DES PLAINES, Ill.-- Lawson Products, Inc., a distributor of products and services to the MRO marketplace, recently announced second quarter results, showing continued sales growth.
-- Net sales grew by 4.8% year-over-year to $84.2 million for the quarter
-- Operating income was $1.6 million for the second quarter of 2011 compared to $2.8 million a year ago. Exclusive of $2.4 million of ERP expenses in 2011 and $0.6 million in 2010, operating income was $4.0 million in the second quarter versus $3.4 million a year ago
-- As of June 30, 2011 cash-on-hand was $22.7 million with no debt outstanding
"We have been able to grow sales as we continue to invest in our business transformation initiatives," commented Thomas Neri, president and chief executive officer. "With a shift toward strategic and larger customers, we expected some pressure on margins. However, we have been able to leverage our recurring cost structure despite our ongoing transformation process. In the second half of 2011, we will continue to implement initiatives to drive sales and gross profit dollars."
"Additionally, we will continue to make infrastructure investments throughout this year as we position the company for sustainable future growth. After months of extensive planning and preparation for our ERP implementation, we plan to go-live with the first phase during the third quarter. All of our initiatives, including the new ERP system, are focused on delivering an enhanced customer experience that should strengthen our position in the MRO marketplace, assist in growing sales, and help us to improve our operating performance," concluded. Neri.
Second Quarter 2011 Results
Net sales for the second quarter grew to $84.2 million, an increase of 4.8% over the prior year quarter as the Company entered into tougher comparables from a year ago. The $3.8 million net sales increase was primarily due to continued growth in the Company's national, government, and automotive sectors combined with a moderate increase in the Company's other sectors. The national and government sectors accounted for 17.8% of net sales in the second quarter of 2011, compared to 16.2% in the same quarter last year. The Company's average daily sales for the second quarter increased to $1.315 million, from $1.255 million in the second quarter a year ago.