Industrial distributor MSC Industrial Direct
Co., Melville, NY, sales increased 12.7% to $305.9 million in the second quarter
of fiscal year 2006, compared with $271.4 million in the same period last
year.
Profit for the second quarter rose 21.6% to
$33.3 million versus $27.4 million a year ago.
For the first half of fiscal
2006, the MSC’s sales rose 12.6% to $601.8 million, compared with sales of
$534.7 million a year ago. Profit in the fiscal 2006 six-month period was $65.3
million compared with $53.4 million in the year-ago period, an increase of 22.2%
in profit.
“We are very pleased with the
results for the second quarter of fiscal 2006,” stated David Sandler, president
and CEO. “We saw balanced growth throughout our geographic regions, as well as
between the manufacturing and non-manufacturing sectors of our business. … All
of these achievements were made while continuing to invest in our market
expansion strategy, a clear sign of the leverage we have built into our business
model.”
MSC recently signed an
agreement to target=_blank>acquire J & L Industrial Supply, a subsidiary of
Kennametal Inc., for $349.5 million. J & L is a national specialty
metalcutting and finishing distributor with more than 74,000 customers. The
transaction is expected to close during the second calendar quarter of 2006,
subject to customary closing conditions.
Mr. Sandler concluded, “Market
conditions remain solid, and our core business continues to show strength and
grow. We look forward to the successful completion of the J & L acquisition,
and to realizing the significant benefits built into this strategic transaction,
while also continuing our market expansion strategy.”
The management of MSC will host a
conference call March 30 at 11 a.m. Eastern Time to review the second quarter of
fiscal 2006 results and to comment on current operations. The call may be
accessed via the Internet at: target=_blank>http://www.mscdirect.com
. The call will be
archived.
MSC Industrial Direct is a
distributor of MRO supplies to industrial customers throughout the U.S. MSC
distributes more than 500,000 industrial products from 2,100 suppliers to
344,000 customers. MSC reaches its customers through a combination of more than
28 million direct-mail catalogs, 91 branch sales offices, 550 sales people, the
Internet and associations with B2B e-commerce portals.
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