Industrial Distribution Group 1Q Sales Fall 3.7%

ADVANCED SEARCH

READER'S CHOICE
Most Popular Stories

• Motion Industries Acquires Drago Supply Company
• DXP Enterprises Acquires PFI for $65M
• Fastenal Agrees to Settlement in Wage-Hour Case
• Precision Castparts Agrees to Buy Airdrome Holdings
• Ryerson's Journey with Platinum Equity

HOME
ABOUT MDM
CONTACT US
CUSTOMER SERVICE

E-Mail This Article

Printer-Friendly Version

Beyond HD Supply: "Distribution M&A 2007 Update" Order the Audio Conference CD

Untitled Document

May 8, 2007

Industrial Distribution Group 1Q Sales Fall 3.7%

Industrial Distribution Group Inc., Atlanta, GA, reported sales in the first quarter 2007 were $135.1 million, down 3.7% from the same period a year ago. Profit was $1.5 million, equal to a year ago.

For the first quarter, revenues from Flexible Procurement Solutions, IDG's integrated supply offering including storeroom management, were $81.1 million, an increase of 0.7% from the first quarter 2006. FPS revenues were 60% of total first-quarter revenues as compared with the 57.4% reported in first quarter 2006.

As of March 31, 2007, the company had 336 total FPS sites, including 100 storeroom management arrangements. New FPS customers generated incremental revenue of $9.1 million for the first quarter of 2007, partially offset by a continued decline in the domestic automotive and truck sectors, which had a negative impact of $3.7 million on FPS revenue.

General MROP sales fell from the prior year first quarter by 9.6% to $54 million. The decline was attributed to a general business decline in the automotive and truck sectors, which had an impact on a portion of IDG's customer base of tier-one and tier-two suppliers supporting Big 3 automakers. The remainder was due to declines in the manufactured housing and recreational vehicle industries.

"During the first quarter we continued to focus our sales force on engaging our suppliers in an effort to grow our sales outside the automotive industry," President and CEO Charles Lingenfelter said. "... Internally, we experienced and addressed service level challenges associated with the integration of our newly-implemented company-wide ERP system, which impacted certain of our customers. Despite these challenges, we made significant progress toward achieving our objectives of enabling future profitable sales growth and driving higher profitability through internal efficiencies."

More Breaking News