Anixter reports 3% increase over last year’s fourth quarter

Anixter International Inc., (NYSE: AXE) of Glenview, Ill., reported record sales of $1.54 billion for the quarter ended December 28, 2012, a 3.0% increase compared to the year ago quarter. Organic sales growth, which excludes the impact of the following items, was flat year-over-year: $31.0 million of sales from the second quarter acquisition of Jorvex; $8.6 million from the favorable effect of foreign exchange; and $4.3 million from the favorable effect of copper pricing.

Anixter’s operating income of $38.6 million included pre-tax charges of $46.7 million attributable to the impairment of goodwill and long-lived assets of $15.3 million and $6.0 million, respectively, related to the change in reporting segments; a pension-related charge of $15.3 million; and a restructuring charge of $10.1 million.

After adjusting for the charges, Anixter’s operating income was $85.3 million compared to $91.6 million in the prior year period. Adjusted operating margin was 5.5% compared to 6.1% in the prior year period, driven primarily by a decrease in gross margin.

Adjusted earnings from the company’s continuing operations were $1.32 per diluted share compared to an adjusted $1.43 per diluted share in the year ago quarter. The current quarter excluded the previously mentioned charges totaling $1.16 per diluted share while the prior year quarter excluded the previously mentioned tax benefit equating to $0.06 per diluted share. The $0.11 year-over-year decline in adjusted earnings per diluted share was primarily a result of the challenging global economy.

“In light of uneven global growth, we were pleased to achieve record fourth quarter and full year sales,” said Bob Eck, president and CEO. “This strong performance was driven by record sales in several areas of the business including Security Solutions, which continued to grow at a double digit rate to exceed $1 billion of sales for the year. Our ongoing focus on cost and balance sheet management enabled us to deliver solid operating performance and cash flow.”

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