Systemax Inc. (NYSE: SYX), the Port Washington, New York-based parent of Global Industrial, reported sales for the first quarter of $251.1 million, up 10.5% from the year-ago period. Profit declined 33.7% to $5.5 million.
“Sales reflect a continued recovery in core categories, which finished the quarter with a strong March, and solid demand for our Global Industrial branded products,” said Barry Litwin, CEO. “We are pleased with core category performance, and given the signs of an improving economy, we remain optimistic about the demand environment.
“However, we were disappointed with our freight margin and resulting overall profitability which reflects the impact of the February winter storms, increased costs related to the transition to a new third party logistics provider, inflationary freight pressures, and a write down of personal protective equipment inventory. These events were partially offset by improved product margins, as well as selling, distribution and administrative leverage. We believe that many of the negative drivers of first quarter margin performance are temporary and will ease as we move through the summer.”
Read more about Systemax in our 2020 Q&A with Litwin.
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