GLENVIEW, Ill.—Anixter International Inc. (NYSE: AXE) today reported quarterly sales of $1.49 billion for the quarter ended October 2, 2015, a 3.6 percent increase compared to the year-ago quarter. Adjusting for the favorable impact from the third quarter 2014 acquisition of Tri-Ed and the unfavorable impacts of the stronger US dollar and weaker average copper prices, organic sales increased 0.7 percent year-over-year.
Profit was down 22 percent, to $35.4 million. Electrical and Electronic Wire & Cable (“W&C”) adjusted operating profit was down 28.6 percent at $27.6 million compared to $38.7 million in the prior year quarter. Anixter cites lower copper prices, currency headwinds, and weaker macro environment for the drop. W&C sales of $453.8 million compares to $534.1 million in the prior year period, a 15.0 percent decrease.
Adjusted EBITDA of $99.8 million, or 6.7 percent of sales, compares to $98.6 million, or 6.9 percent of sales, in the prior year quarter.
Adjusted net income of $40.4 million compares to $48.5 million in the prior year quarter. Versus the prior year, currency and copper had a negative impact on operating profit of $5.2 million, net of tax, and foreign exchange added incremental losses of $1.4 million, net of tax, compared to the prior year.
Adjusted earnings per diluted share of $1.21 compares to $1.46 in the prior year quarter. Current year earnings were negatively impacted by $0.20 from the currency and copper impact.
“Our ECS segment achieved record quarterly sales exceeding $1 billion, a 15 percent increase from the prior year quarter, reflecting the Tri-Ed acquisition and an acceleration in our EMEA and emerging markets geographies. Strong volume growth combined with effective expense management led to increased margin in ECS,” commented Bob Eck, President and CEO. “Our W&C segment continued to experience weaker trends, reflecting lower copper prices as well as exposure to energy and weaker industrial projects.”Tagged with tED