WESCO International sales decline 4.4 percent
WESCO International said its second-quarter net sales were $1.9 billion, a decrease of 4.4 % compared to $2.0 billion for the second quarter of 2014.
Normalized organic sales decreased 3.0%; foreign exchange rates negatively impacted sales by 3.0% and were partially offset by a 1.6% positive impact from acquisitions.
Net income of $51.8 million was down 24.8% from $68.9 million for the prior year quarter. Earnings per share declined to $1 per share compared to $1.29 in the same period last year.
"Our second quarter sales declined 4% reflecting continued foreign exchange headwinds and weakness in the industrial market as well as a slow seasonal start in the non-residential construction market. For the quarter, organic sales in the U.S. were flat while organic sales in Canada declined 7%," said John J. Engel, WESCO's chairman and chief executive officer. He added that "Business mix, rebate accruals, and a continued competitive pricing environment drove gross margin lower."
For the first six months of the year, net sales were $3.73 billion, compared to $3.81 billion for the first six months of 2014, a decrease of 2.2%.
"We expect reduced demand in commodity-driven end markets in the near term and foreign exchange headwinds to continue for the remainder of the year. Actions initiated in the second quarter to accelerate our One WESCO sales initiatives and simplify and streamline the business are expected to help improve profitability in the second half of the year," Engel said.
INDUSTRIAL SUPPLY MAGAZINE
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