Systemax, which does business through its industrial products group led by the Global Industrial brand, reported its 2019 fourth quarter and full-year financial results on Thursday.
The figures showed that Systemax’ industrial sales grew slightly in Q4 year-over-year (YoY), considerably slower than the company’s full-year sales growth.
Systemax posted Q4 total sales of $222 million, up 2.1 percent YoY, with average daily sales up by that same amount. Operating profit of $14.4 million grew from $13.9 million a year earlier as operating margin ticked up 0.1 percentage points to 6.5 percent and gross margin grew 0.3 percentage points. The company’s Q4 total profit of $11.4 million declined from $12.3 million a year earlier.
For the full year, Systemax’ 2019 total sales of $947 million increased 5.6 percent over 2018, with average daily sales up 5.7 percent. Operating profit of $66.1 million grew 7.1 percent, while total profit of $50 million was essentially flat.
Barry Litwin, Chief Executive Officer, said, "In 2019 we made significant progress in the execution of our customer centric strategy, and made investments to support and drive our future growth,” said Barry Litwin, Systemax CEO. “In the fourth quarter, our revenue showed modest growth, in line with the market, while we delivered a double-digit improvement in non-GAAP operating income. This performance highlights our operating leverage and efforts to proactively manage the business through the current competitive market and challenging tariff and trade environment."
Systemax’ Global Industrial brand was No. 20 on Industrial Distribution’s 2019 Big 50 List. Global Industrial’s website states that it has more than 1.7 million products in 21 industrial and commercial categories. Systemax’ other industrial brands include Global Industrial Canada/Avenue, Nexel, IndustrialSupplies.com and PFI.
"As we begin 2020, we will accelerate our strategy as we invest in the growth of our sales force, digital marketing, and product and category expansion,” Litwin said. “Our expanded distribution network and self-service digital tools will continue to improve efficiency and enhance our customer experience. These investments, combined with our continuous improvement culture, will further strengthen our platform, enhance our competitive position and drive our long-term performance."
