Industrial distributors and manufacturers are reporting their 2022 third-quarter earnings and end-of-year financial outlooks. In this earnings roundup, MDM looks at 3Q reports from electrical products distributor Graybar; home and industrial products maker 3M; water treatment and sustainability provider Pentair; bearings maker SKF; sanitary products producer Kimberly-Clark; and wood construction products manufacturer Simpson Manufacturing Co.
Graybar Reports ‘Record’ 3Q Net Sales
On Oct. 24, Graybar reported third-quarter sales of $2.8 billion, a 20.6% increase compared to the same period in 2021. Net income attributable to Graybar for 3Q was $126.1 million, up 69.7% from the same period last year.
For the January-September period, the company reported net sales of $7.8 billion, a 21.7% increase compared to the same nine-month period in 2021. Net income attributable to Graybar through 3Q increased 76.5% to $355.9 million.
“I am pleased with Graybar’s performance so far this year, and I congratulate our employees on achieving a new quarterly net sales record,” said Kathleen M. Mazzarella, Chairman, President and CEO of Graybar. “Customer demand for our products and services remains steady, and our financial condition is strong. This allows us to invest in our business and pursue new opportunities that strengthen our position as a leader in supply chain innovation.”
3M’s 3Q Sales Drop 4% to $8.6B
The company on Oct. 25 said its 3Q sales were $8.6 billion, a 4% decrease from the same quarter last year. 3M said operating cash flow for the quarter was $1.5 billion, down 18% year-on-year, while adjusted free cash flow was $1.4 billion, down 16%.
3M said it received approximately $1 billion in consideration and reduced outstanding shares by 16 million via exchange offer due to Food Safety divestiture.
“We continue to execute our strategies and deliver for our customers in a highly uncertain environment,” said 3M Chairman and CEO Mike Roman. “Excluding the impact of the decline in disposable respirator sales, our team posted over 3% organic growth. We delivered sequential and year-over-year margin expansion, amidst macroeconomic challenges and the strengthening U.S. dollar.”
Pentair Sales Top $1B in 3Q
Pentair on Oct. 25 said quarterly sales were $1.06 billion, up 9% compared to the same period last year. 3Q earnings per diluted share from continuing operations were $0.70 compared to $0.86 in the third quarter of 2021, Pentair said.
Operating income for 3Q was $147 million, down 12% compared to 3Q 2021. On an adjusted basis, Pentair reported segment income of $207 million, up 15% compared to segment income for the same period last year.
“We reported solid third quarter results with sales growing near double digits and strong segment income and adjusted EPS gains,” said John L. Stauch, Pentair President and CEO. “We saw price outpace inflation once again resulting in strong margin expansion. We are proud of these results given the ongoing supply chain disruptions and the manufacturing inefficiencies that resulted. While we have begun to see some inventory correcting in our residential channels, our commercial and industrial businesses continue to do well. We closed on the acquisition of Manitowoc Ice in the quarter and the integration is off to a good start.”
SKF Organic Sales Grow 11%
On Oct. 25, the company reported that organic sales grew 11% during the quarter despite “unprecedented cost inflation.” SKF said its adjusted operating margin for the quarter was approximately 9%, driven by “a challenging cost inflation, negative mix impact from high automotive growth, and our dependence on manufacturing in Europe. ”
“Considering our unhedged exposure to cost inflation, we expect to see margin tailwind once inflation and energy prices start to normalize,” the company said in a release to investors.
For the January-September period in 2022, organic net sales were up 7.6% year-over-year.
Kimberly-Clark Professional Segment Sales Increase 5%
K-C Professional, the Professional workplace solutions segment of Kimberly-Clark, posted 3Q sales of $800 million, a 5% jump year-over-year. Changes in foreign currency exchange rates decreased sales 4%, while 3Q operating profit of $119 million increased 24% over last year, the company said.
Companywide, 3Q net sales were $5.1 billion, a 1% increase compared last year, including organic sales growth of 5%.
“Our third quarter results reflect strong execution by our teams around the world in the face of a challenging macro environment,” said Chairman and CEO Mike Hsu. “We delivered organic sales growth across all our segments and continued to provide our consumers with value-inspired innovation.”
Simpson Manufacturing Sales Jump Nearly 40%
The Pleasanton, California-based company reported 3Q net sales of $553.7 million, an increase of 39.6% year-over-year. The company said North America net sales were $437.8 million, an increase of 29.3% from $338.6 million, mostly due to product price increases throughout 2021 “in an effort to offset rising raw material costs, as well as higher sales volume.”
Net sales in Europe were $111.9 million for 3Q 2022, an increase of 104.1% from $54.8 million, primarily due to the acquisition of ETANCO, which contributed $67.5 million in net sales.
Income from operations in 3Q was $122.8 million, an increase of 22.1% versus the same period in 2021.