KLX Inc., a distributor of tools, parts and materials for the aerospace and energy industries, is having a good year with a strong boost from e-commerce sales.
The company’s revenue climbed 13.6% in the fiscal second quarter ended July 31 to $430.6 million. For the fiscal first half, revenue climbed 15% to more than $840 million, up $110.2 million from a year earlier. Much of that increase came from e-commerce sales, CEO Amin Khoury noted on a second quarter conference call with stock analysts last week.
Although KLX doesn’t break out e-commerce revenue, Khoury said during the conference call that it was on pace to reach “more than $100 million” in the current fiscal year, according to a transcript from Seeking Alpha. The company’s e-commerce operation has “become a material part of the overall business,” he said, adding: “It’s no longer a start-up business.”
Khoury also said he was surprised to learn that the e-commerce business “is somewhat more profitable” from the rest of KLX’s operations. He didn’t elaborate.
KLX processes online sales through ShopKLX.com, an e-commerce site the company relaunched in 2015 for products sold by the distributor’s aircraft products unit, KLX Aerospace Solutions. KLX Aerospace supplies such products as industrial fasteners, bearings, seals, electrical components, tools, lighting fixtures and chemicals to airlines, aircraft manufacturers and businesses that provide aircraft repair and maintenance services. Its customers include the U.S. military and manufacturers The Boeing Company and Airbus SAS.
KLX Aerospace also operates a supplier web portal, where its suppliers can receive purchase orders from KLX, exchange order confirmations, provide information on shipping status, and exchange other information regarding online transactions.
For the second quarter ended July 31, 2017, KLX reported:
- Revenue of $430.6 million, up 13.6% from $378.9 million a year earlier;
- Gross profit of $118.6 million, up 28.2% from $92.5 million;
- Net earnings of $20.7 million, up 158.8% from $8.0 million.
For the six months ended June 30, 2017, KLX reported:
- Revenue of $841.9 million, up 15.1% from $731.7 million a year earlier;
- Gross profit of $231.5 million, up 31.5% from $176.0 million;
- Net earnings of $39.1 million, up 272.4% from $10.5 million.
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