HD Supply, Atlanta, GA, No. 2 on MDM’s list of top 40 industrial distributors, reported sales for its second quarter ended Aug. 1, 2010, were $2 billion, an increase of $1 million from the second quarter of 2009.
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The distributor reported a loss in the second quarter of $115 million, compared with $89 million in the same period a year ago.
Excluding 2010 and 2009 charges for valuation allowances, the net loss of $82 million in the second quarter of fiscal 2010 compares with a net loss of $85 million in the second quarter of fiscal 2009.
Sales in the first six months of fiscal 2010 were $3.8 billion, a decline of 2.8 percent.
The distributor reported a loss for the first six months of fiscal 2010 of $317 million, compared to a net loss of $79 million for the same period in fiscal 2009. Excluding the 2010 and 2009 charges for valuation allowances and the 2009 gain from the debt extinguishment, net loss of $200 million in the first six months of fiscal 2010 compares with a net loss of $197 million in the first six months of fiscal 2009.
“As we enter the second half of this year, we are beginning to see signs of economic and industry stabilization and are cautiously optimistic. We continue to invest in the critical growth areas for our business that will uniquely position HD Supply to grow faster than the markets as they recover," said CEO Joe DeAngelo.
"Over the past six months, we have enhanced our product mix, continued to improve our operational efficiencies and have made critical investments in our technology systems. In addition, our teams are intensely focused on maintaining and growing current customer relationships, and earning new business by providing outstanding service to our customers. Our growing liquidity and the extension of the majority of our debt maturities to 2014 enhances our solid financial position.”
In March 2010, HD Supply entered into amendments to its $1.3 billion Cash Flow Credit Agreement and its $2.1 billion ABL Credit Agreement, which extended $874 million of the Term Loan principal and $1.75 billion under the ABL Credit Agreement to April 1, 2014.
HD Supply is a distribution company providing products and services to professional customers in the infrastructure & energy, maintenance, repair & improvement and specialty construction markets. HD Supply has 770 locations in North America.