- * Q4 profit beats estimates
* Forecasts weaker first-quarter results
* Says slowing economy impacts industrial sector
(Recasts; adds details)
Oct 21 (Reuters) - Tools and industrial services provider MSC Industrial
Direct Co Inc posted a higher-than-expected quarterly profit, helped by lower
costs, but forecast first-quarter results below Wall Street estimates. For the
fourth quarter ended Aug. 30, net income was $50.5 million, or 80 cents a share,
compared with $47.4 million, or 71 cents a share, in the year-ago period.
The latest quarter's results included other income of $1.6 million
relating to the sale of certain real estate assets, the company said in a
statement.
The company's revenue for the quarter was $448.6 million, compared with
$450.5 million, while its operating margin rose above 17 percent for the period.
Analysts on average were expecting earnings of 75 cents a share, before
special items, on revenue of $447.4 million, according to Reuters Estimates.
"These are challenging times, as the deterioration in the credit markets
has exacerbated the effect of a slowing economy on the industrial sector, which
represents about 75 percent of our total sales," Chief Executive David Sandler
said in a statement.
For the first quarter, the company expects earnings of 68 cents to 72
cents a share on revenue of $436.0 million to $446.0 million.
Analysts on average were expecting 78 cents a share, before special
items, on revenue of $455.1 million.
Shares of the Melville, New York-based company fell more than 6 percent
to $36.50 in early trade on the New York Stock Exchange.
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anil D'Silva)
Keywords: MSCINDUSTRIAL/
Bhaswati Mukhopadhyay
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