Net sales for the fourth quarter of fiscal 2011 were $533.2 million, an increase of 15.6% over net sales of $461.4 million in the fourth quarter of fiscal 2010. Operating income for the fiscal 2011 fourth quarter rose 33.2% to $93.9 million from $70.5 million in the same quarter a year ago.
As previously announced, the company acquired American Tool Supply, Inc. and its affiliate, American Specialty Grinding Co., Inc. (together, “ATS”), during the quarter.
For the 2011 fiscal year, net sales increased 19.5% to $2.02 billion from $1.69 billion in fiscal year 2010. Operating income for fiscal 2011 was $349.8 million, or 17.3% of net sales, compared to $241.8 million, or 14.3% of net sales, in fiscal 2010. For fiscal 2011 the company reported net income of $218.8 million, an increase of 45.5% over net income of $150.4 million a year ago.
Record revenue & profitability
David Sandler, chief executive officer, said, “The results for the fourth quarter and fiscal 2011 were excellent, highlighting our market leadership and ability to capitalize on the current environment. We achieved many important milestones, including record levels of revenue and profitability. We further enhanced our metalworking value proposition and leveraged our consistently strong cash flow to invest for the future.”
Erik Gershwind, president and chief operating officer, stated, “Our performance reflected the continued strength we are seeing from our core manufacturing customer base despite broader economic uncertainties.
Mr. Sandler concluded, “MSC is well positioned as we head into fiscal 2012. Business conditions throughout the bulk of our manufacturing segment generally remain solid. Customers broadly reiterate their focus on doing more with less, which bodes well for the MSC model and our future growth prospects. While customers express some caution about future business conditions as a result of the current economic uncertainty, we are confident in our plan to take disproportionate market share in any environment. Against this backdrop, MSC will continue to focus on executing on our strategic investment plan to further build out our capabilities and extend our market presence. We will do so while maintaining flexibility to adjust investment levels as market conditions warrant.”
Based on current market conditions, the company expects net sales for the first quarter of fiscal 2012 to be between $538 million and $550 million.
MSC Industrial Direct Co., Inc. distributes approximately 600,000 industrial products from approximately 3,000 suppliers to approximately 320,000 customers. MSC reaches its customers through a combination of approximately 19 million direct-mail catalogs, 105 branch sales offices, 1,051 sales people, the Internet and associations with B2B eCommerce portals.