MSC Industrial profit falls after acquisition
Melville-based MSC Industrial Direct Co., one of the largest public companies headquartered on Long Island, said Wednesday its fiscal third-quarter net income fell 11.1 percent, partly because of expenses associated with a recent acquisition and a new co-headquarters building in North Carolina.
The distributor of industrial tools and supplies last year announced plans to "co-locate" its headquarters to Davidson, N.C. Chief executive Erik Gershwind has said MSC has no plans to leave Long Island.
Net income in the quarter ended June 1 fell to $62.4 million, from $70.2 million last year. Earnings per share dropped to 98 cents, from $1.10 a year ago, but beat the 94-cent estimate of analysts surveyed by Bloomberg News.
Despite slowing demand for its products, the company eked out a 4.1 percent increase in revenue for the quarter and exceeded analysts' estimates. Sales rose to $636.9 million, from $612 million last year. The latest number topped the $621.7 million analysts were expecting.
The fiscal third-quarter revenue includes about $34.7 million from Barnes Distribution North America, a Cleveland distributor that MSC acquired in April.
"We continue to fuel share gains in our targeted markets, despite a sluggish manufacturing sector," Gershwind said. "The organic growth investments we have made in e-commerce, vending and other areas are offsetting a weak demand environment."
MSC shares closed at $80.31, up 40 cents in New York Stock Exchange trading Wednesday. That price compares with its 52-week high of $87.92.