Hughes' Second Quarter Sales Down, But Margins And Income Up
Hughes Supply reported net sales of $774.7 million for the second quarter ended Aug. 2, down 3.9% from $806.3 million last year.
Hughes Supply (Orlando, Fla.) reported net sales of $774.7 million for the second quarter ended Aug. 2, down 3.9% from $806.3 million last year. Net income increased 25.8% to $18.5 million vs. $14.7 for the same period last year.
The increase in net income resulted from a 7% reduction in headcount, which contributed to lower selling, general and administrative expenses, as well as better management of inventory, which enabled the wholesaler to pay down debt and record lower interest expense, according to David Hughes. Hughes, chairman/chief executive officer of Hughes Supply, discussed the company's financial performance in a conference call with analysts in August. Tom Morgan, president/chief operating officer, and Steve Zepf, chief financial officer, also participated in the conference call.