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WESCO Posts Record Annual Sales for 2014

WESCO International, Inc. (NYSE: WCC), posted net sales were $1,995.5 million for the fourth quarter of 2014, compared to $1,880.1 million for the fourth quarter of 2013, an increase of 6.1 percent. The company’s organic sales increased 8.1 percent, acquisitions positively impacted sales by 1.6 percent, and foreign exchange and number of workdays negatively impacted sales by 2.0 percent and 1.6 percent, respectively. Adjusting for the workday impact in the quarter, organic sales were flat sequentially.

WESCO’s gross profit during the fourth quarter was $402.2 million, or 20.2 percent of sales, compared to $376.2 million, or 20.0 percent of sales, for the fourth quarter of 2013. The company’s operating profit was $124.2 million for the fourth quarter, up 12.3 percent from $110.6 million for the comparable 2013 quarter. Operating profit as a percentage of sales was 6.2 percent and 5.9 percent in 2014 and 2013, respectively.

According to a company press release, net income attributable to WESCO International, Inc., of $74.5 million for the current quarter was up 28.4 percent from $58.0 million for the prior year quarter. Compared to adjusted net income attributable to WESCO International, Inc., of $67.0 million for the fourth quarter of 2013, the current quarter was up 11.2 percent.

WESCO’s earnings per diluted share for the fourth quarter of 2014 were $1.40 per share, based on 53.0 million diluted shares, compared to adjusted earnings per diluted share of $1.26 in the fourth quarter of 2013, based on 53.2 million diluted shares. 

“Our fourth quarter sales grew 8 percent, our highest quarterly organic growth rate since the second quarter of 2012, reflecting growth in all four of our end markets and in all three of our geographic regions,” said John J. Engel, chairman and CEO, in the company press release. “Organic sales accelerated through the quarter with October up 5 percent, November up 8 percent, and December up 12 percent.”

According to Engel, WESCO’s U.S. sales were up 10 percent, while sales in Canada grew by 4 percent, and sales for the rest of the world increased by 2 percent. “On a full year basis, we posted record sales, profitability, and earnings per share,” said Engel.

For the year ended December 31, 2014, WESCO’s net sales were $7,889.6 million, compared to $7,513.3 million for 2013, an increase of 5.0 percent. Organic sales increased 5.6 percent, acquisitions positively impacted sales by 1.4 percent, and foreign exchange and number of workdays negatively impacted sales by 1.6 percent and 0.4 percent, respectively. WESCO’s gross profit of $1,611.0 million, or 20.4 percent of sales, for 2014 increased $65.6 million from $1,545.4 million, or 20.6 percent of sales, for the same period in 2013.

For 2014, WESCO’s earnings per diluted share were $5.18 per share, based on 53.3 million diluted shares, compared to adjusted earnings per diluted share of $5.02 per share for 2013, based on 52.7 million diluted shares. The company’s free cash flow for 2014 was $230.6 million, or 84 percent of net income, compared to $308.4 million in 2013.   

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