PITTSBURGH — WESCO International, Inc. reaffirms its 2016 outlook and provides its 2017 outlook.
John J. Engel, WESCO’s Chairman, President and CEO, commented, “Our fourth quarter results to date are in line with the expectations we outlined in our third quarter earnings call. We reaffirm our full year 2016 outlook of a 2% to 3% sales decline, $3.75 to $3.90 adjusted earnings per diluted share, and free cash flow generation of at least 125% of adjusted net income.”
Engel continued, “We expect modest improvement in our end markets next year. Our 2017 outlook includes improved execution of our growth initiatives and investing for the future, while maintaining our cost and cash management discipline. We believe we are well-positioned to benefit from the potential tax, regulatory, and budget changes associated with the new administration in the United States, but do not anticipate a significant impact on our business next year. As a result, we expect sales in the range of flat to up 4%, EPS of $3.60 to $4.00 per diluted share, and free cash flow generation of at least 90% of net income in 2017.
We remain clearly focused on executing our One WESCO strategy to deliver above-market sales growth, improve profitability, generate strong cash flow, and increase shareholder value. Our acquisition pipeline remains robust, and we see excellent ongoing opportunities to strengthen our electrical core and broaden our portfolio of products and services. The free cash flow generation capability of our business supports continued investment in our One WESCO growth initiatives, including acquisitions, while providing a return of capital to shareholders.”
Adjusted net income and adjusted earnings per diluted share exclude the third quarter 2016 loss of $123.9M and related income tax benefit of $41.2M resulting from the redemption of the Company’s 6.0% Convertible Senior Debentures due 2029, which, based on a diluted share count of 48.7M, equates to a loss per diluted share of approximately $1.70.
Tagged with 2017, tED, wesco