Lawson Products Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. Net sales for the third quarter of 2009 were $95.1 million, a 24.1% decrease compared to net sales of $125.4 million for the prior year period, reflecting reduced customer demand due to current economic conditions. Operating income for the third quarter of 2009 was $2.9 million compared to operating income of $5.8 million in 2008. The company reported net income of $1.5 million or $0.18 per share in the third quarter of 2009 compared to $3.1 million or $0.36 per share in the third quarter of 2008. Net cash provided by operating activities pre settlement payment was $5.7 million. For the quarter, the company reported income from continuing operations before income taxes of $2.8 million compared to income from continuing operations before income taxes of $5.5 million for the same period a year ago. Net sales for the nine month period ended September 30, 2009, were $289.5 million, a 23.5% decrease compared to net sales of $378.4 million for the prior year period. The operating loss for the first nine months of 2009 was $2.7 million compared to a loss of $15.4 million in 2008. Settlement and related costs, severance and unclaimed property charges, totaled $6.7 million in 2009 and $39.2 million in 2008. Excluding the effect of these charges, adjusted operating income for the first nine months of 2009 was $4.1 million as compared to adjusted operating income of $23.8 million in 2008. The company reported a net loss of $2.6 million or $0.30 per share of common stock in the first nine months of 2009, which compared to a net loss of $22.2 million or $2.61 per share in the first nine months of 2008. For the nine months, the company reported loss from continuing operations before income taxes of $2.2 million compared to loss from continuing operations before income taxes of $15.7 million for the same period a year ago.

Lawson Products Inc. announced that Mitchell H. Saranow, who has served as a director of the company since 1998, has advised the board of directors that he intends to retire from the board and will not stand for reelection at the next annual meeting of shareholders scheduled for December 8, 2009.

On October 20, 2009, the Board of Directors of Lawson Products Inc. elected Mr. Andrew B. Albert to serve on the Board to fill a vacancy. On October 20, 2009, the Board of Directors of the company approved an amendment and restatement of the company's current bylaws, effective immediately, in order to (i) update the information regarding the company's registered office and registered agent in the State of Delaware and (ii) clarify the provisions relating to the voting of the company common stock.