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Systemax: Senior Blighty bods let us down, so we cut them
Group sales flat in Q3, losses narrow on back of B2B goodness
Systemax established a European Shared Services Centre (SCC) in Hungary last year, where it has centralised back-office and marketing functions, effectively rendering local in-country offices as satellite sales branches.
“The ramping of our SCC in Hungary continues as we build out its capabilities. While this initiative — coupled with the ERP implementations — has been challenging with one-time costs and business impacts exceeding our initial expectations, we’re beginning to see the fruits of our labor,” said Leeds.
“We remain confident that the SCC and harmonised ERP solution will ultimately result in a lower EMEA cost structure and improved operating efficiencies in the long-term,” he added.
Once selling, general and admin (S,G&A) costs (up from $114.8m to $118.5m) were factored in, along with special charges of $1.7m (albeit better than the $5.8m a year ago), the group operating loss came in at $2.7m compared with an operating loss of $3.8m a year ago.
The Technology Products group reported an operating loss of $9.7m versus $9.9m in the prior year, with the Industrial Products Group making an operating profit of $10.6m. Corporate costs were $3.6m.
Interest and other net expenses of $3.7m left a loss before taxes of $6.4m ($3.2m in Q3 2013) but a benefit from income tax of $3.6m left a net loss of $2.8m, better than the $11.6m loss a year earlier. ®