Wesco on Thursday reported a 2.7% decline in its third-quarter sales amid a slight drop in organic revenue and the impact of selling its Wesco Integrated Supply business.
The Pittsburgh-based company posted just shy of $5.5 billion in July-September net sales compared to more than $5.6 billion in the same quarter of 2023. Without the impact of the spring sale of the WIS segment to Vallen, along with additional factors, organic sales were off by 0.6% year-over-year.
Among the company’s business units, Wesco’s communications and security segment saw a 10% jump in organic sales in the latest quarter, which was more than offset by a 1.8% slide in its electrical segment and a 17.5% decline in the utility and broadband business.
The company’s operating profit fell by 11.8% year-over-year to $335.6 million, and net income attributable to Wesco shareholders declined by about 13.3% to $189.9 million. Earnings per diluted share dropped from $4.20 in the previous third quarter down to $3.81.
Wesco President, Chairman and CEO John Engel highlighted a strong end to the quarter and noted that the company’s adjusted EBITDA margin was flat compared to the second quarter amid an improvement in gross margin. The company maintained its mid-year forecast for 2024 organic sales between an increase of 0.5% and a decline of 1.5%.
“While end markets remain mixed, in the fourth quarter, we expect to continue to benefit from double-digit growth in the data center space, as well as some large projects in our electrical and industrial end markets,” Engel said in a statement. “As we look ahead, I like Wesco's leadership position and exposure to the long-term trends we have consistently described in detail.”
Wesco’s industrial operations came in at no. 11 on ID’s 2024 Big 50.
