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Electrical distributor Rexel, Paris, France, reported third-quarter sales of €3.3 billion (US$4.2 billion), up 2.2 percent over the same period a year ago. On a constant, same-day basis, sales also increased 2.2 percent. Profit fell 14.4 percent to €67.1 million (US$85.6 million).
“Rexel’s third quarter sales showed positive momentum, particularly in North America, while the operating margin was impacted by unfavorable mix effects on gross margin, transition costs related to the implementation of our business transformation program and increased investments to accelerate profitable growth in strategic areas," CEO Rudy Provoost said.
For the first nine months, sales were €9.6 billion (US$12.3 billion), down 1.1 percent from the prior-year period. On a constant, same-day basis, sales were up 1.1 percent. Profit grew 5.2 percent to €157.5 million (US$201 million).
Sales in Europe (55 percent of group sales) were up 1.3 percent in the third quarter and up 1 percent for the nine months (on a constant, same-day basis). Third-quarter sales declined slightly in France (-0.2 percent) and Germany (-0.3 percent), while the Netherlands declined 7.3 percent. Sales grew in the UK (1.7 percent), Scandinavia (6.8 percent), Belgium (0.4 percent), Switzerland (1.5 percent), Austria (1.9 percent) and the Southern European countries (3.7 percent).
In the third quarter, sales in North America (34 percent of group sales) were up 3.7 percent on a reported basis but up 5.5 percent on a constant and same-day basis. In the nine months, sales were up 2.1 percent on a constant and same-day basis. In the U.S., sales increased 5.7 percent in the quarter, while in Canada sales were up 4.7 percent.
Third-quarter sales in Asia-Pacific (9 percent of group sales) were up 2.4 percent on a reported basis, but down 2.6 percent on a constant, same-day basis. In the nine months, sales were down 0.9 percent on a constant and same-day basis. Third-quarter sales were down 5 percent in Australia, down 3.7 percent in China and down 3.5 percent in New Zealand; sales increased 6.1 percent in South-East Asia.
In the third quarter, sales in Latin America (2 percent of group sales) were down 9.8 percent on a reported basis and down 7 percent on a constant, same-day basis. . In the nine months, sales were down 3.7 percent on a constant and same-day basis. Third-quarter sales declined in Brazil (-7.4 percent) and Chile (10.6 percent), but grew 8.4 percent in Peru.
Rexel also acquired the Thai company "4 Knights International." The acquisition reinforces the group’s position in the key oil & gas segment, in line with the Group’s high-growth initiatives, and strengthens Rexel's presence in South-East Asia.
Headquartered in Bangkok, “4 Knights International” generated annual sales of €10 million (US$12.8 million) in 2013. This is Rexel’s second acquisition in Thailand.