Higher Costs Force Lawson Income Decline
Higher Costs Force Lawson Income Decline
Jason Sandefur
Rivet and screw supplier Lawson Products Inc. reported net sales grew 15.1% to $518.2 million in 2006. Operating income declined 37% to $22.3 million and net profit dropped 52.8% to $12.6 million.
“(Lawson) achieved record sales levels in 2006, a year that included progress on many initiatives that are important for the company’s long-term growth,” stated CEO Robert Washlow. “In 2006, we invested heavily in the future of Lawson, including the integration of Rutland Tool & Supply Co., acquired in December 2005, which resulted in the expansion of our product offering by about 80,000 stock keeping units.”
Rutland accounted for $13.1 million of net sales and operating income of $500,000 during the fourth quarter of 2006. Full-year Rutland sales were %54.8 million and operating income totaled $2.6 million.
Other changes in 2006 included the reconfiguration of Lawson’s Suwannee, GA, distribution center and breaking ground on a 140,000 sq ft addition to its Reno, NV, distribution center. Lawson also bought back almost 500,000 shares of outstanding stock in 2006.
Overall Q4 net sales increased 9.2% to $126.2 million, while Q4 operating income declined 48% to $3.2 million due to higher costs. Web: lawsonproducts.com �2007 FastenerNews.com
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