Industrial distributor Grainger says its U.S. segment sales were up 3.1%, outgrowing the U.S. MRO market which declined an estimated 5% to 6%.
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Despite just 2.5% sales growth in the third quarter, Fastenal is poised to take market share in industrial distribution, according to one analyst. See what the distributor has working in its favor.
Despite minor blip in global sales, Ferguson’s U.S. revenue grew 2.7% during the fiscal year with underlying trading profit growth of 5.2%.
Industrial distributor Fastenal saw its sales mix continue to return to normal in August, and the company again reduced its total workforce, this time by 7.5%, which is part of a larger industry trend toward omnichannel selling.
But industrial distributor also sees headcount continue to decline and the number of “selling personnel” is down nearly 10% compared to the same time last year.
CEO Michael DeCata reports the company is positioned for solid future growth, including acquisitions.
The company’s second quarter financial results report $5.2 billion in net income.
IRCG's weekly comparison of distribution business to previous year's data reflects 'unnerving sense of stability.'
The severity of the coronavirus crisis has exceeded that of the Great Recession more than 10 years ago, and while distributors haven’t been spared the impact of COVID-19, the industry is faring better than most.
Grainger’s sales dipped 2% last quarter as pandemic-related sales (e.g., PPE) again offset softness in its traditional product line, but non-pandemic sales are showing signs of life.
But year-to-date sales grow 2.6% from same period in 2019 as company posts “record, double-digit sales and profit growth rates in June,” according to Watsco's CEO.
Industrial distributor estimates that MRO market declined 14% to 15% during the quarter even as company gained share in the U.S.
June sales increased 20.4% over the same month a year ago as the company's safety and PPE sales continued to bolster company during pandemic.
Industrial distributor’s sales decline 3% in the first nine months compared to year-ago period while profit dips 2.4 percent YTD.
The safety category again stole the show for Fastenal Co. during its May sales report with a 136.3% increase, while the companys fastener business has likely hit the bottom during the COVID-19 disruption and could be on the upswing.
Profit for the year was $126 million, compared to $105 million in 2019.
The company withdrew its full-year 2020 outlook on April 28, 2020, due to the uncertain impact of the COVID-19 pandemic and committed to provide monthly updates until it is better able to forecast future performance.
Combined net sales for the fiscal months of March and April (the first two months of the Company's fiscal third quarter) were $565.4 million, a decrease of 7.8% compared to the same period in the prior fiscal year.
