Pittsburgh-based WESCO International, No. 5 on Industrial Distribution's 2014 Big 50 List, reported its 2014 fourth quarter and year-end earnings information.
For the quarter, net sales increased 6.1 percent to $1.996 billion, organic sales increased 8.1 percent, while acquisitions positively impacted sales by 1.6 percent. Gross Q4 profit was $402.2 million, a 6.9 percent year-over-year gain. Operating profit was up 12.3 percent YOY to $124.2 million. Net income for the quarter jumped 28.4 percent to $74.5 million, while adjusted net income was up 11.2 percent to $67 million.
The company said its Q4 sales growth was WESCO's highest quarterly organic growth rate since Q2 2012, and that all four of its end markets and all all three geographic regions saw growth. The company said organic sales grew 5 percent in October, 8 percent in November, and 12 percent in December. Quarterly sales in the U.S. were up 10 percent, Canada sales were up 4 percent, and sales for the rest of the world gained 2 percent.
For the full year 2014, net sales increased 5 percent to $7.9 billion. Organic sales increased 5.6 percent — positively impacted 1.4 percent by acquisitions. Gross profit rose 4.2 percent to $1.61 billion, and operating profit gained 4.8 percent to $466.2 million. Net income for 2014 rose 4.4 percent to $275.9 million.
WESCO Chairman and CEO John Engel stated, "I am very proud of the sales results and extra effort delivered by all our associates working together as a One WESCO team serving our customers. We have significantly strengthened our business over the past year and enhanced our position in the global marketplace.
"Expanding operating margins is a top priority in 2015 as we continue to drive our One WESCO sales, productivity, and lean initiatives," Engel continued. "Our acquisition pipeline remains robust, and we see excellent opportunities to strengthen our electrical core and further expand our portfolio of products and services this year. As we outlined in our investor outlook call in December, we expect sales growth of 3 percent to 6 percent and EPS of $5.50 to $5.90 per diluted share in 2015."
