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Systemax Q1 Profits Up 15%

5/11/2011 10:39:22 AM Eastern
Port Washington, N.Y. - Strength in its industrial products group and European b-to-b operations helped Systemax chalk up a 15-percent increase in net sales, to $929.9 million, for the first quarter ended March 31.

Sales remained soft within its consumer retail business, however, falling 4 percent to $449.4 million while same-store sales declined 8 percent.

Chairman/CEO Richard Leeds attributed weakness in the consumer channel, comprised in the U.S. of the TigerDirect, CompUSA and CircuitCity.com franchises, to "the choppy economic environment," although performance improved through the quarter. The division is being run on an interim basis by Technology Group CEO Robert Leeds while the company seeks a successor to Gilbert Fiorentino, who resigned this week over undisclosed improprieties.

Systemax, which makes and sells computers, components and IT-related industrial products, is "well-positioned with a solid balance sheet, which provides us tremendous financial flexibility and a deep management team that is committed to building long-term value for our shareholders," Richard Leeds said.

 
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