WESCO International, Inc. (NYSE: WCC), a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services, posted net sales of $2,078.2 million for the third quarter of 2014. The company posted a sales increase of 7.6 percent over its $1,931.3 sales for the same period in 2013.
WESCO’s gross profit was $422.4 million, or 20.3 percent of sales, for the third quarter of 2014, compared to $395.7 million, or 20.5 percent of sales, for the third quarter of 2013. The distributor’s selling, general & administrative (SG&A) expenses were $271.8 million, or 13.1 percent of sales, for the third quarter of 2014, compared to $255.2 million, or 13.2 percent of sales, for the third quarter of 2013.
Operating profit for the company was $133.2 million for the current quarter, compared to $123.7 million for the third quarter of 2013. Operating profit as a percentage of sales was 6.4 percent in 2014 and 2013. WESCO’s earnings per diluted share for the third quarter of 2014 were $1.52 per share, based on 53.2 million diluted shares, compared to $1.32 per share in the third quarter of 2013, based on 52.5 million diluted shares.
“Our third quarter results reflect strong sales execution and continued improvement in our end markets,” said John J. Engel, WESCO’s Chairman and CEO, in a press release. “Organic sales grew 7 percent with growth accelerating through the quarter. Sales were up in all four of our end markets for the second consecutive quarter. Organically, U.S. sales grew 8 percent while Canada sales grew 5 percent.”
During the third quarter, WESCO’s operating margin expanded to 6.4 percent, increasing 60 basis points sequentially, and reflected good operating cost leverage. Free cash flow was also strong at $85 million or 105 percent of the firm’s net income. “We continue to see favorable momentum in our customer base,” Engel stated, in the press release, “including strengthening in non-residential construction, which we expect will result in ongoing growth in our key markets.”
WESCO’s net sales were $5,894.1 million for the first nine months of 2014, compared to $5,633.3 million for the first nine months of 2013, an increase of 4.6 percent. Acquisitions positively impacted sales by 1.3 percent, organic sales increased 4.8 percent, and foreign exchange negatively impacted sales by 1.5 percent.
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