
MSC Industrial Supply again posted a decline in sales and a sharp drop in earnings in its latest fiscal quarter on Thursday, although company officials said that the âsolid resultsâ fell within MSCâs expectations for the period.
The Long Island-based metalworking and MRO distributor â no. 9 on IDâs 2024 Big 50 â reported net sales of $892 million in its second quarter, down 4.7% compared to the same window last year.
Income from operations fell by nearly 32% year-over-year â from $91 million down to $62 million â as net income attributable to MSC fell from $62 million to $39 million, a decline of 36%. The latter total translated to diluted earnings that fell from $1.10 per share down to $0.70 per share in the latest period.
The companyâs operating margin also declined from 9.7% to 7% year-over-year.
MSC CEO Erik Gershwind said in a statement that the companyâs results fell within its projections despite a âchallenging operating environment with industrial demand at low levels.â He added that the quarter saw âimportant milestonesâ in reenergizing growth among core customers, as well as an expanded solutions footprint.
Gershwind also noted that the company launched website upgrades and an enhanced marketing campaign during the quarter â issues that plagued the companyâs results, particularly among core customers, last year.
Kristen Actis-Grande, the companyâs executive vice president and CFO, added that the results in January and February âexceeded historical month-over-month trends.â
"While we are encouraged by positive early indicators from our growth initiatives and improving sequential growth rate trends, we have more work to do, and the environment remains uncertain,â Gershwind said in the statement. âWe are focused on executing our âMission Criticalâ productivity and growth initiatives.â
The company again issued a full-year outlook for only select metrics, such as capital expenditures and free cash flow conversion. The company's sales and margin projections were only issued for the third quarter; they anticipate sales to be flat to down 2% in the current quarter with an adjusted operating margin of between 8.7% and 9.3%.