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Anixter Sales Flat in 2013

Electrical and datacomm distributor Anixter International Inc. (NYSE: AXE) reported sales for 2013 were $6.2 billion, roughly flat from the prior year. Profit was $200.4 million, up from $124.6 million in the prior year.

The distributor reported fourth-quarter sales of $1.6 billion for the quarter ended Jan. 3, 2014, a 3.5 percent increase compared to the year-ago quarter. Organic sales, which excludes the impact of the following two items, increased by 4.7 percent year-over-year:

  • $9.9 million from the unfavorable effect of copper pricing
  • $8.7 million from the unfavorable effect of foreign exchange

Net income from continuing operations of $58.2 million was up from $5.2 million in the year-ago quarter.

“While we experienced gradually improving market trends in all of our segments and geographies, we were especially pleased to achieve significant sales and profit growth in our OEM Supply segment, reflecting the results of actions we have taken to reposition the business for profitable growth,” said Bob Eck, president and CEO. “The performance in this segment fueled double-digit sales increases and strong growth in profits in our European geography.

“Overall, we are encouraged by the improving performance within each of our segments across our global markets, reflecting the value of our global capabilities to an increasing number of global customers.”

Enterprise Cabling and Security Solutions sales of $811.3 million compare to $800 million in the prior-year period. The 1.4 percent increase was driven by improvements in Emerging Markets geographies, reflecting the timing of projects and the strengthening of Latin American markets. Anixter reported an ongoing slow recovery in U.S. markets as many customers continue to be cautious regarding capital investments. Organically, ECS sales increased 1.9 percent.

On a sequential basis, ECS sales increased 0.9 percent from the third quarter of 2013, driven by improvements in Emerging Markets geographies. Security Solutions sales were flat versus the prior-year quarter excluding the impact of the previously disclosed contract that concluded in the fourth quarter of 2012.

Electrical and Electronic Wire and Cable had fourth-quarter sales of $539.6 million, an 0.8 percent decrease from the prior-year period, primarily caused by a drop of 9 percent in the average price of copper. Emerging markets sales increased by 11 percent reflecting project strength in the Asia Pacific geography. Excluding the $9.9 million unfavorable impact from a $0.32 decline in the average price of copper, and the $6.7 million unfavorable impact from foreign exchange, organic sales increased by 2.2 percent. Sequentially, global sales increased by 2.1 percent versus the third quarter of 2013 as industrial project business strengthened as the quarter progressed.

For the full year, Industrial Communications and Control sales of $243 million increased by 20 percent versus 2012.

OEM Supply sales increased by 23.6 percent from the prior-year quarter to $247.6 million, reflecting the continued ramp-up of a contract in Europe and improvement in North America heavy truck production levels. Excluding the $2.2 million favorable impact from foreign exchange, organic sales increased by 22.5 percent. On a sequential basis, sales increased by 10.2 percent driven primarily by strength in Europe.

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