HD Supply, Atlanta, GA, reported sales for the fiscal year ended Jan. 31, 2010, were $7.4 billion, down 24% from a year ago. The company recorded a loss of $514 million, compared to the prior year loss of $1.3 billion.
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Financial performance declines in fiscal year 2009 were primarily a result of continued decline in the residential, commercial, and municipal construction markets, decline in the oil and gas markets, and unfavorable fluctuations in prices of commodities, such as steel, PVC, copper, and nickel. Volume declines were partially offset by positive impacts from efforts to gain new market share.
After a decline of 12.4% in 2009, driven largely by a 27.1% decline in new residential spending, total U.S. construction spending is expected to grow at a 6.2% compound annual growth rate from 2009 through 2013. This forecasted growth is attributed to a recovery in residential construction, beginning with a 5.4% increase in 2010 spending, and, after a projected 10.5% decline in 2010, robust growth in 2011 and beyond for non-residential construction.
During the third quarter of fiscal 2009, HD Supply announced it expected to close 25 branches and reduce workforce by about 400 employees. As of Jan. 31, the company has completed the closure of 15 branches with a headcount reduction of 230 employees. Additional reductions primarily will be focused in the Specialty Construction segment.
As of Jan. 31, HD Supply had 770 branches in the U.S. and Canada.