Rexel’s 2Q sales rise 3.5 percent

Industrial Distribution staff -- Industrial Distribution, 7/31/2008 7:43:00 AM

Second-quarter sales for Rexel rose to $5.42 billion, up 3.5 percent compared with $5.24 billion during the same period last year.

Net income for the French electrical distributor surged 93.7 percent to $307 million, compared with $158.5 million during the second quarter of 2007, on its acquisition of Dutch rival Hagemeyer.

The results included the sale of some of the former Hagemeyer assets to French peer Sonepar, including an “asset swap” of Rexel’s German operations for Sonepar’s Swedish business.

“The integration of Hagemeyer’s European activities in Q2 allowed Rexel to begin benefiting from initial cost synergies. With activity slowing down in the construction end-market in the U.S. and several European countries, Rexel continues to focus on adjusting its cost base while accelerating gains from its enhanced European platform and allocating its resources to higher-growth market segments,” chairman and CEO Jean-Charles Pauze said.

The consummation of the roughly $4.6 billion deal leaves Rexel with Hagemeyer’s former Professional Products & Services division operations in Belgium, the Czech Republic, Estonia, Finland, Latvia, Lithuania, The Netherlands, Norway, Poland, Russia, Spain, the United Kingdom and Germany (excluding six branches there).

The provisions of the sale also include an anti-trust requirement by the European Commission that Rexel sell off Hagemeyer’s former electrical distribution business in Ireland, Eastern Electrical (which posted sales of roughly $45 million last year) to EWL Electric Ltd.

Rexel said it also closed four acquisitions since the end of the second quarter, adding annual sales of about $77 million: Two in France, one in New Zealand and one in the Netherlands.

Rexel ranked first on INDUSTRIAL DISTRIBUTION's 2008 Top 10 List of Electrical Distributors, with 2007 sales of $14.7 billion.

Sonepar ranked second on the list, posting sales of $14.4 billion last year.

Talkback

We would love your feedback!

Post a comment

» VIEW ALL TALKBACK THREADS

Related Content

• Topics
• Author

Related Content

 

By This Author

• Hobart Brothers Co. plans Ohio expansion
• Manufacturing’s 2Q productivity slides 2.2 percent
• Parker Hannifin buys German composites manufacturer
• Eurazeo looks to up stake in Rexel
• Fastenal’s August sales rise 6 percent
• » MORE

Sponsored Links