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At constant copper prices, sales would have decreased by 13.7%.
A 20.2% drop in organic sales in the second quarter followed a 15.4% drop in the first quarter. The distributor reported continued weakness in all of its end-markets. The company has also streamlined its branch network - closing 224 branches in the past 12 months.
The sales decline in the second quarter included 4 percentage points due to lower copper-based cables prices; at constant copper price, sales would have decreased 16.1% in the second quarter.
In North America, 31% of the company's sales, first-half sales ...
Profit fell to €0.9 million, compared with €62.5 million in the first quarter of 2008. Costs associated with restructuring resulted in a charge of €30.4 million.
Rexel's underlying profitability remains sound although it was more severely impacted by the economic downturn in the quarter than at the end of 2008, CEO Jean-Charles Pauze said. "In the face of a deteriorating environment, Rexel is reinforcing its cost-adjustment program, ...
The distributor reported that sales in the fourth quarter fell 6.7%; the drop in copper-based cables prices accounted for about one-third of the decline.
In the fourth quarter, Rexel recorded a net loss.
In 2008, Rexel completed its acquisition of Hagemeyer's European business.
Rexel said it expects a "marked drop" in 2009 sales, due to volume declines and the lower copper price.
The distributor says it has started a "cost-saving plan" of at least €110 ...
Rexel recorded year-to-date sales of €9.43 billion (US$11.8 billion).
CEO Jean-Charles Pauze said: Rexel recorded a solid third quarter and year-to-date performance in a challenging environment. Our profitability and cash flow attest to the resilience of Rexel's business model.
"As we had expected for the second half of the year, our major markets are slowing down. We have continued to implement measures to attain our targeted EBITA margin of around 5.4% in 2008 even if our sales are slightly lower than anticipated due to the deterioration of the economic environment and the ...
For the first six months ended June 30, 2008, sales were €6 billion (US$9.4 billion), an increase of 12.9% from the same period a year ago. Profit increased 72.1% to €259 million (US$403.9 million).
Rexel experienced organic growth in all three geographic zones for the first half of 2008. In Europe, sales increased 2.3%, led by strong performance in Scandinavia and Germany. North America posted a 0.5% ...
The deterioration in some of our key markets continues and it is likely that conditions will get tougher still,"CEO Chip Hornsby said. "In these unprecedented circumstances, driving cost reduction, enhancing cash flow and closely managing the balance sheet remain key priorities."
As a result of difficult market conditions, the distributor's board recommended no final dividend payment to stockholders for 2008, a move that will result in a cash ...
Rexel acquired Dutch distributor Hagemeyer NV in March in a $4.7 billion deal that included plans to sell Hagemeyer's North American, Asian-Pacific and selected European businesses to Sonepar within six months of the acquisition.
The completion of the deal allows the businesses to move forward with the creation of action plans to improve business performance and achieve desired synergies, Rexel CEO Jean-Charles Pauze said.
Sonepar told MDM earlier this year that it will likely keep Hagemeyer's North American ...
Sales in the first quarter were €2.5 billion, compared with €2.4 billion a year ago.
Sales were up 3.7% in Europe, led by Northern Europe and the United Kingdom. North America had growth of 1.2%. In Asia-Pacific, growth was 8.2%.
In the quarter, Rexel completed its acquisition of Dutch distributor Hagemeyer ...
Pauze was commenting in an online video interview, posted by the company through the EuroBusiness Media site. (Interview, Transcript)
Pauze said the combination of Rexel and Hagemeyer is "historic." "Not only are we reinforcing our position worldwide, but we are becoming a very strong No. 2 in ...
In November 2007, Rexel and Hagemeyer reached an agreement for Rexel to buy the Dutch electrical distributor for roughly US$4.5 billion. Rexel has agreed to sell Hagemeyer's North American, Asian-Pacific and select European businesses to Sonepar.
