Wesco saw higher sales and stronger profits in the second quarter of the year, but its earnings and profit margin were both down compared to the same period last year.
The Pittsburgh-based distribution and supply chain giant posted $5.9 billion in net sales in the latest quarter, which was up 7.7% compared to the previous second quarter. Organic sales, which did not factor in the company’s acquisition of Ascent LLC, were up 7.2%, Wesco officials said.
The company’s $1.2 billion in quarterly gross profit was up 3.7% year-over-year, but its gross margin was down 80 basis points to 21.1%. Net income attributable to its common stockholders, meanwhile, declined 13.1% from $217.7 million to $189.2 million; earnings came in down 10.5% at $3.83 per diluted share.
Wesco officials attributed the increase in organic sales to both volume and price growth in its electrical and industrial segments, which was partially offset by a decline in sales in its utility division — although Wesco’s chief executive said that the latter segment is seeing “signs of improvement” due to stronger sales to investor-owned utilities.
John Engel, Wesco’s chairman, president and CEO, said that the overall results “outperformed the market” and that sales growth accelerated during the first half of the year. He said that the company has raised its outlook for organic sales amid “positive sales momentum from the first seven months of the year” — although it did not disclose a forecast range in the company’s earnings release.
“Our Wesco opportunity pipeline continues to grow, bid activity levels remain very strong, and backlog is at record levels, increasing both year-over-year and sequentially across all three business segments,” Engel said in the statement.
