Industrial products and MRO supplies distributor Global Industrial Company, which rebranded from Systemax earlier this year, reported its 2021 third quarter earnings results on Nov. 2, showing a slight dip in year-over-year sales, while profits remained solid.
The Port Washington, NY-based company — No. 16 on Industrial Distribution's 2021 Big 50 List — reported total Q3 sales of $277 million, down 2.9 percent year-over-year, which snapped a streak of four consecutive growth quarters. Sequentially, sales were up 1.5 percent from Q2.
Global Industrial's Q3 gross profit margin of 36.8 percent — a company quarterly record — increased 100 basis points year-over-year and 80 points from Q2. Q3 operating profit of $30.6 million dipped 2.5 percent year-over-year but improved upon Q2's $25 million, while margin of 11.0 percent — tying a company quarterly record — was unchanged year-to-year and up 190 basis points from Q2.
The company's total Q3 net profit was $23.2 million, down from $24.1 million a year earlier and up from $21 million in Q2.
"Customer demand was strong and accelerated in the period, however supply chain constraints limited product availability, resulting in a significant increase in open orders," said Barry Litwin, Global Industrial CEO. "While this restricted our top line results, we were pleased to see continued growth in core product lines and private label products, which we believe reflects a healthy demand environment."
"While supply chain, labor and freight disruptions continue, we are proactively managing these challenges and utilizing our operational flexibility and entrepreneurial approach to address them," Litwin continued. "We are investing strategically in the business and remain disciplined in cost management, while enhancing our ability to deliver an exceptional customer experience. We believe we are well positioned for the future."