Cleveland-Lesco Inc. net income was off 44 percent for the second quarter ending June 30, to $8.9 million ($.95 per diluted share) on sales of $181.9 million, versus the year-ago $15.7 million ($1.71 per share) and $190.2 million, respectively. Golf sales were off 13 percent, to $35.7 million from the year-ago $41 million, while lawn care and landscape were off only two percent, to $148.1 million from $151.2 million. Lesco cited several factors for the second quarter downturn, including higher raw materials costs, a decline in supplier rebates, competitive pricing in the fertilizer sector, and indirect supply chain costs. As previously announced, the company is reinstating its direct sales representatives model, which had been disbanded in the first half of 2005. It says it will place representatives in 30 key markets and has obtained commitments to fill 17 of these positions. Six-month data saw a $1.7 million loss ($.19 per share) on sales of $281.8 million, compared to the year-ago net income of $5.1 million ($.55 per share) on sales of $288.2 million.
Transparency Across the Fertilizer Value-Chain