HD Supply, Atlanta, GA, reported sales for the third quarter ended Nov. 1, 2009, were $1.93 billion, down 24.9% from the prior year period, according to a recent filing with the Securities and Exchange Commission.
The diversified wholesale distributor in the infrastructure and energy, maintenance, repair and improvement and specialty construction markets recorded a loss of $267 million for the quarter, compared to a loss of $91 million a year ago.
During the third quarter, HD Supply initiated a plan to restructure the company that includes the closure or consolidation of 25 branches and a reduction in workforce of about 350 employees, according to the SEC filing. This plan follows the completion of a previous restructuring plan initiated in the fourth quarter of fiscal year 2008 that resulted in the closure or consolidation of 210 branches and a work force reduction of 4,500.
For the first nine months, sales were $5.83 billion, down 25.8% from the same period a year ago. The company recorded a loss of $346 million, compared to a loss of $189 million the prior year.
Market Sector Results
Sales in the Maintenance, Repair & Improvement sector decline 2.7% during the third quarter to $528.2 million. Operating income decreased 44.6% to $29.3 million.
Specialty Construction sales fell 37.4% to $404.5 million, primarily a result of continued declines in the residential construction market. The segment reported an operating loss of $38.4 million.
Third quarter sales for the infrastructure & Energy segment were $953.1 million, down 28.3% from a year ago.The segment reported an operating loss of $178.7 million compared to operating income of $79.7 million the prior year.