WESCO International 3Q sales drop 7.4%
WESCO International said its net sales were $1.92 billion for the third quarter of 2015, compared to $2.07 billion for the third quarter of 2014, a decrease of 7.4%.
Normalized organic sales decreased 5.3%; foreign exchange rates negatively impacted sales by 4.1% and were partially offset by a 2.0% positive impact from acquisitions. Sequentially, net sales and normalized organic sales increased 0.4%.
Net income of $63.5 million was down 21.4% from $80.8 million for the prior year quarter.
Earnings per diluted share for the third quarter of 2015 was $1.28 per share, compared to $1.52 per share in the third quarter of 2014.
"Our third quarter sales declined 7% reflecting continued foreign exchange headwinds and weakness in the industrial market and certain non-residential construction sectors. Organic sales momentum decelerated during the quarter in the U.S. and in Canada, down 4% and 10% year over year, respectively. While the top line remains pressured overall, our data communications and utility sales continued to grow," said John J. Engel, chairman and chief executive officer.
"We expect reduced demand in commodity-driven end markets and foreign exchange headwinds to continue into 2016. The completion of cost reduction actions initiated in the second quarter are improving our second half profitability. We are continuing to simplify and streamline the business in the fourth quarter by reducing management structure and expect these changes to further improve our operational effectiveness while reducing costs in 2016," Engel added.
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