Industrial products and MRO supplies distributor Global Industrial Company, which rebranded from Systemax during 2021, reported its 2021 fourth quarter and full-year financial results on Feb. 15, showing a year-over-year sales decline for a second-straight quarter, while continued to improve.
The Port Washington, NY-based company — No. 16 on Industrial Distribution's 2021 Big 50 List — reported total Q4 total sales of $262 million, down 4.3 percent year-over-year and trailing Q3's $277 million. On a daily sales basis, Q4 sales improved 3.5 percent, as 2020's Q4 had five additional selling days.
Global Industrial's Q4 gross margin of 37.0 percent — another company quarterly record — increased 300 basis points year-over-year and topped Q3's 36.8 percent, while operating profit (continuing operations)of $26 million on 10.0 percent margin topped the $21 million and 7.7 percent margin of a year earlier, and trailed the $31 million and 11.0 percent margin from Q3.
The company's total Q4 net profit of $41.0 million dwarfed the $16.2 million of a year earlier, as Q4's benefitted from $22.7 million gained from discontinued operations. As for continuing operations, Q4's net profit of $20.3 million jumped 23.8 percent year-over-year and trailed Q3's $23.2 million.
"Customer demand was strong throughout the quarter, and we were very pleased with the performance of core product lines," said Barry Litwin, Global Industrial CEO. "Open orders remained elevated as a result of ongoing constraints within the supply chain, which restricted top line results and had a modest impact on operational leverage."
For the full year, Global Industrial had 2021 total sales of $1.063 billion, up 3.3 percent vs. 2020. The company's 2021 gross margin of 35.2 percent topped 2020's 34.7 percent, while operating profit (continuing operations) of $88 million and 8.3 percent margin topped 2020's $84 million and 8.2 percent margin. Total net profit of $103 million topped 2020's $65 million, while net profit from continuing operations of $70 million topped 2020's $64 million.
"As we move into 2022, we will continue to innovate and strengthen our competitive position," Litwin added. "We are investing in key strategic initiatives, specifically in areas such as sales, marketing, private brand, digital transformation, and distribution."