By: Jake Levinson
MSM is our first report this quarter and results were a bit of a headscratcher. Core growth of ~5% was disappointing…in-line with our estimate for the group overall this quarter, but trails our expectations for peer distributors FAST at 14% and GWW at 7%. That’s also in spite of modest price increases that saw the first positive price/mix quarter in 2 years. It’s also below what we would have expected given the Metalworking Business Index (MBI; similar to ISM) printing a very strong 60-ish reading for 3 consecutive months through March. Hard to say whether this is a mix issue or if MSM lost some share this quarter…Amazon is often called out as a culprit, but this is hard to measure.
Originally published April 10, 2018