John J. Engel, WESCO’s Chairman, President and CEO commented, “We were pleased with our improving sales growth in the second and third quarters, and our fourth quarter has continued the positive momentum. October and November organic sales per workday grew 5% and 8%, respectively. As a result, we reaffirm our full year outlook of approximately 5% sales growth and $5.25 to $5.35 earnings per diluted share, although at the lower end of the range.”
Mr. Engel continued, “We remain sharply focused on executing our One WESCO strategy to deliver above-market sales growth, improve profitability, and increase shareholder value. With our new organization in place and improving economic conditions anticipated in North America, we expect sales growth of 3% to 6% and EPS of $5.50 to $5.90 per diluted share in 2015. Our acquisition pipeline remains robust, and we see excellent ongoing opportunities to strengthen our electrical core and broaden our portfolio of products and services. We are also pleased to announce a share repurchase program starting early next year. The free cash flow generation capability of our business supports continued investment in our growth initiatives, including acquisitions, while providing a return of capital to shareholders.”
Ken Parks, WESCO’s Senior Vice President and Chief Financial Officer stated, “The new share repurchase authorization of up to $300 million over the next three years demonstrates confidence in our long-term growth outlook and a commitment to delivering value to shareholders through disciplined cash utilization. The strength and size of our free cash flow generation provide us with the flexibility to grow organically, make accretive acquisitions, and repurchase shares of common stock while maintaining leverage within our target levels.”
The Company may utilize various methods to effect repurchases of its common stock under the repurchase program, which could include open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some of which may be effected through Rule 10b5-1 plans. The timing of any repurchases will depend upon several factors, including market and business conditions, and repurchases may be discontinued at any time.
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