Net sales for July 2015 were $577k representing an increase of $36k or 6.7% from July 2014. Bimba sales for July 2015 increased 19.4% from the same period a year ago. The increase is mainly attributed to an upsurge of orders, new product development, and improved delivery times and product quality. Year over year Ocenco, McMaster, and Panduit sales rose 42.6%, 20.8%, and 23.3% respectively. Parker and S&S showed a slight decline in sales year over year.
Net purchases, including raw material cost, customer returns, scrap, and job closing costs, ended the month at 33.2% of sales compared 27.7% for July 2014. Sales volume, product mix, inventory write-offs, and metal pricing fluctuations influence overall raw material costs. The current month includes a one-time write-off of $36k for slow moving and obsolete inventory identified during the annual inventory review. Excluding the write-off, both sales mix and sales volume negatively affected gross margin for the month.
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The increase in direct labor expense is reflective of a 13.4% increase in direct and indirect labor headcount and higher related wage expense of $26.2k. July 2015 labor cost associated with product sold ended at 27.4% of sales up from 24.6% for July 2014.OSP costs were $20k representing 3.5% of sales in July 2015 relatively unchanged from July 2014. Year over year, OSP decreased from $324.8k representing 4.8% of sales in FY2014 to $294k representing 4.2% of sales in FY2015. The decrease in OSP is primarily due to product mix and sales of products with lower cost or no outside processing. Temporary headcount at July 31, 2015 is up 3 FTEs and $8k from July 2014. Expendable tooling for the current month is $15.4k or 2.7% of sales down 2.2% from July 2014. Year over year expendable tooling is down from $231.9k or 3.5% of sales in FY2014 to $210.4k or 3.0% of sales in