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Systemax posts rising quarterly sales, net income on strong demand

Systemax's headquarters at 11 Harbor Park Drive in

Systemax's headquarters at 11 Harbor Park Drive in Port Washington. Credit: Systemax

Systemax Inc., a Port Washington-based distributor of industrial equipment and supplies, Tuesday posted rising sales and net income in the third quarter thanks to strong demand, officials said.

Net sales of $235.8 million rose 15.4 percent from the 2017 period.

Net income from continuing operations was $15.1 million, or 40 cents per diluted share, compared to $11.3 million, or 30 cents per diluted share, in the 2017 quarter.

"Demand was robust across the business with solid performance in our managed sales channels, as well as continued generation of new customers," chief executive Larry Reinhold said in a statement.

The earnings report for the quarter ended Sept. 30 was released after Tuesday's stock market close. Shares of Systemax gained 1.9 percent Tuesday to close at $26.30. In after-hours trading, they were unchanged. Twelve months ago, the stock was trading at $26.18.

Earlier this month, the company announced that Barry Litwin, a member of the company's board of directors and chief executive of Manhattan electronics retailer Adorama Inc., would succeed Reinhold as chief executive on Jan. 7. The succession plan calls for Reinhold and Litwin to remain on the board of directors.

On Aug. 31, the company closed on the $270 million sale of its French information technology business to Bechtle AG, based in Neckarsulm, Germany.

Its remaining North American industrial products business generated revenue of about $800 in 2017, the company said. The company's overall revenue in 2017 was $1.3 billion, making Systemax Long Island's sixth largest company by sales.

Systemax sells products through e-commerce web sites, including globalindustrial.com.

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