Anixter International reported its 2016 third quarter financial results on Tuesday, led by a 31 percent year-over-year sales increase.
Anixter's Q3 sales of $1.96 billion were up from $1.49 billion a year ago, as the spike reflects the company's $825 million acquisition of HD Supply's Power Solutions segment last year, which boosted Q3 sales by $533.5 million.
Excluding the impact of Power Solutions and unfavorable impacts from lower copper prices and currency headwinds, Anixter's organic sales declined 2.3 percent year-over-year. Organic sales per day decreased 0.7 percent. The company's total profit of $40.3 million was up 14 percent from $35.4 million a year earlier, while operating profit increased 12 percent.
Anixter's Network & Security Solutions segment saw sales of $1.0 billion increased by 0.3 percent year-over-year, with organic sales down 0.7 percent. Electrical & Electronic Solutions sales of $535.1 million increased 26.3 percent, with organic sales down 3.1 percent. Utility Power Solutions sales of $371.3 million increased 4.3 percent.
"As we enter the fourth quarter of 2016, we expect the positive momentum in our NSS segment, driven by strength in projects with global customers, to continue," commented Bob Eck, Anixter president and CEO. "While our EES segment continues to experience weakness related to industrial and manufacturing end market exposure, we are cautiously optimistic that this segment will return to growth in the fourth quarter based on recent sales trends."
Anixter is forecasting full year 2016 sales growth of 21 to 22 percent, including a 24 percent favorable impact from the Power Solutions acquisition. Organic sales are forecasted to range from flat to negative 1 percent.