DXP Enterprises, Inc., Houston, TX, working through two hurricanes in its region, announced a 43% increase in net income to $1.1 million for the third quarter ending Sept. 30, 2005, compared to net income of $743,000 for the third quarter of 2004. Sales increased 1.2% to $43.4 million from $42.9 million for the third quarter of 2004. Gross profit increased 15.2% from the third quarter of 2004. Year-to-date earnings as of Sept. 30 increased 59% to $3.4 million, compared to $2.1 million for the first nine months of 2004. Sales increased 6.3% to $130.6 million from $122.8 million for the first nine months of 2004. Gross profit for the first nine months of 2005 increased 17.1% compared to the same period in 2004.
‘'Results for the third quarter of 2005 were up substantially from last year despite being negatively impacted by two major hurricanes which struck the U. S. Gulf Coast during August and September'', said Mac McConnell, senior vice president and CFO. ‘'As a result of the hurricanes, our New Orleans service center was closed for approximately four weeks and 17 of our locations, including the corporate office, were closed for two to six business days. The operations of many of our customers were down for longer periods which disrupted our sales. We feel fortunate that our facilities sustained little damage. The cost of physical damage, relocation of inventory and employee assistance amounted to approximately $200,000 in additional expenses.''
‘'The devastation of these two major hurricanes disrupted our sales and increased expenses but we are thankful that these losses were not considerably greater," said David R. Little, chairman and CEO. "Shortly after hurricane Katrina, we directed our sales team to engage our customers by identifying their strategy to repair and rebuild. This direct involvement with our onshore, offshore and petrochemical customer base has already had a significant impact on short term and long term orders. When hurricane Rita turned our direction, we were ready to proactively plan with our customers. This proactive strategy has had an immediate result in orders and customer satisfaction. The outlook for DXP is strong for the remainder of 2005 through 2006 as our customers rebuild and come back on line.''
DXP provides innovative pumping solutions, integrated supply and MROP (maintenance, repair, operating and production) services that emphasize and utilize DXP's product knowledge and technical expertise in pumps, bearings, power transmission, seals, hose, safety, fluid power, electrical and industrial supplies.
SmartSource, a DXP integrated supply program, allows a more efficient way to manage the customer's supply chain needs for MROP products. The program allows the customer to transfer all or part of their supply chain needs to DXP, so the customer can focus on his core business.
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