Fresh off last week's major announcement that it is buying HD Supply's Power Solutions unit for $825 million, Anixter reported quarterly sales of $1.48 billion in Q2, a 10.2 percent increase over last year. Adjusted organic sales increased 3.4 percent.
Meanwhile, profit had a substantial quarterly decrease as net income of $29.5 million was 33.7 percent lower than last year. Adjusted net income was $38.4 million, down 10.7 percent. Operating income of $64.5 million was also down 16.5 percent, while adjusted operating profit was up 1.8 percent.
Operating expenses of $264.4 million were 16.9 percent higher than last year's, which included $14.1 million restructuring costs.
By segment, Anixter's Enterprise Cabling & Security Solutions business had record sales of $1.001 billion in Q2, a 20.1 percent increase over last year. The big gain was driven by the 2014 acquisition of Tri-Ed, and an increase in security sales. ECS organic sales increased by 5.2 percent. ESC security sales of $393.2 million were also a company record, up from $226.3 million a year ago. Adjusted organic sales grew 8 percent. Electrical and Electronic Wire & Cable sales of $478.8 million was a 5.9 percent decrease from last year. Adjusted organic sales increased 0.1 percent.
"Our Enterprise Cabling & Security Solutions segment achieved quarterly sales of $1 billion for the first time in our history, reflecting strength in both our security solutions and network infrastructure businesses," commented Bob Eck, President and CEO. "Sequentially, sales improved in our Electrical and Electronic Wire & Cable segment, while on a year-over-year basis, the business was negatively affected by copper and slower industrial growth, especially related to the oil and gas sector in Canada. From a geographic perspective, we delivered strong organic growth in the U.S. while overall North America growth was adversely impacted by the weaker Canadian macro environment."
Anixter also said it has narrowed and raised its full year organic sales outlook to the 2-4 percent range.
"The strategic steps we have taken over the past 12 months, including the acquisition of Tri-Ed, the sale of Fasteners and the announced acquisition of Power Solutions, position Anixter as a leading global competitor in each of our businesses, provide a platform for substantial and sustainable long term growth, and will enable us to maximize shareholder value in both the near term and the long term," Eck said.