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Rexel Reports 2014 Earnings In Line With Expectations

Rudy Provoost, Chairman and CEO of Rexel, announced on February 12, 2015, that Rexel was able to hit the numbers it targeted 7 months ago.

“Rexel’s 2014 results were in line with the targets we announced in July: we posted organic sales growth of 1%, our margin stood at 5% and we generated strong free cash flow,” Provoost announced. “With respect to the 2015 outlook, the current economic environment leads us to be cautious. In this context, we will relentlessly focus efforts and resources on our key drivers of profitable organic growth and operational efficiency, while completing our business transformation program and reinforcing our market positions. In that respect, targeted bolt-on acquisitions should continue to fuel our growth.”

“We are also taking measures to rationalize our business portfolio and are streamlining the European management structure to further increase our organizational effectiveness. Reflecting our confidence in the soundness of our business model, we will propose to our shareholders to maintain the dividend to be paid in 2015 at last year’s level of 0.75 euros per share,” Provoost announced.

In the fourth quarter of 2014, Rexel’s sales in North America were up 12.8%, including a positive currency effect of $78 million (mainly due to the appreciation of the USD against the euro) and were up 5.1% on a constant and same-day basis.¬†Also, U.S.¬†sales grew by 5.6% in the quarter, confirming the recovery in non-residential construction (around 50% of Rexel’s US sales) and reflecting a strong increase in photovoltaic sales (+20%).

In Canada, sales were up 3.5% in the quarter, reflecting gradual recovery in project activity.

Rexel is also expecting to see what it calls “solid growth” in U.S. sales in 2015, driven by continued recovery in the non-residential construction.

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