HD Supply has reported net sales for its second fiscal quarter of 2011 of $2.2 billion, an increase of $195 million, or 10%, over sales in the same quarter of 2010. Loss from continuing operations for the second quarter of fiscal 2011 was $101 million, compared with a loss from continuing operations of $115 million for the second quarter of fiscal 2010. Excluding income taxes, loss from continuing operations was $86 million in the second quarter of fiscal 2011, compared with a loss of $45 million in the corresponding quarter of fiscal 2010.
Operating income for the second quarter, which ended July 31, was $73 million, an improvement of $46 million compared with operating income a year ago. Liquidity at the end of the second quarter of fiscal 2011 was $1.2 billion, the company said.
Joe DeAngelo, CEO of HD Supply, said in a prepared statement: “The second-quarter results marked the company’s fifth consecutive quarter of sales growth and each of our business sectors [Infrastructure & Energy, Specialty Construction and Maintenance, Repair & Improvement] reported year-over-year sales growth for the quarter. During the second quarter, sales initiatives, continued focus on margin expansion and cost control resulted in the highest quarterly operating income since the second quarter of fiscal 2008.”
During the second quarter, HD Supply entered into an agreement on Aug. 25 to sell its plumbing/HVAC business to Hajoca Corp. The transaction is expected to close in September 2011 upon the satisfaction of customary closing conditions, including obtaining requisite government approvals. Upon the closing of the transaction, the company anticipates recording a modest gain and expects to utilize the funds from the transaction for growth initiatives.
HD Supply Waterworks also completed the acquisition of Rexford Albany Municipal Supply Co. during the quarter, expanding for the first time into the state of New York. More recently, Facilities Maintenance, in partnership with U.S. Communities, a non-profit government purchasing cooperative, was awarded the products and related services MRO contract for one of the largest counties in the United States -- Maricopa County in Arizona.