PITTSBURGH (AP) — WESCO International Inc. (WCC) on Thursday reported first-quarter profit of $47 million.
The Pittsburgh-based company said it had profit of 90 cents per share.
The results did not meet Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of $1.01 per share.
The maker of electrical and industrial maintenance supplies and construction materials posted revenue of $1.82 billion in the period, which also did not meet Street forecasts. Nine analysts surveyed by Zacks expected $1.9 billion.
WESCO International shares have declined 8 percent since the beginning of the year. The stock has dropped 19 percent in the last 12 months.
Mr. John J. Engel, WESCO’s Chairman and Chief Executive Officer, stated, “We had a challenging start to the year where reduced demand in the industrial market, winter weather impacts, and foreign exchange headwinds weighed heavily on our results in the first quarter. Based upon our first quarter results, we are revising our full year outlook to (3)% to 3% sales growth and$5.00 to $5.40 earnings per diluted share from our previous outlook of 0% to 3% sales growth and $5.20 to $5.60 earnings per diluted share.”
Mr. Engel continued, “We expect reduced demand in commodity-driven industrial end markets and foreign exchange headwinds to continue throughout this year. As a result, we are taking additional actions to accelerate our One WESCO sales initiatives and simplify and streamline our business. These additional mitigating actions include consolidating a series of branches and reducing structural costs while adding to our salesforce to address underserved territories and customer accounts. Our One WESCO strategy continues to drive our long term value proposition, particularly for customers looking to reduce their supply chain costs.”
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