The overall transaction combines the strengths of three major players in the distribution of electrical supplies. The transaction will broaden Rexel's footprint across Europe, while significantly consolidating Sonepar's positions in North America and ...
Jean-Charles Pauze, chairman of Rexel's management board, said: The success of our offer for Hagemeyer underscores the strategic merits of the transaction, which marks a step change in the distribution of electrical supplies worldwide and reinforces Rexel's leading market positions in Europe. We are greatly looking forward to moving on to the next stage, working with Hagemeyer's teams and building on a stronger platform to accelerate profitable growth."
Sonepar has agreed to buy some of Hagemeyer's assets from Rexel, including those in the U.S. Sonepar CEO Marie-Christine Coisne said the ...
The European Commission has authorized Rexel's proposed acquisition of Hagemeyer's European assets, finalizing antitrust approvals sought by both Rexel and Sonepar in their acquisition of Hagemeyer.
The commission is requiring Rexel divest Hagemeyer's electrical wholesale business in Ireland, representing €40 million in sales.
In November 2007, Rexel and Hagemeyer reached an agreement for Rexel to buy the Dutch electrical distributor for roughly US$4.5 billion. Rexel will then sell Hagemeyer's North American, Asian-Pacific and selected European businesses to Sonepar.
The overall transaction will combine the strengths of three major players in the distribution of electrical supplies. The transaction will broaden Rexel's footprint across ...
The acquisition is the second in China in the past 12 months.
Suzhou Xidian's 2007 sales were €38 million (US$55.6 million). The electrical supplies distributor has 115 employees and seven branches, six of which are in the Shanghai area and one in Beijing. It mainly serves the commercial and industrial markets.
Under the terms of the transaction, Rexel will hold 73.5% of the firm, and will increase its stake to 100% in three years.
The acquisition of Suzhou Xidian follows that of Huazhang Electric Automation in March 2007. Rexel posted 2007 pro-forma sales of 120 million euros (US$175.7 million), and has 580 ...
In North America, sales were down 1.6% in 2007. In the U.S., sales were down 2.4%, in part due to the ongoing decline in residential construction and residential-related commercial projects. At Gexpro (formerly GE Supply), double-digit growth with key accounts, notably related to large project management, was seen.
In Canada, sales were up 1.5%, driven by mining and building markets in the West, as well as commercial activity in Quebec.
In the U.S., Rexel strengthened its platform by integrating Gexpro ahead of schedule, and demonstrated its ability to adapt its cost base to a difficult economic ...
Analysts and industry-watchers questioned whether the company would move ahead with its takeover bid or reduce the offer after Hagemeyer was ordered to pay & euro; 50 million in advance damages over the bankruptcy of a former ...
The Financial Times in London however said Rexel was pushing ahead with its & euro; 3.1 billion takeover offer. The Reuters article contradicted that report.
Still, Hagemeyer has said the details about the lawsuit were public, as well as the timing of the case. The Financial Times said that Hagemeyer in its 2006 annual report estimated damages in the case to be & euro; 160 ...
The case involves Ceteco, which went into bankruptcy in 1998 and started proceedings against Hagemeyer, former members of Hagemeyer's board of management, supervisory board and the accountant of Ceteco. The company claimed mismanagement led to the bankruptcy. Hagemeyer owned 65% of Ceteco.
Though some are speculating that the judgment may affect Rexel's deal with Hagemeyer in the form of a reduced offer or a rescinding of the offer overall, a Hagemeyer spokeswoman told Reuters that the case was not news to Rexel. They know about this. This court case ...
The offer was approved by the boards of Rexel, Sonepar and Hagemeyer.
Rexel has secured committed debt financing.
As previously announced, Rexel has agreed to sell Hagemeyer's North American, Asian-Pacific and selected European businesses to Sonepar after completion of the sale.
The overall transaction will combine the strengths of three major players in the distribution of electrical supplies. The transaction will broaden Rexel's footprint across Europe, while significantly consolidating Sonepar's positions in North America and Asia-Pacific.