The 2020 Mid-Year Economic Update_long

Anixter Acquisition Boosts WESCO’s 1Q Sales

Ever since completing the $4.5 billion acquisition of Anixter International Inc. almost a year ago, WESCO has benefited from favorable comps, which was again the case in 1Q.
WESCO

Anixter is the gift that keeps on giving for WESCO International Inc. (NYSE: WCC), Pittsburgh, Pennsylvania. The electrical distribution giant rode its 2020 acquisition of Anixter to first-quarter sales of $4 billion, doubling its revenue from the same period a year ago. On a pro-forma basis, WESCO sales grew 3.2% in the period.

The company reported a profit of $74.1 million, which also roughly doubled its profit of $38.3 million in the year-ago period.

“We’re off to a great start to the year and delivered excellent results across the board that exceeded our expectations,” said John Engel, Chairman, President and CEO. “I am very proud of our team and the work that they are doing in executing our integration plan, delivering the synergies, and capturing the value of the transformational combination of WESCO and Anixter. We’re outperforming our markets, delivering significant margin expansion, and generating very strong free cash flow. With over $500 million of debt reduction over the last three quarters, our financial leverage is now below 5.0X, showing the power of our business model. The first quarter is another strong proof point of the substantial value creation potential of WESCO plus Anixter.”

Related Posts

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.