Hardware & Lumber could not carry over the good results in the March quarter into their second quarter with revenue of $1.72 billion for the latest quarter to June, 1.4 percent lower than the same period last year, while gross margin fell to 22.7 percent from 26.2 percent, principally as a result of product mix the company reported.
Total revenue for the six months was $3.53 billion, an increase of 7.2 percent ahead of $3.29 billion achieved in the same period last year.
Continued improvements in other income, operating expenses and finance costs resulted in $28.5 million net profit for the quarter or $0.35 per stock unit, compared to last year’s $43 million or $0.54 per stock unit. Profit after tax for the six months was $69 million, or 29.6 percent more than the $53 million for the same period in 2013. Earnings per stock unit for the six months is $0.85, up from $0.66 for the comparative period in 2013.
“Total gross profit for the six-month period was $802 million compared to $866 million for the comparative period last year. The combined effect of variations in sales mix and higher product costs resulted in average gross margins of 22.7 percent, representing a 3.6 percent decline compared to the same period in the prior year. Profit from operations increased by 8.9 percent to $108 million, supported by an increase in other income,” Management stated.
Operating cost for the quarter was down to $377 million from $398 million in 2013 and for the six months, cost fell to $753 million from $398 million in 2013.
Borrowings fell from $453 million in June 2013 to $279 million, helping to reduce finance cost from $25 million down to $16 million for the six months. For the latest quarter finance cost was slashed from $12 million down to $7 million.
The results for the June quarter places a cloud over the prospects for the balance of the year with what could be tight economic conditions. It is quite possible that the robust performance in the March quarter may have taken sales from the second quarter.
Hardware & Lumber falters in Q2
Trackbacks
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[…] Hardware & Lumber recovered somewhat from the poor results in the second quarter, with sales revenue of $1.72 billion for both quarters, with the latest quarter just slightly higher than the same period last year, with profit of $1.71 billion. Hardware and Lumber reported a 20 percent increase in profit for the September quarter to $44 million or $0.54 per stock unit, compared to last year’s $37 million or $0.46 per stock unit. The latest result is in contrast to a 34 percent fall in profit for the June quarter, year over year. Profit after tax for the six months was $113 million, or 26 percent more than the $90 million, for the same period in 2013. Earnings per stock unit for the six months is $1.40, up from $1.11 for the comparative period in 2013. Gross profit for the nine-month period, fell to $1.22 billion compared to $1.3 billion for the comparative period last year, but for the latest quarter, it ended at $422 million, just slightly lower than the $435 million in 2013. Gross margin fell to 32.5 percent from 34.17 percent, in 2013, for the quarter and for the 9 months period 30.4 percent and 35.1 percent in 2013. Total revenues for the nine months is $5.25 billion, an increase of 5 percent ahead of $5 billion achieved in the same period last year. Operating cost for the quarter was down to $370 million from $380 million in 2013 and for the nine months, cost fell to $1.123 million from $1.17million in 2013. Looking ahead, the company increased inventories to $1.6 billion, from $1.1 billion in 2013 and reduced cash to $257 million from $388 million while borrowings fell from $494 million in September 2013 to $320 million, helping to reduce finance cost from $36 million down to $23 million for the nine months. For the latest quarter finance cost was slashed from $12 million down to $7 million. The company results recovered from the poor June quarter and puts them on track to post $4.35 per share for the full year, with the December quarter being their biggest, for revenues and profits. The stock remains Buy Rated with the price at $6.50 with much upside gains ahead. […]
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[…] Firm| The stocks in the main market to close without a change in the last traded prices are, Hardware & Lumber with 200 shares, closed at $6.50, Jamaica Broilers 10,211 units closed at $4, Jamaica Producers with […]
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[…] in the main market are, Carreras with 11,270 shares changing hands, 15 cents higher at $34.65, Hardware & Lumber 1,102 units traded with a gain of 40 cents to $6.50, Jamaica Money Market Brokers with 200 ordinary […]
[…] Hardware and Lumber increased the dividend payment for 2014 over the amount paid for 2013. The company declared an interim dividend of 32 cents per stock unit payable on January 23, 2015 to stockholders on record as at the close of business on January 7, 2015. The stock will trade Ex-dividend on January 5, 2015. An interim dividend 30 cents per stock unit was paid on January 17, 2014 in connection with the 2013 profit. The increased dividend comes in the wake of Hardware and Lumber reporting profit after tax for the nine months to September of $113 million, or 26 percent more than the $90 million, for the same period in 2013. Earnings per stock unit for the nine months, is $1.40, up from $1.11 for the comparative period in 2013. […]