DXP Enterprises' Q3 Sales & Profit Sink

The Houston-based distributor's organic sales declined more than 22 percent in Q3 while facing end market challenges in upstream drilling, development and completion, upstream production, and mining.

Houston, Texas-based DXP Enterprises – No. 20 on Industrial Distribution's 2015 Big 50 List – recently reported its 2015 third quarter financials for the period Sept. 30, led by a considerable year-over-year sales decline and net loss.

The company posted Q3 sales of $303.1 million, down 21.7 percent from last year. DXP's organic sales declined 22.3 percent, while acquisitions had a positive $2.2 million impact.

DXP took a net loss of $52.7 million in Q3, compared to a profit of $16.9 million in the same period a year ago.

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DXP's sales were down sequentially from Q2's $323.7 million in Q2, while Q2 profit was $7.2 million.

"During the third quarter we continued to experience uphill sales challenges across our major end markets including upstream drilling, development and completion; upstream production; and mining markets," said David Little, DXP CEO. 

By business segment DXP's Innovative Pumping Solutions sequential sales declined 8 percent, Service Centers declined 7 percent, and Supply Chain Services declined 0.8 percent.

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