3 August 2007 — Deerfield (IL): United Stationers has reported record Q2 net sales of $1.14 billion, up 2.7 percent from $1.11 billion a year earlier.
The categories with positive quarterly growth were jan/san, traditional office products, and office furniture. Offsetting these category increases was a sales decline in the technology category.
Net income fell by 42 percent to $24.1 million, or diluted EPS of $0.84, from $41.4 million (or diluted EPS of $1.29) last year.
Q2 2006 included benefits from product content syndication and marketing programme changes, as well as a gain on the sale of two distribution facilities.
Net sales for the first half were $2.3 billion, up 3.3 percent from $2.2 billion in the same period last year. Income from continuing operations for the first half of 2007 was $51.3 million, or diluted EPS of $1.74, compared with $62.3 million, or $1.94 per diluted share, in the comparable prior-year period. The period was subject to a $1.4 million restructuring charge related to a workforce reduction.
President and CEO Dick Gochnauer said: "We are pleased with our results for both Q2 and the first half of 2007. On an adjusted basis, we achieved comparable EPS growth of 20 percent in Q2 and 30 percent for the first half. Our results reflect ongoing margin management and continuing progress in expense control.
"While sales growth within the industry appears to be moderating, we are confident that the actions we are taking will enable us to deliver another year of record financial performance."