Distributors

WESCO achieves record 2012 sales

WESCO International, Inc. (NYSE: WCC) posted consolidated net sales of $1,644.4 million for the fourth quarter of 2012, compared to $1,589.5 million for the fourth quarter of 2011, representing an increase of 3.5%.

The Pittsburgh, Pa.-based distributor of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services reports that acquisitions and foreign exchange positively impacted consolidated sales by approximately 4.3% and 0.5%, respective. The firm’s organic growth rate was approximately -1.3% for the fourth quarter and its sales decreased 0.7% during that period.

WESCO’s gross profit of $337.3 million, or 20.5% of sales, for the fourth quarter of 2012 was down 10 basis points, compared to $328.0 million (or 20.6% of sales), for the same period in 2011. Operating profit was $86.4 million for the current quarter, down 5.6% from $91.5 million for the comparable 2011 quarter. Operating profit as a percentage of sales was 5.3% in 2012, down 50 basis points from 5.8% in 2011.

Earnings per diluted share for the fourth quarter of 2012 were $0.95 per share, based on 51.4 million diluted shares, down 15.2% from $1.12 per diluted share in the fourth quarter of 2011. WESCO’s free cash flow for the fourth quarter of was $94.9 million compared to $86.4 million for 2011.

“Our fourth quarter results reflect solid execution in a challenging economic environment and a continuation of the market trends experienced in the third quarter,” said John J. Engel, WESCO’s chairman and CEO, in a press release. “We continued to see the positive impact of our productivity and lean initiatives in gross margins, operating costs, and free cash flow, excluding the non-recurring acquisition and debt extinguishment costs.”

Engel also mentioned that WESCO’s completed acquisition of EECOL Electric in mid-December strengthened the distributor’s Canadian operations and “establishes a solid foundation for WESCO in South America.”

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