Hagemeyer Sales Down in North America

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October 23, 2007

Hagemeyer Sales Down in North America

Netherlands-based Hagemeyer NV reported Group revenue was up 3.2% on an organic basis in the third quarter 2007, with sales of 1.6 billion euro (US$2.3 billion*).

Organic growth for the PPS business was 2.8% in the third quarter, with improvement in the North American rate. Organic growth for Hagemeyer's electronics division was 3.7%.

Hagemeyer reiterated today that Sonepar's offer to buy the distributor for roughly US$3.5 billion undervalues the company.

In the U.S., sales were down 3.9% in the first nine months of 2007, and down 0.6% in the third quarter 2007. Overall in North America, sales were down 2.9% in the first nine months, and up 0.8% in the third quarter.

Hagemeyer reports strong sales growth in the Construction and Installation business despite the weaker residential market. The company sees strong demand for non-residential construction project business.

Industrial MRO sales in North America were flat. Hagemeyer reports that its decreasing government sales and lower sales to large national MRO customers offset new customer wins in the mid-market. Third-quarter sales also decreased in its integrated supply business as a result of reduced manufacturing levels with some of its large integrated supply customers. Integrated supply business is expected to continue its decline in the fourth quarter due to a winding down of several contracts.

Business in Canada continues to strengthen, with the mining sector contributing significantly to growth.

Mexico had double-digit organic sales growth thanks to new customer wins and strong sales to offshore-drilling customers.

Europe sales in PPS were up 7.3% for the first nine months, and 3.7% for the third quarter.

Asia-Pacific sales were up 4.8% for the first nine months, and 1% for the quarter.

*Based on exchange rate of 1 euro=US$1.42

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