Hagemeyer NV reported organic revenue growth of 5.7% in the first half of 2007 compared with the first half 2006.
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Revenue was 3,117 million euro (US$4,207 million). Profit nearly doubled from the same period a year ago.
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Hagemeyer saw growth in all regions except North America, where organic sales in PPS were down 4.6% in the first half 2007. Sales in Professional Products and Services (Hagemeyer’s key business) in North America were US$849 million.
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In the U.S., sales in PPS fell by 5.5%. Two government contracts were not renewed in the first half, accounting for more than 2 percentage points of the drop. U.S. construction and installation business was flat. A decrease in residential business was offset by commercial sales.
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U.S. sales to industrial market and in technical services were offset by the winding down of&nbsp ; unprofitable large MRO customers and reduced levels of activity with a few large integrated supply customers, particularly in the automotive industry,” Hagemeyer reported.
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Hagemeyer also reported it has reorganized its U.S. operation into three business units: MRO, Integrated Supply, and Construction and Installation.
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In Canada, sales fell in the first half, with a hint of recovery in the second quarter when it registered positive growth. Two branches were closed in Canada in low-growth markets; revenues from oil and gas were lower due to the timing of large projects.
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Mexico was the only North American country registering revenue growth in the first half. Industrial contracts increased; that growth was partially offset by a decline in telecommunications sales.
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