NAED Releases 2010 Performance Analysis Report (PAR) Highlights

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.