Rexel recorded sales of €3,153.9 million, down 2.3% on a reported basis and down 3.7% on a constant and same-day basis. Excluding the negative impact due to the change in copper-based cable prices, sales were down 3.1% on a constant and same-day basis.
Rudy Provoost, Chairman of the Management Board and CEO, said: “Rexel’s first quarter performance proved resilient in a challenging environment, excluding a strong negative calendar impact. Organic sales grew sequentially in comparison with the last quarter of 2012, driven by increased revenue in the recovering US market, while gross margin further improved year-on-year and operating costs were strictly controlled. We also further strengthened our balance-sheet by implementing a major refinancing of our debt, allowing us to extend its maturity and reduce its overall cost. The trend in organic sales is likely to remain negative in the second quarter, with an expected return to growth in the second half, helped by improving indicators in North America and fast-growing countries. On this basis, we confirm our full-year 2013 financial targets.”
The 2.3% drop in sales on a reported basis included:
- A negative currency effect of €18.5 million (mainly due to the appreciation of the US, Canadian, and Australian dollars, the Brazilian real and the British pound against the euro and partially offset by the depreciation of the Swedish Krona),
- A positive effect of €160.3 million from acquisitions, resulting from last year’s transactions,
- A negative calendar effect of 2.7 percentage points.
On a constant and same-day basis, sales reflected challenging conditions in Rexel’s end-markets:
- Slowing momentum in industry, except in the US were trends began to improve,
- Persistently low level of residential construction, with the exception of the US, where the residential end-market confirmed its recovery,
- Weak activity in the commercial end-market, impacted by the postponement of projects.
Europe (55% of Group sales): -5.5% on a constant and same-day basis
Sales in Europe decreased by 6.1% on a reported basis, including a positive effect of €49.9 million from the consolidation of Société Commerciale Toutelectric in France, Wilts in the UK, La Grange in Belgium and Erka in Spain. On a constant and actual-day basis, sales were down 8.5%, including a strong negative calendar impact of 3.0 percentage points. On a constant and same-day basis, sales evolution was
North America (34% of Group sales): +1.3% on a constant and same-day basis
Sales in North America were up 8.2% on a reported basis, including a negative effect of €9.4 million from exchange rates (USD and CAD against the euro) and a positive effect of €97.3 million resulting from the consolidation of Platt as from July 2012 and Munro as from December 2012. On a constant and actual-day basis, sales were down 0.6%, including a negative calendar impact of 1.9 percentage points.
On a constant and same-day basis, sales grew 1.3%:
- In the US, sales returned to growth, increasing by 2.8% in the quarter (vs. -1.2% in the previous quarter), confirming the recovery in the residential end-market and improved trends in industry. Excluding the impact of a drop in wind activity due to a change in tax incentives, sales were up 4.5%.
- In Canada, sales were down 2.5% (vs. -4.5% in the previous quarter), reflecting a slowdown in mining activities.
For the full release, please visit www.rexel.com.
