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Industrial Distribution Group, Inc., Atlanta, GA, revised its annual revenue growth rate to between 3.5% and 5.5% for 2005, as compared to the prior annual growth rate estimate provided by the company of 6-8% for 2005. IDG announced an update to the company's business outlook for the full-year 2005 and preliminary information relative to the company's financial results for the third quarter ended Sept. 30, 2005.
Based on preliminary information and subject to the completion of the company's standard quarterly financial review, IDG currently expects to report revenues for the quarter ended Sept. 30, 2005, from continuing operations of $130 million to $135 million. For the full year 2005, the company estimates revenues from continuing operations to be $535 million to $545 million. This annual range is below the $560 to $570 million 2005 estimate provided in the company's Aug. 2, 2005 conference call. In addition, the company expects this new business outlook to result in an annual revenue growth rate of between 3.5% and 5.5% for 2005, as compared to the prior annual growth rate estimate provided by the company of 6-8% for 2005.
"During the third quarter, a number of our customers experienced a decline in manufacturing production levels and certain existing new customer sites have not ramped into production as quickly as anticipated," said Andrew B. Shearer, IDG's president and CEO. "We were also impacted by the effects of the strike at The Boeing Company. The strike not only impacted IDG, but it also affected other IDG customers who serve The Boeing Company. In addition, there continues to be weakness in the automotive and automotive supplier businesses, a significant industry segment for IDG. This resulted in IDG experiencing a decline in demand for its products and services from existing customers, which was not offset by growth in revenues from new customers. The company continues to work diligently to further implement its Flexible Procurement Solutions services model, which we believe will provide significant benefits to IDG, our customers and our shareholders."