Daniel Florness – President and CEO
Able to take a little more advantage with price
” if we continue to see demand get better and the environment remains somewhat inflationary, then a window would probably open for us to take advantage of a little bit of pricing if the market affords. And we sort of deemed the second quarter to be consistent with those themes”
Great. Thank you, Dan, and good morning, everybody. Thanks for joining the call. So just to hit on what Dan covered on Slide 3, our total and daily sales in the second quarter were up 10.6%, that’s an acceleration from up 6.2% in the first quarter. The timing of the Good Friday shift into April from March this year did cost the quarter about 50 basis points. But on the other hand, we included Mansco this quarter, which we acquired on March 31, and that added about 130 basis points. If you adjust those 2 factors, the second quarter daily sales rate was around 9.7%. Either way, growth accelerated to the quarter. And even better than that, in June, the daily sales were up 13% or up 11.6%, excluding Mansco.
*Benefiting from macro strength
“some of our improvement clearly reflects a favorable macro backdrop. The Purchasing Managers Index in the U.S., it represents 88% of our revenue, that averaged a healthy 55.8 reading. Industrial production growth was still modest in the quarter, but did speed up a bit over the prior quarter. These metrics underpin the improvement in our industrial and construction end markets in the second quarter as well as acceleration in both our fastener and non-fastener lines, as you can see from the charts in the presentation. In fact, it’s difficult to identify a major market that is acting particularly poorly at this point. And the feedback that we’re getting from our RVPs remains overall very favorable.”