PITTSBURGH — WESCO International, Inc. reaffirms its 2017 outlook, announces a new share repurchase authorization to replace the existing authorization expiring at the end of 2017, and provides its 2018 outlook.
John J. Engel, WESCO’s Chairman, President and CEO, commented, “We are pleased with the continued positive momentum in our business in the fourth quarter and our return to sales growth this year. We reaffirm our full year 2017 outlook of 3% to 4% sales growth, diluted EPS of $3.75 to $3.95, and free cash flow generation of at least 90% of net income.”
Engel continued, “We expect favorable conditions and positive growth in our end markets to continue in 2018. Our outlook includes above-market performance, execution of our profitable growth initiatives, investments in our people and processes, and maintaining our cost and cash management discipline. As a result, we expect sales growth in the range of 3% to 6%, EPS of $4.05 to $4.55 per diluted share, and free cash flow generation of at least 90% of net income in 2018. In addition, we believe we are well-positioned to benefit from the U.S. tax reform proposals now being considered by Congress; however, this benefit has not been reflected in our outlook.
We remain focused on delivering above-market sales growth, improving profitability, generating strong cash flow, and increasing shareholder value. The free cash flow generation capability of our business supports continued investment in our differentiated, services-oriented business model and One WESCO growth initiatives, including acquisitions, while providing us with the ability to return capital to our shareholders. Our efforts remain centered on providing excellent customer service and delivering value to our customers’ operations and supply chains by providing comprehensive product and service solutions that meet their capital project, MRO and OEM needs.”
Dave Schulz, WESCO’s Senior Vice President and Chief Financial Officer, added, “The new share repurchase authorization of up to $300 million over the next three years demonstrates confidence in our long-term growth outlook and in our ability to continue to generate strong and consistent free cash flow.”
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