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End of 2009 Stock Report: MSC INDUSTRIAL

END of 2009 RESULTS
MSC Industrial Direct reported net sales rose 12.4% to $395.5 million in the second quarter of fiscal 2010, with operating income growing 15.4% to $49.9 million and net income increasing 16.6% to $26.3 million. 

MSC said both inventory turns and days sales outstanding in receivables improved during the period, reflecting what CEO David Sandler called a “solid performance against a backdrop of improving market conditions.” 

Sales for the first half of fiscal 2010 dipped 5% to $780.3, while net income dropped 13% to $62.1 million. 

“Having passed through the most challenging economic climate in recent history, we are now seeing encouraging signs of stabilization in the market,” Sandler stated. 

MSC forecasts net sales of $436 million to $448 million for the fiscal third quarter. 

In fiscal 2009 full year sales, including fasteners, decreased 16% to $1.49 billion, with operating income falling 35% to $204.7 million and net income slipping 36% to $125.1 million. 

MSC boosted its fastener offerings by 40% in 2008, which helped it achieve higher sales. 

2008
Topping market estimates, MSC Industrial Direct Co. reported sales of $351.9 million during the second quarter of fiscal 2009, which ended March 31. Net income dropped 45% to $26.3 million, while operating expenses declined 3% to $120.6 million for the quarter. MSC doubled its cash reserves to about $138 million during Q2. 

At present the company has suspended its 401(k) matching contribution and cut executive incentives. 

Sales for fiscal 2008 rose 5.4% to $1.78 billion, while net income gained 12.8% to $196.2 million. Sales through MSC websites totaled $476.5 million for fiscal 2008, representing 26.8% of consolidated net sales. 

MSC boosted its fastener offerings by 40% in 2008, which helped it achieve higher sales. 

Meanwhile its sales force grew to 912 associates by August 31, 2008, boosted by MSC’s strategy to acquire new accounts and expand existing accounts across all customer types. 

HISTORY
Founded in 1941, Melville, NY-based MSC Industrial distributes 600,000 metalworking and MRO supplies – including fasteners and hardware – from 3,000 suppliers to 343,000 customers. 

MSC offers 42,000 fastener products among its 590,000 industrial products from 3,000 suppliers. 

Founded in 1941 by Sid Jacobson as Sid Tool, MSC has 95 branch sales offices (94 in the U.S. and one in the UK) with five fulfillment centers: Atlanta; Elkhart, IN; Harrisburg, PA; and Reno, NV; and Wednesbury, UK. 

Corporate Office: 75 Maxess Rd., Melville, NY 11747-3151. 
Tel: 516 812-2000 Fax 800 255-5067
Web: mscdirect.com
CEO: David Sandler
Investor Relations: Charles Boehlke 
Employees: 4,261
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