Posted January 28, 2010
Wesco's Q4 sales fall 20.8%
Wesco International reported that its fourth quarter consolidated net sales were $1.13 billion compared to $1.42 billion, a decline of 20.8% from a year ago.
Fourth quarter 2009 consolidated net sales were down 1.7% compared to third quarter 2009 levels. Gross profit was $217.0 million, or 19.2% of sales, compared to $284.4 million, or 19.9% of sales in the prior year period. Fourth quarter 2009 gross margin was equal to the third quarter 2009 gross margin. Net income for the quarter was $21.8 million compared to $39.7 million a year ago.
"We successfully closed a very challenging year having taken quick and decisive actions resulting in operating cost reductions of $140 million," said John J. Engel, CEO. "The economy appears to be in the bottoming process as we have experienced two consecutive quarters of stable sequential sales and margins. We are beginning to see signs of positive momentum in certain end markets with continued pressure in non-residential construction and utility."
For the year, consolidated net sales were $4.62 billion compared to $6.11 billion in 2008, a decline of 24.3%. Gross profit was $900 million, or 19.5% of sales, compared to $1.2 billion, or 19.7% of sales. Net income for the full year was $105 million compared to $204 million last year.
