The 2020 Mid-Year Economic Update_long

Anixter Sales Down 2.1% in First Quarter

CEO: Expect strengthening results in the second half of the year.

Anixter International Inc. (NYSE: AXE), Glenview, IL, reported first-quarter sales of $1.49 billion, a 2.1 percent decrease compared to the year ago quarter. Organic sales declined 3.8 percent year-over-year.

Profit was $42.5 million, down 23.1 percent from a year ago.

"We entered 2013 with the expectation that the first half of the year would continue to be challenged by global macroeconomic activity and that we would see strengthening results in the second half of the year," said Bob Eck, president and CEO. "Based on the increased levels of project quoting activity, we are seeing signs that general business conditions and overall levels of capital spending by our customers are beginning to improve."

Enterprise Cabling and Security Solutionssales of $745.1 million compares to $778.8 million in the prior year period. The 4.3 percent decline was primarily caused by persistent macro-economic weakness in the European and Emerging Markets regions, partially offset by growth in sales in North America. Security sales increased slightly year-over-year.

ECS operating income of $34.8 million compares to $38.2 million in the year ago quarter. The year-on-year decline was caused primarily by declines in Emerging Markets.

Electrical and Electronic Wire and Cablereported sales of $517.8 million, up 6.8 percent from the prior year period, reflecting the acquisition of Jorvex and continued strength in natural resource extraction and power generation businesses customer sectors.

Operating income of $41.3 million compares to $39.8 million in the year ago quarter, with gains in the Emerging Markets and EMEA regions offsetting a decline in North America.

OEM Supplysales of $228 million declined by 12 percent from the prior year quarter caused by a year-over-year decline in heavy truck production levels in North America and continuing weaker manufacturing production levels in Europe.

Operating income of $4.9 million compares to $8.7 million in the year ago quarter.

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