Rexel reports third quarter results

Rexel SA (RXL:EN Paris) of Paris reported third quarter sales growth of 7.2% compared to the same period in 2011 and 6.8% growth in sales for the first nine months of 2012 (compared to the same period last year). Crediting acquisitions, consolidation, and a positive currency effect for creating the gains, the company recorded sales of €3,441.3 million ($4.46 billion USD) during the third quarter.

A distributor of automation, technical supply and energy management products, Rexel recorded sales of €10,009.4 million ($13 billion USD), up 6.8% on a reported basis and down 0.8% on a constant and same-day basis, during the first nine months of 2012. Excluding the negative 0.9 percentage point impact due to the change in copper-based cable prices, the company’s sales were slightly up (+0.1 percent) on a constant and same-day basis.

Also in Rexel’s recent earnings report, the company revealed that the firm’s CFO Michel Favre would step down in the coming months due to the firm’s third-quarter results. A Reuters report highlighted the fact that Rexel’s third quarter like-for-like sales were down 3.6% and that company shares retreated by 7.5% on the news that Favre would be stepping down.

In the third quarter, Rexel’s European sales decreased by 0.7% on a reported basis, including a positive impact of €67.8 million ($87.88 million USD) from the consolidation of Eurodis and Toutelectric in France, Wilts in the UK, La Grange in Belgium and Erka in Spain.

In a press release, Rexel said Southern European countries posted a decline of 11.8% in Q3, largely due to the continued poor performance of Spain (-16.8 percent) and Italy (- 8.4 percent), while Portugal posted an increase of 4.6%, helped by export activity.

North America, which represents 32% of the firm’s group sales, was up 0.1% in the third quarter and 3.2% during the first nine months of the year on a constant and same-day basis. In the U.S., Rexel’s sales fell 1.8% during the third quarter compared to the same period in 2011. In Canada, sales were up 5.0%.

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