MSC Industrial Direct Co. Inc.(NYSE: MSM), distributor of metalworking and MRO supplies, reported sales for the fiscal 2010 second quarter ended Feb. 27, 2010, were up 12.4% to $395.5 million. Profit was $30.6 million, an increase of 16.6%.
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Sales for the first half of fiscal 2010 were $780.3 million, down slightly from $784.9 million in the first half of fiscal 2009. Profit for the first half was $62.1 million.
President and CEO David Sandler said: "Importantly, while our overall growth was largely driven by the performance of our Large Account Program, we were also encouraged by the improvements we saw from our traditional customer base in the quarter.”
MSC reported improved inventory turns and days sales outstanding in receivables.
“Having passed through the most challenging economic climate in recent history, we are now seeing encouraging signs of stabilization in the market," said Sandler. "We believe the steps we have taken through the economic downturn are now delivering the market share gains and the financial performance we expected. While the recovery is still in its early stages, we have seen our sales growth rate accelerate and believe this sales momentum is real and sustainable going forward, particularly in light of performance to date in the fiscal third quarter. In this environment, we will remain focused on outstanding execution and capitalizing on the opportunities we see in the marketplace.”
MSC distributes 600,000 industrial products from 3,000 suppliers to 330,000 customers. MSC reaches its customers through a combination of 29 million direct-mail catalogs and CD-ROMs, 95 branch sales offices, 949 sales people, the Internet and associations with some of the world's most prominent B2B eCommerce portals.
