The National Association of Electrical Distributors (NAED), St. Louis, released its annual Performance Analysis Report (PAR) Highlights this week. The report shows that electrical distributor profit margins decreased to a median of 1.1% in 2009, compared to medians of 2.6% in 2008, 3.2% in 2007, 3.7% in 2006, and 2.9% in 2005. Among the top performing 25% of "high profit" distributors, the 2009 profit margin was more than four times as high at 4.7%.
The report also showed 2009 median sales decreases of 22.4%. The typical distributor surveyed, based on median figures, had annual sales of $48.7 million and achieved a gross margin of 21.7% in 2009. Inventory turnover was 3.8; payroll expenses were 14.6% of sales. For more information on NAED's PAR report click here.