Anixter International Inc. (NYSE: AXE), Glenview, IL, a global distributor of communication products, electrical and electronic wire & cable, fasteners and other small parts, reported sales for the year ended Jan. 1, 2010, were $4.98 billion, down 18.8% from the prior year. The distributor reported a loss of $29.3 million, compared with a profit of $187.9 million the year before.

 

North American sales were $3.6 billion, down 15.7% from the year before. European sales were $907.2 million, down 30.7%.

 

In the fourth quarter, sales were $1.22 billion, down 17% from the prior-year period. Excluding the effects of foreign exchange and copper prices in the fourth quarter, sales were down by 18%. In the fourth quarter, profit was $12.7 million, up 72%. Excluding one-time items, profit would have been $18.3 million.

 

Robert Eck, president and CEO, said: “Our fourth-quarter sales patterns were largely a continuation of flat daily sales trends the company experienced over much of the first nine months of this year. … As we expected, year-on-year sales comparisons were negatively impacted by the economic slowdown and lower copper prices, which were partially offset by favorable foreign exchange effects.

 

“Once again our three primary end markets, within all geographic segments, reported year-on-year sales declines. Our best sales performance was within our North American OEM Supply end market, where continuing softness with aerospace customers was partially offset by slight growth with industrial customers, resulting in a 10% year-on-year organic decline in sales.

 

"Our worst sales performance in the quarter was within the electrical wire & cable end markets in North America and Europe, where even after adjusting for lower copper prices and foreign exchange effects we reported a 25 percent year-on-year organic decline in sales due to a decrease in the number of larger projects in the current quarter.”

 

Eck said he is "encouraged by reports of economic conditions stabilizing" in much of the world, though Anixter has not yet seen a positive impact on its business. "For us to benefit from this trend, overall economic growth will need to be sustained for at least two to three quarters such that our customers gain the confidence to invest in new projects or the growth in their respective business requires new capital projects or generates increased levels of production. Assuming positive trends in macro economic conditions continue, we would anticipate seeing some growth in sales by the middle of 2010," he said.