Anixter International Inc. (NYSE: AXE) reported sales of $1.56 billion for the quarter ended September 27, 2013, a 3.2 percent decrease compared to the year ago quarter. The year-over-year reported sales decline would have been approximately 2.7 percent excluding the negative impact of the previously reported conclusion of a large security solutions contract in the fourth quarter of 2012. Organic sales, which excludes the impact of the following two items, declined by 2.2 percent year-over-year:
Anixter’s third quarter results included a net $4.7 million after-tax benefit primarily related to closing prior tax years and related interest. Its third quarter of 2012 results included an impairment charge of $27.2 million and an inventory lower-of-cost-or-market adjustment of $1.2 million, resulting in a total non-cash pre-tax charge of $28.4 million (after-tax $27.4 million).
Adjusted earnings per diluted share from continuing operations of $1.52 compares to $1.43 in the year ago quarter, according to a company press release, and current quarter adjusted earnings per diluted share of $1.52 also includes an unfavorable impact of the lower average price of copper of $0.04 per diluted share.
“Overall the third quarter was challenging, as we experienced an uneven recovery in global markets,” said Bob Eck, president and CEO, in the press release. “Nevertheless we are encouraged by the significant improvement in sales and profitability in our OEM Supply segment, sales growth in all three segments in Europe, and improving margin trends in all segments. Even in a slow growth environment we have demonstrated the discipline to manage through short term challenges while continuing to invest for long term growth.”
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