GLENVIEW, Ill. (AP) — Anixter International Inc. on Tuesday posted a higher profit for the third quarter as the distributor of communications and electronics products saw sales increase 10 percent.
"The sales growth that we are experiencing is being fueled by stronger day-to-day business in both of our cabling businesses along with an increasing number of major projects," said CEO Robert Eck. The company distributes communication and security products, electrical and electronic wire & cable, fasteners and other small parts.
"Considering the uncertainty that has continued to exist in most major economies, we believe that customer capital spending decisions are impacting company results more than broader macroeconomic factors," Eck said.
The company reported net income of $36.5 million, or $1.03 a share, in the quarter ended Oct. 1. That compares with earnings of $22.1 million, or 61 cents a share, in the same period last year. Excluding a loss on early debt repayment, earnings totaled $1.08 a share in the latest period.
Revenue rose to about $1.4 billion from $1.27 billion. Lower prices for the copper used in wiring partly offset losses due to fluctuating exchange rates and the end of a major customer contract in 2009.
The results topped the average estimates of analysts surveyed by Thomson Reuters, who expected a profit of $1.03 a share on revenue of $1.38 billion.
Anixter said the strong daily sales rates it experienced throughout the third quarter continued into the first few weeks of the fourth quarter. However, it noted that seasonal factors traditionally lead to a slight decline in consecutive quarter sales during the holiday period.
Shares fell $1.67, or 3 percent, to $54.78 in afternoon trading.