PR Newswire
PITTSBURGH, July 27, 2017
PITTSBURGH, July 27, 2017 /PRNewswire/ -- 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, announces its results for the second quarter of 2017.
Mr. John J. Engel, WESCO's Chairman, President and CEO, commented, "Our second quarter results were in line with the outlook we provided in April. Notably, we returned to organic sales growth in the quarter, after eight consecutive quarters of sales declines, driven by growth in our Industrial and CIG end markets as well as in our Canadian and International businesses. Our sales momentum accelerated as the quarter progressed, and this trend has continued into July, with all geographies growing to start the third quarter. Backlog grew sequentially in the quarter versus the typical seasonal decline, with June marking the highest monthly backlog since 2012. Operating margin was also in line with our expectations, as we continue to execute our cost management and supply chain initiatives to mitigate the effects of a still-challenging and demand-constrained pricing environment. Additionally, during the quarter, we repurchased $50 million of shares, while remaining within our targeted financial leverage band.
The first half has developed as we expected, and we are encouraged with the improving momentum of our business. Our technical capabilities and service offerings promote loyal customer relationships and growth. In the second half, as our expected growth accelerates, we plan to invest to strengthen our differentiated business model and improve our competitive advantage in 2018 and beyond. Based upon our first half results and our plan for the second half, we have narrowed our full-year expectations for sales to be up 1% to 3%, operating margin to be 4.1% to 4.3%, and EPS to be $3.60 to $3.90 per diluted share with an effective tax rate of approximately 27%. We continue to expect free cash flow generation for the year to be at least 90% of net income."
The following are results for the three months ended June 30, 2017 compared to the three months ended June 30, 2016:
The following are results for the six months ended June 30, 2017 compared to the six months ended June 30, 2016:
Mr. Engel continued, "We remain focused on executing our strategies to deliver above-market sales growth, improve profitability, generate strong cash flow, and increase 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."
Webcast and Teleconference Access
WESCO will conduct a webcast and teleconference to discuss the second quarter earnings as described in this News Release on Thursday, July 27, 2017, at 10:00 a.m. E.T. The call will be broadcast live over the internet and can be accessed from the Company's website at http://www.wesco.com. The call will be archived on this internet site for seven days.
WESCO International, Inc. (NYSE: WCC), a publicly traded Fortune 500 holding company headquartered in Pittsburgh, Pennsylvania, is a leading provider of electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturers (OEM) products, construction materials, and advanced supply chain management and logistic services. 2016 annual sales were approximately $7.3 billion. The company employs approximately 9,000 people, maintains relationships with over 25,000 suppliers, and serves approximately 75,000 active customers worldwide. Customers include commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers, and utilities. WESCO operates nine fully automated distribution centers and approximately 500 full-service branches in North America and international markets, providing a local presence for customers and a global network to serve multi-location businesses and multi-national corporations.
The matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. Certain of these risks are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as well as the Company's other reports filed with the Securities and Exchange Commission.
WESCO INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollar amounts in millions, except per share amounts) (Unaudited) | |||||||||||
| |||||||||||
| Three Months Ended | | |||||||||
| June 30, | | | June 30, | | ||||||
Net sales | $ | 1,909.6 | | | | $ | 1,911.6 | | | ||
Cost of goods sold (excluding | 1,543.5 | | 80.8 | % | | 1,532.1 | | 80.1 | % | ||
depreciation and amortization) | | | | | | ||||||
Selling, general and administrative expenses | 267.3 | | 14.0 | % | | 274.5 | | 14.4 | % | ||
Depreciation and amortization | 15.7 | | | | 17.0 | | | ||||
Income from operations | 83.1 | | 4.4 | % | | 88.0 | | 4.6 | % | ||
Interest expense, net | 16.8 | | | | 19.5 | | | ||||
Income before income taxes | 66.3 | | 3.5 | % | | 68.5 | | 3.6 | % | ||
Provision for income taxes | 16.8 | | | | 18.6 | | | ||||
Net income | 49.5 | | 2.6 | % | | 49.9 | | 2.6 | % | ||
Net income attributable to noncontrolling interests | — | | | | 0.1 | | | ||||
Net income attributable to WESCO International, Inc. | $ | 49.5 | | 2.6 | % | | $ | 49.8 | | 2.6 | % |
| | | | | | ||||||
Earnings per diluted common share | $ | 1.02 | | | | $ | 1.02 | | | ||
Weighted-average common shares outstanding and common | | | | | | ||||||
share equivalents used in computing earnings per diluted | | | | | | ||||||
share (in millions) | 48.8 | | | | 48.6 | | |
WESCO INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollar amounts in millions, except per share amounts) (Unaudited) Werbung Mehr Nachrichten zur WESCO International, Inc Aktie kostenlos abonnieren
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