Core & Main LP, which is based in St. Louis, on Tuesday reported second-quarter sales of $1.3 billion, up 35.7% compared to the year-ago quarter. Net income for the three months ended Aug. 1 decreased 47.5% compared the prior year period.
“Core & Main delivered exceptionally strong performance in the second quarter, achieving record net sales with nearly 36% growth compared with the prior year, all while operating in a very dynamic environment,” said Core & Main CEO Steve LeClair. “We benefited from strong end market demand attributable to continued growth in municipal water infrastructure spending and robust housing demand. This materialized into strong volume gains as well as improved pricing, in part due to the inflationary trends across many of our product lines.
“The market momentum and rising material costs put pressure on the industry’s supply chain and our internal resources, and I am very proud of how our team has managed these challenging conditions to provide consistent, reliable products and services to our customers. As a result of this execution and continued traction against our defined growth initiatives, we believe we outperformed our end markets and delivered core market share gains in the quarter.”
In 2Q, Core & Main, which is a distributor of water, wastewater, storm drainage and fire protection products, was active on the M&A front announcing the acquisitions of L & M Bag & Supply Company and Pacific Pipe Company, both of which closed subsequent to the quarter.
In July, Core & Main launched the roadshow for its initial public offering (IPO) that was first announced in May.
“During and subsequent to the second quarter, we successfully completed our initial public offering of approximately 40 million shares of Class A common stock, inclusive of the full exercise of the underwriters’ over-allotment option, generating gross proceeds of approximately $802 million,” LeClair said. “We used proceeds from the offering to deleverage the balance sheet, positioning us with greater flexibility to pursue our growth strategies.”