Pittsburgh-based WESCO International — No. 5 on Industrial Distribution's Big 50 List — reported its 2017 second quarter fiscal performance on Thursday, led by a long-awaited return to overall organic growth for the company, powered by its Industrial segment.
WESCO posted total Q2 sales of $1.91 billion — identical to a year earlier, and up 7.7 percent from Q1. Organically, Q2 sales improved 1.0 percent year-over-year. It was the company's first overall organic growth after eight consecutive quarters of decline. Sequentially, organic sales improved 8.0 percent from Q1.
Q2 operating profit of #83.1 million was down from $88.0 million a year earlier, but up from $67.1 million in Q1. Total profit of $49.5 million was flat year-over-year and up from $37.7 million in Q1.
"Our sales momentum accelerated as the quarter progressed, and this trend has continued into July, with all geographies growing to start the third quarter," WESCO president and CEO John Engel said. "The first half has developed as we expected, and we are encouraged with the improving momentum of our business. Our technical capabilities and service offerings promote loyal customer relationships and growth. In the second half, as our expected growth accelerates, we plan to invest to strengthen our differentiated business model and improve our competitive advantage in 2018 and beyond."
By business segment in Q2:
- Industrial sales of $714 million (37 percent of total) increased 5.1 percent year-over-year and 4.9 percent from Q1. Organic sales improved 6.0 percent year-over-year. It was the second straight quarter of year-over-year organic growth for industrial after eight straight quarters of decline.
- Construction sales of $626 million (33 percent of total) decreased 5.9 percent year-over-year and improved 9.1 percent from Q1. Organic sales decreased 4.4 percent year-over-year.
- Utility sales of $284 million (15 percent of total) decreased 4.9 percent year-over-year and improved 6.0 percent from Q1. Organic sales decreased 4.4 percent year-over-year.
- Commercial-Institutional-Government (CIG) sales of $293 million (15 percent of total) increased 6.6 percent year-over-year and 13.9 percent from Q1. Organic sales improved 7.4 percent year-over-year.
Engel said the company has narrowed its full year sales outlook, expecting sales growth of 1 to 3 percent.