Chemical Distribution Industry Posts Impressive Growth During 2010

ARLINGTON, Va., Sept. 15, 2011 /PRNewswire-USNewswire/ --  Thanks to keen and focused management, members of the National Association of Chemical Distributors (NACD) have posted strong results coming out of the recession.  

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The Association's annual Company Productivity Report (CPR) shows NACD member companies achieved strong profitability in 2010. In particular, nominal dollar sales rose 12.9%, 24.0%, and 11.7% for the LIQ, FPP, and BPM groups* respectively.  While physical throughput of pounds of chemicals moving through the warehouse (without 3rd party), sales were 7.9% lower in 2010 (as compared to 2009) for the LIQ group, the FPP and BPM groups saw a 16.0% and 13.4% rise, respectively.

Overall profitability, as measured by the performance ratio "before tax return on net worth (i.e., owner's equity)" for 2010 was 19.3%, 48.5%, and 36.3% for the LIQ, FPP, and BPM groups respectively.  For every group, this 2010 profitability performance was sharply higher than that which was experienced in 2009.

"The recession had its effect on NACD's members, as it did on all industrial sectors," said NACD President Chris Jahn.  "But on the whole, it weathered the storm better than other industries, due largely to  a strong, conservative management culture backed by a commitment to Responsible Distribution, NACD's management performance practice."  

Our member companies tell us that among the benefits they see in participating in Responsible Distribution are stronger risk management, reductions in insurance claims and costs, assistance with regulatory compliance, conservation of company resources, development of systematic employee training, and better documentation of company policies," Jahn continued. "As our nation comes out of this recession, thanks to their commitment to Responsible Distribution, our member companies will be stronger than ever."

The NACD Company Productivity Report (CPR) is an annual financial ratio benchmarking analysis tool for member firms to evaluate their company's operating results in order to pinpoint strengths and weaknesses, and improvement opportunities. Participating firms receive an overall industry-wide report as well as an individual report containing the firm's own ratios calculated alongside the appropriate industry comparatives.

*LIQ - Firms with 75% or more of sales from Liquids (bulk/repackaged)
FPP - Firms with 75% or more of sales from Factory Packaged Products (liquid and/or dry)
BPM - Balanced Product Mix (neither LIQ or FPP)

NACD and its over 400 member companies are vital to the chemical supply chain providing products to over 750,000 end users. They make a delivery every six seconds while maintaining a safety record that is more than twice as good as all manufacturing combined. NACD members are leaders in health, safety, security, and environmental performance through implementation of Responsible Distribution, established in 1991 as a condition of membership and a third-party verified management practice. For additional information on our members, their safety record or NACD, visit NACD at www.nacd.com .

Contact:  Matt Glaser
703/527-NACD(6223)

SOURCE National Association of Chemical Distributors (NACD)