Lawson Products Continues Strong Sales and Profit Growth in Third Quarter
Mike Hockett / Industrial Distribution
Product distributor MRO Lawson Products released its financial results for the third quarter of 2021 on October 28, showing continued significant improvement in year-over-year sales, while organic sales also saw solid growth.
Chicago-based Lawson reported total third-quarter revenue of $ 105.6 million, up 16.9% year-on-year and just behind the company’s second-quarter record of 106.5 millions of dollars. Average daily net sales also increased 16.9%.
Much of the growth was fueled by Lawson’s acquisition of Partsmaster in 2020, although organic sales still grew 8.4% without including this addition – thanks to improved trading conditions and actions on prices within the Lawson MRO and The Bolt Supply House businesses. Sequentially, Lawson MRO and Bolt Supply business increased while Partsmaster sales declined primarily due to weak federal government business.
The company’s third-quarter gross profit of $ 56.0 million improved from $ 47.2 million a year earlier and topped $ 54.6 million in the second quarter. The third quarter gross margin of 53.1% exceeded 52.3% a year earlier and 51.3% in the second quarter.
Lawson said its third-quarter MRO segment organic gross margin was 58.7%, essentially flat year-over-year and up from 57.2% in the second quarter, mainly due to the metrics price, product supply and labor taken to offset inflationary pressures.
The company’s third-quarter operating profit of $ 4.6 million was above $ 3.4 million a year ago and $ 3.4 million in the second quarter, while profit Third-quarter total net worth of $ 3.7 million more than doubled the previous year’s $ 1.7 million and topped the second-quarter’s $ 2.9 million.
“With the integration of Partsmaster largely behind us, we are now well positioned to begin to reap the benefits of our integrated sales organization, including cross-selling products and a larger sales force with greater market coverage.” said Michael DeCata, President and CEO of Lawson. . “During the quarter, we faced similar global supply chain issues, labor shortages and inflation that impacted many businesses. We are aggressively managing this environment and have taken steps to improve product sourcing, pricing and labor allocation to protect our margins.
Lawson ended the third quarter with 1,064 active salespeople, down 22 from the end of the second quarter and 56 year-on-year.
Lawson was No. 32 on Industrial distributionThe list of the 50 greats of 2020.