The 2020 Mid-Year Economic Update_long

Rexel Sales Up 1.1% in 2014

Electrical distributor also says bolt-on acquisitions will fuel growth, streamlines European operations.

Paris-based electrical distributor Rexel had sales of €13.1 billion (US$14.9 billion) in 2014, up 0.5 percent on a reported basis and up 1.1 percent on a same-day basis. Profit for the year was down 5.2 percent to €200 million (US$228.2 million).

Excluding the 0.6 percent negative impact due to the change in copper-based cable prices, sales were up 1.7 percent on a constant and same-day basis.

In the fourth quarter, Rexel’s sales were €3.5 billion (US$4 billion), up 5.5 percent on a reported basis and up 1.1 percent year-over-year on a constant and same-day basis. Excluding the 0.4 percent negative impact due to the change in copper-based cable prices, sales were up 1.6 percent on a constant and same-day basis.

In the fourth quarter, sales in Europe were up 1.1 percent on a reported basis and down 0.8 percent on a constant and same-day basis.

Sales in North America in the fourth quarter were up 12.8 percent on a reported basis and up 5.1 percent on a constant and same-day basis.

In the U.S., sales grew by 5.6 percent in the quarter, confirming the recovery in nonresidential construction, according to Rexel, and increase in photovoltaic sales.

In Canada, sales were up 3.5 percent in the quarter, reflecting gradual recovery in project activity, the company reported.

In the fourth quarter, sales in Asia-Pacific were up 9.5 percent on a reported basis. On a constant and same-day basis, sales were down 1.1 percent.

Sales were down 5.8 percent on a reported basis in Latin America, and down by 2.8 percent on a constant and same-day basis.

"With respect to the 2015 outlook, the current economic environment leads us to be cautious," said Rexel CEO Rudy Provoost. "In this context, we will relentlessly focus efforts and resources on our key drivers of profitable organic growth and operational efficiency, while completing our business transformation program and reinforcing our market positions. In that respect, targeted bolt-on acquisitions should continue to fuel our growth."

In other Rexel news, the company will place all its European operations under a single regional head. Rexel appointed Patrick Berard as senior vice president, Rexel Europe, effective July 1. Berard will be responsible for the entire region, replacing the previous structure under which Rexel’s European operations were divided into two zones: Southern, Central and Eastern Europe; and Northern Europe.

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