MSC Industrial Direct Company Inc. (NYSE:MSM), the premier distributor of Metalworking and Maintenance, Repair and Operations products and services to industrial customers throughout North America, today reported financial results for its fiscal 2019 third quarter ended June 1, 2019.
The Melville, New York company reported net sales of $866.5 million, a 4.6% YoY increase, with 260 basis points of acquisitive growth
Operating income was $110.5 million, a decrease of 4.2% YoY, while its operating margin was 12.8%. Diluted Earnings per Share were $1.44
To top it all off, MSM declared aquarterly dividend of $0.75 per share, an increase of 19%
Said CEO Erik Gershwind,"Our fiscal third-quarter performance leaves us disappointed. We have seen a step-down in demand since April, while the pricing environment remains uncertain due to the overhang of tariffs and trade.
"In response to near-term trends, we have implemented a three-part action plan to 1) improve field sales execution and accelerate new account implementation; 2) increase profitability of our supplier programs; and 3) drive increased expense control and productivity."
The Company expects net sales for the fourth quarter of fiscal 2019 to be between $835 million and $851 million. At the midpoint, average daily sales are expected to increase roughly 2.2% compared to last year's fourth quarter. The Company expects diluted earnings per share for the fourth quarter of fiscal 2019 to be between $1.21 and $1.27.
Excluding acquisitions, the Company expects net sales for the fourth quarter of fiscal 2019 to be between $808 million and $824 million, with average daily sales at the midpoint expected to increase roughly 1.0% compared to last year's fourth quarter.
Shares lost $3.70, or 5.1%, to $68.57
