MSC Industrial Supply posted stronger sales and margin totals, along with a sharp jump in earnings, in its fiscal third quarter, company officials announced Wednesday
The metalworking and MRO distributor reported net sales of nearly $1.05 billion in the quarter ending May 30, which was up 7.8% compared to the same period last year. The company said that its quarterly income from operations was up 29% and that net income attributable to MSC was up 41.4% over that span, while its operating margin climbed 170 basis points year-over-year to 10.2%.
MSC President and CEO Martina McIsaac said that the results exceeded company expectations and showed that “we are fundamentally doing more with less and taking the right steps.” Greg Clark, the company’s vice president and interim CFO, said that prices and volumes returned to growth in the quarter, while McIsaac noted that its “core customer” performance continued to outpace MSC overall.
"While we are encouraged by these results, there is further room to improve,” McIsaac said in a statement. “We will continue advancing the benefits from our strategic initiatives and improving our cost structure that supported our improved performance this quarter.”
MSC expects sales growth of 6.5% to 8.5% on a daily average basis in the final quarter of its fiscal year, along with an adjusted operating margin of 10% to 10.8%. The company does not issue a full-year sales or margin outlook, but did maintain its limited forecast for annual cash flow, capital spending and select other metrics.
MSC ranked at no. 9 on ID’s latest Big 50 list.
