Electrical distributor and integrator Hagemeyer NV reported sales of €6.4 billion in 2007 (US$9.4 billion at current exchange rates). Organic revenue growth was 4.3% for the year, decreasing from 5.7% in the first half to 3.1% in the second half.
About 75% of the organic revenue growth for the year can be attributed to price increases.
In 2007, revenue for the Professional Products and Services business was €6 billion, compared to €5.8 billion in 2006. Organic growth was 4% in 2007. Copper price fluctuations did not have a noticeable impact on Hagemeyer's revenue, unlike in 2006 when they accounted for a revenue increase of 7%. Organic growth is almost exclusively attributable to price increases, of which the largest part was non-copper-cable-related.
PPS Europe In 2007, revenue in Europe was €4.23 billion (US$6.2 billion), an increase of €283 million as compared to 2006. For the full year, organic revenue growth was 5.9%. The first half growth rate was 9.3%, slowing down to 2.9% in the second half. Reduction in the growth pace in the latter part of the year is due to lower residential construction activity and to a high comparison base in 2006.
PPS North America Revenue in 2007 was €1.28 billion (US$1.87 billion at current exchange rates). For the full year, organic revenue growth was down 1.6%. In the first half, organic sales fell 4.6%, improving to growth of 1.7% in the second half.
Organic revenues in the U.S. were down 2.7% in 2007. The expiration and non-renewal of two government contracts early in the year accounted for 1.5 percentage points of the decrease, with the remainder due to the winding down of some unprofitable large MRO customers and reduced levels of activity with a few large Integrated Supply customers, particularly in the automotive industry.
Canada achieved small organic revenue growth for 2007. However, revenue growth improved during the second half of the year. Gains in the resource-based industries in Western Canada were partly offset by closures of two unprofitable branches in Eastern Canada and the significant decline in the conventional oil and gas drilling market in Alberta.
PPS Asia-Pacific Organic growth in Asia-Pacific was 3.3% in 2007.
Consumer Electronics Revenues in the ACE division in 2007 were €434 million (US$637 million), an increase of € 30 million compared to 2006. Organic growth was 9.1%. The price erosion in some consumer electronics categories in our businesses was more than offset by significant volume growth, in particular in Hagemeyer's Panasonic business in the Netherlands.