The largest B2B distribution M&A deal finalized Monday, and it is going to have a big impact on electrical, industrial and datacomm distribution.
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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.
While the COVID-19 pandemic has slowed M&A to a crawl in distribution and most sectors, companies that chose to hunker down rather than innovate during the pandemic could be targeted by savvy strategic and financial buyers once activity resumes.
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.
The increase was mostly due to the acquisition of Ingersoll-Rand plcs Industrial segment by Gardner Denver Holdings, Inc. in February of 2020.
Average daily net sales increased 0.2%.
The company reported a loss for the quarter of $248.2 million, compared to a loss of $19.5 million during the first quarter of 2019.
A follow-up phone call to the industrial distributors mid-April 1Q report provides detail behind dramatic shifts in growth rate, with EVP and CFO Holden Lewis highlighting how the company is pivoting to meet changing customer demands.
The decline reflected lower sales to the Vehicle market, partially offset by growth in Industrial and Medical, which included contributions from Dynamic Controls.
Supply Technologies net sales declined 15% year-over-year and totaled $141 million compared to $165 million last year.
Pharmaceutical Distribution Services revenue was $45.6 billion, an increase of 9.3% compared to the same quarter in the prior fiscal year.
The company reported a loss of $331 million for the quarter, compared with a profit of $18 million a year ago.
Profit was $16.7 million, compared to $6.7 million in the first quarter of 2019.
First quarter Electronic Instruments Group sales were $774.2 million, down 4% compared to the same period in 2019.
Net product sales accounted for $41.8 billion, up 22% year over year from $34.3 billion.
