Pittsburgh-based MRO and OEM distributor WESCO International – No. 5 on Industrial Distribution's 2014 Big 50 List – reported its 2015 second quarter financial earnings on Thursday for the period ended June 30.
The company had total sales of $1.92 billion, down 4.4 percent from Q2 2014. Organic sales decreased 3.0 percent, with foreign exchange rates negatively impacting sales by 3.0 percent, offset by a 1.6 percent positive impact from acquisitions. Sales were up 5.5 percent from Q1's $1.82 billion.
Total profit for the quarter was $51.8 million, down 28.0 percent from a year ago, and up 10.2 percent from Q1. Operating profit of $90.3 million was up 3.6 percent.
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WESCO said the year-over-year sales decline reflected ongoing foreign exchange headwinds and overall weakness in the industrial market, combined with a slow seasonal start in the non-residential construction market.
The company said organic sales in the U.S. were flat, while they declined 7 percent in Canada.
The company issues a revised full year outlook, projecting a sales range of 3 percent decline to flat, down from a previous outlook of -3 percent decline to 3 percent growth.
WESCO also reported its earnings for the six month period. Total sales were $3.73 billion, down 2.2 percent from last year, with organic sales down 0.1 percent. Total profit of $98.7 million was down 18.2 percent from last year, with operating profit of $177.4 million down 15.0 percent.
"We expect reduced demand in commodity-driven end markets in the near term and foreign exchange headwinds to continue for the remainder of the year," said John Engel, WESCO Chairman and CEO. "Actions initiated in the second quarter to accelerate our One WESCO sales initiatives and simplify and streamline the business are expected to help improve profitability in the second half of the year. We are pleased with the acquisition of Hill Country in the second quarter, and they are off to a solid start. Our capital structure is in good shape, and we will continue to take a disciplined approach to supplement our growth strategy by strengthening our electrical core and expanding our portfolio of products and services through acquisitions."
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