Distributor Profitability Rose in 2011 Amid Slow Sales Growth

Chemical distributors recorded the highest profits in five years during 2011 despite lagging sales growth, according to the National Association of Chemical Distributors’ (NACD; Washington) annual company productivity report. Total return on assets, which is net profit before tax and interest as a percent of total assets, totaled 10.5% for balanced product mix (BPM) distributors. Distributors of liquid chemicals (LIQ) saw a 10.6% total return on assets, while factory pack distributors saw a 20.2% return.   The NACD report typically measures...

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