Metalworking and MRO supplies distributor MSC Industrial Supply Co. (NYSE: MSM) reported fiscal 2022 third-quarter net sales of $958.6 million for the three-month period ended May 28. It was a year-over-year increase of 10.7%.
Income from operations in MSC’s 3Q had a 6.4% increase from a year earlier to $136.8 million. Net profit reached $99.7 million.
The company’s gross margin was 42.9%, a slight increase from 42.3% in the prior fiscal year quarter, and held a strong operating margin of 14.3%.
“Our fiscal third quarter is another proof point of the building momentum inside of our company,” said Erik Gershwind, MSC’s president and CEO. “We achieved double-digit average daily sales growth, roughly 500 basis points above the Industrial Production index. We grew gross margins sequentially and year over year thanks to strong price realization in an inflationary environment. Finally, and most notably, we translated top line growth into significant operating leverage and adjusted operating margin expansion.
“At the same time, we are not satisfied,” Gershwind continued. “We will look to build on recent momentum and to set our sights even higher in terms of market share capture and profitability improvements.”
MSC’s recent strategic moves, such as its June 3 acquisition of metalworking tools and supplies distributor Engman-Taylor, will play a role in their continuous momentum, the company said.