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Anixter Organic Growth at 2% in 3Q

Anixter International Inc., Glenview, IL, distributor of communication products, electrical and electronic wire &cable, fasteners and other small parts, reported sales in the third quarter ended Sept. 26, 2008, were up 4% to $1.59 billion. Profit fell 5% to $61.7 million.
 
Organic growth in the third quarter was 2%.

While we experienced strength early in the third quarter, broader negative economic factors, especially in Europe, impacted sales activities late in the period," said Robert Eck, president and CEO. "Despite these headwinds we still generated 2% organic growth, primarily driven by our initiatives to expand the company's presence in the security solutions market and increase the geographic footprint of our electrical wire and cable business in ...

Anixter International Inc., Glenview, IL, distributor of communication products, electrical and electronic wire &cable, fasteners and other small parts, reported sales in the third quarter ended Sept. 26, 2008, were up 4% to $1.59 billion. Profit fell 5% to $61.7 million.
 
Organic growth in the third quarter was 2%.

While we experienced strength early in the third quarter, broader negative economic factors, especially in Europe, impacted sales activities late in the period,” said Robert Eck, president and CEO. “Despite these headwinds we still generated 2% organic growth, primarily driven by our initiatives to expand the company’s presence in the security solutions market and increase the geographic footprint of our electrical wire and cable business in Europe.”

Sales in North America grew 5% in the third quarter from the prior-year period, including acquisitions. Organic growth in North America was 3%.

 
North American enterprise cabling and security solutions sales grew 2%, from $575.7 million in the third quarter of 2007 to $585.5 million. The number and average size of larger projects was down year-on-year, Eck said. Within the enterprise cabling and security solutions sales, security-related sales grew at a year-on-year rate of 28%.
 
The company’s North American electrical wire and cable business sales grew 6% from $372.4 million in the year ago quarter to $394.1 million.
 
The North American OEM supply business saw sales grow by 18%, from $119.2 million in the year ago quarter to $140 million, including $11.6 million relating to a recently completed acquisition. Strong growth in sales to aerospace and defense customers offset the slight sales decline to industrial customers related to reduced production levels.
 
European sales in the quarter rose 2% versus the year-ago quarter. These results were aided by a favorable foreign exchange rate impact due primarily to the appreciation of the euro and acquisitions. European sales declined 2 percent organically. Sales in Europe were highest in the electrical wire and an cable end market, growing 18% to $65.6 million. The European OEM supply business saw modest growth, increasing 2% to $149.8 million.
 
Emerging market sales grew 10%, including $3.9 million from favorable effects related to foreign exchange rates and $1.4 million due to an acquisition. Sales in the current quarter were $143.1 million. In Asia Pacific, sales declined by 8% due to lower project activity while in Latin America continued good project activity drove sales growth of 19%, Eck said.

 
In the nine months ended Sept. 26, 2008, sales were $4.68 billion with profit of $186.3 million. Sales in the nine-month period included $38.5 million in acquisitions. Organic growth in the first nine months was 4%.

 

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