Chicago-based MRO distributor Lawson Products – No. 37 on Industrial Distribution's 2014 Big 50 List – reported its 2015 second quarter financial earnings on Thursday for the period ended June 30.
The company reported total sales of $70.7 million, down 1.9 percent year-over-year, but up from Q1's $69.9 million. Lawson's profit continued to gain, as its net income of $2.9 million was up from $0.8 million a year ago, and up from Q1's net loss of $1.4 million and Q4 2014's net loss of $2.7 million.
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Lawson said the weaker Canadian dollar and reduced energy demand continued to lead to broader-based MRO slowdown and lower sales, though the company was still able to achieve growth.
"We delivered improved operating results,” said Michael DeCata, president and chief executive officer. "Our continued improvement in operating results re-confirms that customers value our business model. We ended the quarter with 920 sales representatives. We remain committed to expanding our sales force and refining processes to improve their early success with us."
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Lawson said demand during Q2 from direct oil and gas customers declined $1.4 million from a year ago and has leveled-out from Q1. Excluding this decline and the Canadian exchange rate impact of $0.9 million, net sales increased 1.4 percent year-over-year.
"In summary, I am pleased with our performance this quarter," DeCata said. "We will continue to refine our processes, add sales people in targeted markets and utilize our strong financial position to pursue growth opportunities."