Melville-based MSC logs 19% revenue jump
MSC Industrial Direct Co., a Long Island-based distributor of industrial tools and supplies, Wednesday reported a 19 percent jump in revenue on higher sales to manufacturing companies.
Revenue at the Melville company rose to $635.3 million during June, July and August, compared to the same period last year. The lion's share of growth came from an 11.9 percent jump in manufacturing supply sales.
MSC's net income for the fiscal fourth quarter climbed 16 percent, to $68.9 million, or $1.10 per share.
"Despite an increasingly difficult demand environment, we delivered solid results in the fourth quarter and for the year," said MSC president and chief operating officer Erik Gershwind, who takes over as chief executive on Jan. 1.
MSC benefitted from having 14 weeks in its fourth quarter this year, compared to 13 in the final quarter of 2011. Average daily sales for the quarter were up 10.4 percent.
The company's performance beat analysts' forecasts of $632.8 million in sales. MSC's stock was up 5.52 percent Wednesday, to $74.60 per share.
Gershwind, however, said MSC faced challenges as manufacturing slows amid global economic concerns. The company could also lose between $2 million and $3 million in sales as a result of disruptions from Hurricane Sandy, MSC chief financial officer Jeff Kaczka said.