41.5 million increased 3.6 year-over-year, and 1.8 percent from Q1. Operating margin was 9.0 percent.
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