Rexel’s Sales Retreat During Second Quarter

Citing challenging market conditions in Europe, Paris-based Rexex recorded sales of 3,314.9 million EUR ($4.38 billion USD) for the second quarter of 2013, down 0.8% on a reported basis and down 3.3% on a constant and same-day basis. Excluding the negative impact due to the change in copper-based cable prices, company sales were down 2.3% on a constant and same-day basis.

According to a company press release, an 0.8% drop in sales on a reported basis included a negative currency effect of €44.5 million ($58.8 million USD), a positive effect of €120.1 million ($159 million USD) from last year’s acquisitions, and a slightly positive calendar effect of 0.3 percentage points.

For the first half of the year, Rexel’s recorded sales of €6,468.8 million ($8.5 billion USD) were down 1.5% on a reported basis and down 3.5% on a constant and same-day basis, compared to the same period in 2012. Excluding the negative impact due to the change in copper-based cable prices, the firm’s sales were down 2.7% on a constant and same-day basis. In the second quarter, Rexel’s European sales decreased by 5.1% on a reported basis.

“Rexel’s performance in the second quarter remained very resilient,” said Rudy Provoost, CEO and chairman of the management board, in a press release. “We posted continued sales growth in the United States, China and Brazil and delivered solid margins and cash-flow. In addition, the implementation of our energy in motion strategy resulted in significant growth in key areas, such as energy efficiency and international projects and customers.”

Provoost went on to say that Rexel expects market conditions to remain challenging through the remainder of the year, particularly in Europe and in the Pacific, and assume no rebound in copper prices. “Consequently, we have updated our full-year outlook,” said Provoost. “Despite an expected decrease in organic sales, our profitability will remain robust, thanks to ongoing margin discipline and strict cost control. Moreover, we confirm our full-year free cash flow target.”