Rexel SA (RXL:EN Paris) of Paris reported second quarter sales of €3,220.3 million ($4.3 billion USD), up 0.6 percent on a constant and same-day basis and down 2.9 percent on a reported basis. Rexel’s sales during the second quarter represented a slight, sequential improvement over the 0.4 percent growth recorded during the first quarter of this year. According to a company press release, the automation distributor’s sales increase was driven by solid performance in North America.
Excluding an 0.8 percent negative impact due to the change in copper-based cable prices, Rexel’s sales were up 1.3 percent on a constant and same-day basis, in line with the previous quarter. In the second quarter, sales in Europe were stable on a constant and same-day basis. North America (33% of group sales) increased by 3 percent during the quarter and by 0.2 percent for the first half of 2014.
According to Rexel, second quarter sales in North America were down 4 percent. In the U.S., sales increased by 2.8 percent in the quarter, reflecting sustained activity in the residential and industrial end-markets. Canadian sales increased by 3.5 percent and Asia-Pacific sales were down by 3.2 percent.
“In the first half [of the year], Rexel posted slight organic sales growth in an environment that remained globally challenging and uncertain,” said Rudy Provoost, chairman and CEO, in the press release.
“Gross margin was impacted by unfavorable geographic mix and higher project activity,” Provoost continued. “While we continued to be disciplined in operational cost control, business transformation costs related to the implementation of strategic projects increased in a few key countries, as well as investments in high-growth initiatives.”Tagged with tED