We're in the midst of another fiscal earnings reporting period, with many well-known industrial distributors and suppliers posting their latest quarterly performance. Here's a roundup of the key figures posted by Anixter International, 3M and Illinois Tool Works.
Electrical and wire products distributor Anixter International reported its 2017 second quarter fiscal results on Tuesday, led by a modest increase in total and organic sales that was powered its Utility Power Solutions segment.
The company posted Q2 sales of $2.0 billion, up 2.3 percent year-over-year, while organic sales increased 2.6 percent. Total profit of $40.1 million was nearly double that of $20.8 million in 2016, while adjusted profit of $46.2 million was a 4.3 percent increase from a year ago.
By business segment in Q2:
Network & Security Solutions sales of $1.03 billion decreased 1.5 percent year-over-year, while organic sales dipped 0.8 percent. The company said the declines reflect fewer large projects in the quarter compared to a y ear earlier. Sequentially, sales increased 4.5 percent from Q1. Operating profit of $64.9 million was flat year-over-year.
Electrical & Electronic Solutions sales of $561.5 million increased 1.1 percent year-overyear, while organic sales ticked up 0.3 percent. Operating profit of $29.6 million improved from $23.9 million a year earlier.
Utility Power Solutions sales of $410.5 million increased 15.3 percent year-over-year, while organic sales jumped 15.8 percent. Operating profit of $21.3 million increased from $12.0 million a year earlier, and $16.2 million in Q1.
Geographically, total sales grew 8.3 percent in Asia Pacific, 2.5 percent in Latin America/Canada, and 0.5 percent in the U.S.; Total sales declined 3.6 percent in EMEA (Europe, Middle East and Africa). Organic local-currency sales increased 10.0 percent in Asia Pacific, 3.7 percent in Latin America/Canada and 1.9 percent in the U.S.; organic local-currency sales declined 1.6 percent in EMEA.
"Against a backdrop of slow economic growth and a gradually improving global economy, end market recovery remains uneven, with strength in our growth initiatives, such as global accounts and security, offsetting more challenging industrial markets" commented Anixter CEO Bob Eck.
Manufacturing conglomerate 3M posted its Q2 results on Tuesday, which included modest sales growth for its Industrial group, and the company overall.
The St. Paul, MN-based company posted total sales of $7.8 million, up 1.9 percent year-over-year, while total profit of $1.6 million was 22.6 percent higher than a year earlier.
Organic sales grew across all five business segments, while four of them grew total sales.
- Electronics and Energy total sales grew 7.5 percent, and grew 8.4 percent organically
- Industrial total sales grew 2.5 percent, and grew 3.8 percent organically
- Health Care total sales grew 1.8 percent, and grew 2.5 percent organically
- Consumer total sales grew 0.5 percent, and grew 0.7 percent organically
- Safety and Graphics total sales declined 0.9 percent, and grew 3.2 percent organically
The company's Q2 Industrial sales of $2.7 billion increased 2.5 percent year-over-year, powered by growth in advanced materials, automotive and aerospace solutions and industrial adhesives and tapes, while separation and purification sciences declined.
3M's Safety and Graphics sales of $1.5 billion declined 0.9 percent year-over-year. Personal safety sales increased, commercial solutions sales were flat, while transportation safety and roofing granuels sales declined.
Industrial segment sales of $2.7 billion were up 2.5 percent in U.S. dollars, led by advanced materials, automotive and aerospace solutions, and industrial adhesives and tapes; separation and purification sciences declined.
Illinois Tool Works
Glenview, IL-based supplier Illinois Tool Works reported its Q2 fiscals on Monday, led by solid increases in total sales and profit.
The company posted Q2 sales of $3.6 billion, up 4.9 percent year-over-year, while organic sales improved 2.6 percent. Total profit of $587 million jumped 11.8 percent, while operating profit of $874 million increased approximately 10 percent and was a company quarterly record. Operating margin of 24.3 percent increased 120 base points and also was a company record.
The company said its 2016 acquisition of Engineered Fasteners & Components added 3.5 percent to total sales.
Organic sales grew in six of ITM's seven business segments: Automotive OEM grew 4 percent, Test & Measurement/Electronics grew 4 percent, Specialty Products grew 4 percent, Welding grew 3 percent, Construction Products grew 2 percent and Food Equipment grew 1 percent. Polymers & Fluids declined 1 percent.