MSC Industrial Direct reports improved 3Q sales, net income

A Google street view photo of the MSC

A Google street view photo of the MSC Industrial Direct Co. Inc. headquarters in Melville. Photo Credit: Google

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MSC Industrial Direct Co., one of Long Island's largest publicly traded companies, said Wednesday that its fiscal third-quarter sales and net income rose because of increased demand for its products.

The Melville-based distributor of tools and supplies to industrial customers said sales rose 13.1 percent from a year ago to $720.5 million in the quarter that ended May 31. Despite the gain, revenue fell short of the $726.5 million analysts were expecting.

MSC itself had estimated sales of between $720 million and $732 million.

Shares of MSC slid $4.39, or 4.70 percent, to close at $88.99 in New York Stock Exchange trading Wednesday.

The company's net income in the latest quarter rose to $64.7 million, up 3.8 percent from the year-earlier period. Per-share income rose to $1.03 cents from 98 cents a year ago.

"Our strategic growth programs continued to drive share gains . . . against the backdrop of continued improvement in overall market conditions," said Erik Gershwind, president and chief executive.

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He said that increased demand from customers has produced "moderate growth" and that MSC is focusing on initiatives to increase revenue "as the demand environment continues to firm."

MSC predicted fourth-quarter sales of between $718 million and $730 million.

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