(Nov. 18) Ace Hardware, the Oak Brook, Ill.-based co-op, reported its third-quarter 2009 fiscal year results yesterday, posting total revenues of $832.6 million, a 13.9% decrease from $967 million in the same quarter of 2008. For the nine-month period ended Oct. 3, total revenues were $2.7 billion, an 8.5% decrease from a year ago.

Ace reported net income of $26.7 million for the third quarter of 2009, a 1% increase over income of $26.4 million in the same quarter last year.

For the nine-month period ended Oct. 3, net income was $83.3 million, an 18% increase over the corresponding period of 2008.

Merchandise sales to comparable domestic stores in the third quarter of 2009 decreased $99.6 million, primarily due to a soft economy, the company said. On a regional basis, sales were most negatively impacted in the Gulf Coast region, which experienced a decline of hurricane-related merchandise sales compared with the prior-year period.

On a category basis, domestic sales were most negatively impacted by declines in the plumbing, electrical and hardware categories. Declines in tools, electrical and hardware were partially offset by increases in the lawn and garden category, the co-op said. 

Merchandise sales to new domestic stores activated in the 2008 and 2009 fiscal year periods contributed $12.1 million in incremental sales in the current year's third quarter. Ace added 24 new stores and cancelled 43 stores in the third quarter, resulting in a net loss of 19 stores. This brought the company’s total store count to 4,511 at the end of the third quarter in 2009. 

Ace’s international business, as measured by merchandise sales, decreased $12.2 million, or 21.8%, in the third quarter of 2009 as compared with the prior-year’s quarter. On a regional basis, international sales were most negatively impacted by declines in the South America, Middle East and Pacific Rim regions due to a slow global economy. On a year-to-date basis, international sales decreased $30.3 million, or 19.9%. 

“While we are not pleased with our top line results during the quarter, our overall performance in the third quarter is solid in what has been a very challenging year,” said Ray Griffith, Ace’s president and CEO. “We delivered a solid bottom line performance while continuing to invest in our technology systems. In addition, we are controlling our costs and strengthening our foundation, which is built on a strong, nationally recognized brand, a superior distribution system and the most helpful hardware professionals in the industry.”