Posted April 29, 2010
Sales drop 4.3 percent for Lawson Products
Lawson Products Inc. reported net sales for the first quarter of 2010 were $95.1 million, a 4.3% decrease compared to net sales of $99.4 million for the prior year period.
However, sales 6.5% increase compared to net sales for the fourth quarter of 2009. Gross profit increased to $55.5 million in the first quarter of 2010, 2.4% better than the prior year's first quarter. Gross profit as a percentage of sales for the first quarter of 2010 increased to 58.4% compared to 54.5% in the first quarter of 2009 and 57.5% in the fourth quarter of 2009.
Operating income for the first quarter of 2010 was $4.6 million compared to an operating loss of $9.0 million in 2009. 2010 operating income included a $1.7 million gain from the sale of Lawson's Dallas distribution center.
The company reported net income of $2.3 million, or 27 cents per share, compared to a net loss of $5.9 million, or 70 cents per share, in the first quarter of 2009.
"First quarter results were encouraging. Market conditions appear to be stabilizing. We were able to increase our profitability while continuing to make progress in implementing our key strategic initiatives, including our ERP implementation," said Thomas Neri, president and CEO.
He said the company significantly reduced its cost structure and believes most of the cost reductions are sustainable.
