After divesting several underperforming business segments in the past two years, Systemax Inc. recorded sales growth in the first quarter, led by its Industrial Products Group.
Systemax, which sells maintenance, repair and operations, or MRO, products that companies use to manage their equipment and facilities, said in March it would sell the European Technology Products Group, excluding its I.T. services business in France. That move enabled a refocus on its relatively profitable Industrial Products Group in North America and France, the company said earlier this year.
The company’s move away from the retail computers and electronics, led by the sale of its TigerDirect.com business to PCM Inc. in 2015, accelerated in 2016 with the sale of its Germany-based operations of electronics supplier Misco, including e-commerce sited Misco.de. It retained several Misco e-commerce sites in the United Kingdom, France and other European countries.
“More than a year ago we commenced a strategy to exit our underperforming businesses and streamline our company. With the sale of the remainder of our underperforming businesses in Europe in March 2017, we have substantially completed this initiative and successfully transformed Systemax,” says CEO Larry Reinhold. “The growth, potential and value of our profitable Industrial Products Group and France technology value-added reseller businesses are highlighted in the results of our continuing operations.
The Industrial Products Group’s flagship unit is GlobalIndustrial.com.
Although Systemax doesn’t break out e-commerce sales, it has noted that self-service e-commerce sales account for a large share of total revenue. It also stated that nearly all sales, including those placed directly with sales reps, are supported in one way or another by e-commerce, such as when sales reps use the company’s websites to help customers research and place orders.
For the first quarter of fiscal 2017 ended March 31, Systemax, No. 110 in the B2B E-Commerce 300, reported:
- Total sales of $302.5 million, up 5.5% from $286.8 million.
- Industrial Products Group sales of $190.2 million, up 11.5% from $170.6 million.
- Europe Technology Products Group sales of $112.3 million, down 2.5% from $115.2 million.
- Net loss of $18.5 million, compared to a net loss of $17.3 million in the same period last year.
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