Distributors see positive signs in their respective end markets
Following other positive earnings reports this week, pumping solutions and MRO products distributor DXP Enterprises and electrical/industrial distributor WESCO International both reported a boost in sales and earnings for the second quarter of 2010.
DXP’s second-quarter sales rose 16%--to $167.3 million—compared to the same period a year ago, and were up nearly 14% sequentially, the company reported Thursday. Net income for the six months ended June 30 was $8.1 million compared with net income of $5.3 million for the first half of 2009. Sales for the first half of 2010 rose 4% to $314.3 million.
DXP’s chairman and CEO David R. Little predicted continued growth ahead in 2010.
"We are pleased with our sequential growth from the first quarter to the second quarter and our operating leverage that resulted in a 27.6 percent increase in net income. As we continue to drive our sales and operational excellence programs, we are optimistic that we can show continued top line and bottom line growth for the second half of 2010," Little said in a statement announcing the results.
At WESCO, second-quarter sales rose 8.6% to $1.26 billion compared to the same period in 2009 while sequential sales rose 9.6%. The distributor reported net income of $27.8 million compared with $26.4 million in the same period a year ago and $19.2 million in the first quarter of 2010.
WESCO’s six-month sales rose 2.9% to $2.4 billion.
Company CEO John Engel pointed to growth in all of WESCO’s major end markets and product categories during the quarter.
"All four of our major end markets and all six of our major product categories experienced positive sequential sales growth during the quarter. The last time we saw all our end markets and product categories grow sequentially was the second quarter of 2008, and the third quarter of 2004, respectively," said John J. Engel, CEO.
The news follows positive results from another industrial distributor—Airgas, Inc.—earlier this week. Airgas’ fiscal first-quarter sales rose 6% while earnings rose 26%, the company reported Wednesday.