Lawson Sales Up; Income Down
Lawson Sales Up; Income Down
John Wolz
Lawson Products Inc. reported second quarter 2006 net income plummeted 42.8% to $3.2 million despite a 17% increase in net sales from the same period last year to $131 million. Lawson’s Q2 operating income dropped from $9.4 million in 2005 to $5.1 million this year.
The results were affected by costs associated with stock performance rights, a loss on sale of equipment and legal costs associated with the ongoing investigation by the U.S. Attorney’s office.
Q2 results include the operations of Rutland Tool & Supply Co., which was acquired in December 2005. The fastener, metalworking tools and machine tools distributor accounted for $14.5 million of net sales and $700,000 of operating income in the quarter.
CEO Robert Washlow described Q2 as “challenging. For the second quarter, our growth initiatives did not drive sales gains to anticipated levels, resulting in lower earnings performance overall.” Web: lawsonproducts.com
�2006 FastenerNews.com
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