Slow, grinding recovery for ASA members in August per latest report.

For the fourth consecutive month, members of the American Supply Association have reported growth, showing a 2.3% improvement in per-workday revenues during the month of August 2010 as compared to the same month in 2009.

Year-to-date, the plumbing, heating and pipe, valve and fitting distributors are still behind last year by 1.4% and behind by 17.3% as compared to 2008.

August 2010 had one more workday than in 2009. The raw monthly revenues for the industry members were up 7.2% for the month vs. 2009 and down 13.2% as compared to two years ago.

More distributors continue to report improved margins in 2010 as compared to 2009. The larger distributors also continue to be doing better on general profitability than the rest of the distributors serving this industry.

Inventory reduction continues, with another 1.4% drop compared to 2009 (14.4% drop as compared to 2008). However, when compared to 2008, inventory turns continue their reduction as the drop in sales exceeds the inventory reduction.

In accounts receivable, days sales outstanding continues to be about the same as the previous year, as the industry stands at 47.1 days.

The trend of reduced head count continues for the second consecutive year.

The slow, grinding recovery continues for the PHCP industry, with better than two-thirds of the distributors reporting improved profitability. In 2009 almost all of the members reported reduced profitability.

For a full report containing statistical evaluation by regions of the country, market segments and distributor size, companies should contact Chris Murin at cmurin@asa.net or 312.464.0090 ext. 204.

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