Zep Reports Net Loss in 2Q Fiscal 2009 - Modern Distribution Management

Zep Reports Net Loss in 2Q Fiscal 2009

Zep Inc., producer of cleaning and maintenance products, reported a net loss of $0.9 million in the second quarter fiscal 2009.
 
Sales were at $114.6 million in the second quarter, down 13.9% from the prior-year period.
 
The company reported weakened demand in most markets - management estimated that about 70 percent of the 14 percent decline in quarterly sales volume was attributable to the global economic slowdown, with the remainder due to reduced selling capacity resulting from the elimination of underperforming sales representatives and other demand-shaping initiatives.
 
Sales in the first half fiscal 2009 were $243.8 million, down 11.9 percent from the prior-year period. The company reported a net loss of $2.5 million, versus $8.2 million ...

Zep Inc., producer of cleaning and maintenance products, reported a net loss of $0.9 million in the second quarter fiscal 2009.
 
Sales were at $114.6 million in the second quarter, down 13.9% from the prior-year period.
 
The company reported weakened demand in most markets – management estimated that about 70 percent of the 14 percent decline in quarterly sales volume was attributable to the global economic slowdown, with the remainder due to reduced selling capacity resulting from the elimination of underperforming sales representatives and other demand-shaping initiatives.
 
Sales in the first half fiscal 2009 were $243.8 million, down 11.9 percent from the prior-year period. The company reported a net loss of $2.5 million, versus $8.2 million net income in the prior year.
 
Zep reported it has “begun to realize incremental benefits from its entrance into the industrial distribution market. While management believes the recession is slowing the rate and magnitude of these benefits, the opportunities afforded by this channel remain encouraging.”

Share this article

About the Author
Recommended Reading
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.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.