NOW Inc. Sales Plummet in 2Q - Modern Distribution Management

NOW Inc. Sales Plummet in 2Q

NOW Inc., which reported a loss of $30 million for the quarter and a loss of $361 million for the first six months of 2020, is enacting cost-reduction measures.
NOW Inc.

NOW Inc. (NYSE: DNOW), Houston, TX, reported sales for the second quarter of $370 million, down 52.3% year-over-year. The company reported a loss of $30 million, compared to a profit of $14 million a year ago.

Second-quarter sales in the U.S. were $260 million, down 57% year-over-year. Sales in Canada were $41 million, down 44.6%. And international sales were $69 million, down 28.9%.

“We are taking decisive measures to achieve structural efficiencies by combining businesses, centralizing support functions, delayering management, consolidating distribution centers and evolving the branch model, while also making significant cost reductions,” said David Cherechinsky, President and CEO of NOW Inc. “We are deploying technology to eliminate repetitive tasks and condense the order to cash process, as well as investing in digital tools to enrich the customer experience. We improved our already stellar balance sheet by expanding our cash position to $269 million and we remained debt free with ample runway on our undrawn credit facility.”

Year-to-date sales were $974 million, down 37.6% over the prior-year period. The company reported a loss of $361 million, compared to a profit of $32 million a year ago.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.