Gains follow positive quarterly sales and earnings news from other large distributors earlier this week
Fastener and industrial supplies distributor Fastenal reported an 18.8% net sales increase in July compared with July 2009. Daily sales in July grew 24.4%, with a 0.4% gain due to the change in foreign currencies (primarily Canada). During the month, Fastenal said sales to manufacturing customers grew 35.9% and non-residential construction customers grew 3.8%.
The news follows positive sales and earnings news from other large distributors earlier this week:
MRO distributor Interline Brands reported a slight sales increase for the second quarter of 2010—0.1% to $270.2 million, compared to $269.9 million in the same period a year ago. Earnings per share rose 35% to 27 cents compared with 20 cents in the same period a year ago.
Looking at end markets, Interline’s sales to professional contractors saw the greatest growth in the quarter, increasing 15%. Sales to facilities maintenance customers fell 0.7%, while sales to specialty distributors rose 3.2%
Interline's gross profit increased $3.3 million, or 3.3%, to $101.6 million for the second quarter of 2010. Sales fell 2.2% for the six months ended June 25, however, to $515.4 million compared with $526.7 million in the same period last year.
Smith International, the parent company of pipe, valves and fittings distributor Wilson, reported an 18% sales increase in the second quarter compared to the same period last year, and a 7% sales gain compared to the first quarter. Smith doubled its earnings in the second quarter, reporting net income of $65.1 million, or 26 cents per share, compared with $32.1 million in the second quarter of 2009.
Second-quarter revenues for Wilson (its distribution segment) were $490.3 million, 9% above the March 2010 quarter and 19% higher than the same period last year. Project spending in the United States for line pipe rose more than 50% from the prior quarter and, together with higher energy sector volumes, more than offset the impact of lower seasonal activity levels from the company's Canadian operations, Smith executives said.
Manufacturer and logistics services provider Barnes Group reported net income of $14.8 million, or 26 cents per diluted share, compared to $10.4 million, or 19 cents per share, in the second quarter of 2009.
Second-quarter 2010 sales rose 10.5% to $281.9 million compared with $255.2 million in the second quarter of 2009.
Sales in Barnes’ Logistics and Manufacturing Services segment, which includes its North American and European distribution businesses, rose 1% to $138.5 million. The increase was driven primarily by revenue growth in the North American distribution businesses as macro-economic conditions, including industrial production, continued to improve, the company said.
"We continue to benefit from improved economic conditions, particularly within our industrial and automotive manufacturing businesses," said Gregory F. Milzcik, president and chief executive officer of Barnes Group Inc. "Double-digit sales growth coupled with a continued focus on an efficient cost structure through lean initiatives has provided a 67 percent improvement to our operating profit this quarter."