MSC Industrial Direct Co., one of the biggest public firms based on Long Island, said Wednesday its financial third-quarter net income dropped 11.1%, partially because of expenditures linked with a recent equity buyout and the acquisition of a new administrative building in North Carolina.
MSC Industrial Direct CEO Erik Gershwind has said previously his company had no plans to get away from Long Island. The manufacturer of industrial equipment and components last year reported plans to "co-locate" its home office to Davidson, N.C, hence the acquisition of real estate in the area.
Net income in the quarter that ended last month dropped by US$8 million to around US$62 million from last year's US$70 million. Earnings per share slipped to US$0.98 from last year's US$1.10, still beating the US$0.94 analysts estimated as surveyed by Bloomberg News.
Irrespective of slowing demand for its products, the firm managed a 4.1% improvement in revenue for the reported quarter, which again, exceeded analysts' estimates. Sales went up to US$637 million from last year's $612 million. The latest number surpassed analysts' expectation of $621.7 million .
"We continue to fuel share gains in our targeted markets, despite a sluggish manufacturing sector. The organic growth investments we have made in e-commerce, vending and other areas are offsetting a weak demand environment," Gershwind, Chief executive of Melville-based MSC Industrial said.
Join the Conversation