MSC Industrial Direct’s 3Q Net Sales and Earnings Down
Melville, NY– Maintenance, repair and operations (MRO) supplier MSC Industrial Direct (NYSE: MSM) reported a 4% decline in net sales for its fiscal third quarter, from $212.8 million last year to $204.8 million for the three months ended May 26. Income from operations was down 25%, from $28.6 million to $21.4 million. Net income tumbled 24%, to $12.4 million, before a one-time, nonoperating, after-tax charge of $9.9 million, for the a minority investment in several online MRO businesses. Net income for the comparable quarter of 2000 was $16.4 million.
Two Computer Mailers Warn of Lower Earnings
Stamford, CT—Two publicly traded computer catalogers, Insight Enterprises and PC Connection, have lowered their profit projections for the upcoming quarter. Tempe, AZ-based Insight it expects second-quarter earnings of $0.28-$0.30 per share, compared with $0.34 per share last year and analysts’ expectations of $0.32-$0.34 per share. This is the second time Insight has warned of falling profits this year. Insight expects net sales for the quarter of about $505 million, nearly flat with last year’s and down from the first quarter’s sales of $557.5 million.
Merrimack, NH-based competitor PC Connection expects second-quarter net income of $0.05-$0.07 per share, significantly lower than the $0.15 per share analyst consensus estimate compiled by Thomson Financial/First Call. The catalog blames price competition and “cautious corporate demand” for the disappointing figures.