NOW Inc. Cut Deep By Oil In Q3

The company – No. 11 on ID's Big 50 List – posted a net loss for a third straight quarter, while total sales were down nearly 30 percent from a year ago.

Houston-based NOW Inc., which operates as DistributionNOW, reported its 2015 third quarter financials on Tuesday for the period ended Sept. 30.

The numbers continued a downward slope for the company – No. 11 on Industrial Distribution's 2015 Big 50 List – which has been hurt all year by a declining oil rig count.

NOW Inc. posted a Q3 revenue of $753 million, down 29.6 percent from the same period a year ago, and up less than 1 percent from 2015's Q2. The company took a net loss of $224 million in Q3, compared to a profit of $32 million a year ago. This year's Q2 had a net loss of $19 million, while Q1 had a net loss of $10 million.

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"During the third quarter, we continued to see contraction in the market with unrelenting land rig count declines in the United States, a tepid emergence from seasonal break-up in Canada, and continued stacking and scrapping of deep-water offshore rigs globally," said Robert Workman, NOW Inc. CEO. "While we navigate this uncertain environment, our focus remains on what we can control."

NOW Inc.'s United States sales of $497 million were flat compared to last year, and down 34 percent from a year ago. Canada sales of $94 million were up six percent from Q2, and down 46 percent from last year. International sales of $162 million were down 2 percent from Q2 and up 9 percent from last year.

For the first 9 months of 2015, NOW Inc's total sales of $2.366 billion were down 23.7 percent from last year, with U.S. sales down 24.6 percent. Canada sales were down 38.9 percent, and International sales down 4.6 percent.

Read more: A Gloomy October In Industrial Distribution