The 2020 Mid-Year Economic Update_long

HD Supply to Close 25 Branches, Cut 350 Jobs

The diversified wholesale distributor recorded a loss of $267 million for the quarter.
hdsupply

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.

About the Author
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.

By subscribing, you are agreeing to MDM’s Privacy Policy.
Social Media Auto Publish Powered By : XYZScripts.com