Electrical distributor Anixter International Inc. (NYSE: AXE), Glenview, IL, reported sales for the second quarter of $1.5 billion, a 10.2 percent increase year-over-year. Profit decreased 33.7 percent to $29.5 million.
The earnings release came soon after the company announced its agreement to acquire the Power Solutions business unit of HD Supply Holdings Inc. (NASDAQ: HDS), Atlanta, GA, for $825 million.
"In addition to solid execution in the business, the current quarter was marked by significant progress on our strategic goals," said Bob Eck, president and CEO. "Power Solutions represents the largest acquisition in Anixter's history and will transform our business into a leading North American electrical distribution platform, enhance our competitive position in the electrical wire and cable business and further strengthen our overall customer and supplier value proposition."
Enterprise cabling and security solutions sales in the second quarter increased 20.1 percent to $1 billion, driven by an increase in security sales, both from Tri-Ed and existing business. Electrical and electronic wire and cable sales decreased 5.9 percent to $478.8 million.
Year-to-date sales were $2.9 billion, up 9.5 percent over the prior-year period. Profit decreased 31.9 percent to $56 million.
