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Systemax reports strong 4Q sales as net income drops

Systemax is based in Port Washington.

Systemax is based in Port Washington. Credit: Systemax

Systemax Inc., a Port Washington distributor of industrial supplies sold through e-commerce websites, on Tuesday posted strong fourth quarter sales.

Sales increased 11.9 percent from the 2017 quarter to $217.7 million, the company reported.

Net income from continuing operations fell to $12.3 million, or 33 cents per diluted share, versus $32.6 million, or 86 cents per diluted share, in the year-earlier period.

The company attributed the weaker net income to tax benefits it reaped in the 2017 quarter. Net income was bolstered by $21.8 million in tax benefits, including provisions of the Tax Cuts and Jobs Act of 2017, Systemax said in a news release. 

"The Industrial Products Group delivered another year of strong sales and operating performance, with record revenue of almost $900 million, an increase of over 13 percent," said Barry Litwin, the recently appointed chief executive, in a statement. "I joined Systemax in early January and my first two months have been a busy and exciting time."

Shares of Systemax, Long Island's sixth largest publicly traded company based on 2017 revenue of $1.3 billion, gained 0.7 percent to close Tuesday at $24.95. After-hours trading was flat.

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