Excluding sales from its recent AmSan acquisition, "organic" average daily sales rose 4.2%. That's a decent result, with Interline's facilities maintenance business offsetting sales declines of 9.6% and 10.6% at its contractor and specialty distributor businesses, respectively. Expect the weakness in these two businesses to continue for the rest of the year.
Nonetheless, the company raised its earnings outlook for the year, to $1.53-$1.57 a share, on the strength of the facilities maintenance market. It previously expected to earn $1.49-$1.55 a share, a healthy increase from last year's adjusted earnings of $1.34.
SG&A expenses rose to 28.3% of sales, from 27.2%, but Fools shouldn't be alarmed. The company expected this increase, since AmSan's valuable stable of brands also came with higher expenses. In addition, the company's investing in initiatives to bolster performance.
These are good results for Interline, especially considering the weakness in two of its three key markets. When these areas recover, its performance should significantly improve. Interline's numbers seem even more distinguished in light of the lousy quarter endured by rivals such as Industrial Distribution Group
Fool contributor Larry Rothman is happy to receive feedback, and promises to read it when not being wrestled by his three children. He doesn't have any positions in the companies mentioned.