Rexel, Paris, France, reported sales for the first quarter were €3 billion (US$4.3 billion), an increase of 11.4 percent in a year-over-year comparison. Organically, sales increased 7.3 percent. Profit increased 195.1 percent to €86.5 million (US$123.2 million).
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The global electrical distributor announced two acquisitions during the quarter. The company acquired Tegro, a family-owned company based in Freudenberg, Germany, with one branch and €10 million in sales in 2010.
Rexel also entered a joint venture agreement with Beijing Zhongheng, a Chinese privately-owned company based in Beijing. Rexel will own a controlling stake of 65 percent in the joint venture, strengthening its presence in Northern China. Sales in 2010 for Beijing Zhongheng were €34 million.
In Europe (60 percent of group sales), sales were €1.8 billion (US$2.6 billion), up 10.3 percent over the same period a year ago. Organically, sales improved 6 percent.
Sales in North America (28 percent of group sales) increased 13.4 percent to €845.9 million (US$1.2 billion). Organic sales were up 10.4 percent. The U.S. environment remains challenging but showed signs of improvement, primarily in the industrial end market. Industrial also drove growth in Canada, aided by improvements in both residential and commercial construction.
In Asia-Pacific (9 percent of group sales), sales were €284.1 million (US$404.6 million), up 20.5 percent over first quarter of 2010. Organically, sales improved 8.1 percent.
Sales for other operating segments including corporate holdings increased 3.3 percent to €87.5 million (US$124.6 million), primarily a result of the 33.8 percent increase in sales in Latin America. Organically, sales for other operating segments increased 2.4 percent.
