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 sales 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 nine months was $113 million, or 26 percent more than the $90 million, for the same period in 2013. Earnings per stock unit for the nine to September 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.
Q3 profit up 20% at Hardware & Lumber
Trackbacks
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