Houston-based DXP Enterprises reported its 2019 third quarter financial results on Wednesday, showing solid year-over-year sales gains.
The company posted Q3 total sales of $327.2 million, which was up 6.2 percent year-over-year, though decelerated from Q2's 7.1 percent gain and down 1.8 percent sequentially from Q2. Third quarter operating profit of $21.7 million improved from $16.8 million of a year earlier, while total Q3 profit of $13.2 million improved from $8.4 million of a year earlier.
By DXP business segment in Q3:
- Service Centers sales of $193.7 million increased 3.2 percent year-over-year with, a 12.9 percent operating income margin.
- Innovative Pumping Solutions sales of $82.2 million increased of 7.2 percent year-over-year, with a 12.3 percent operating income margin.
- Supply Chain Services sales of $51.3 million increased 17.6 percent year-over-year, with a 6.1 percent operating income margin.
"We are pleased with our results, which reflect continued execution of our strategy and a focus on being customer-driven experts in MROP solutions," DXP chairman and CEO David Little said in the company's earnings release. "Underlying demand in our end markets has wavered, but we continue to take market share and focus on execution. ... Overall, we maintained margin performance, continued to improve cash flow and executed in a changing end market backdrop. We will remain focused on growing the top-line and bottom-line as we move into fiscal 2020."