Anixter International Inc. reported sales of $3.85 billion for the year ended Dec. 30, 2005, an increase of 17%. The electrical distributor had a profit jump of 20% to $90 million from the year before.
Sales for 2005 include $126.4 million from Infast, which was acquired on July 8, 2005, and incremental revenues of $36.7 million from the June 22, 2004 acquisition of the assets and operations of Distribution Dynamics, Inc.
For the fourth quarter ended Dec. 30, 2005, Anixter’s sales were up 21% to $1.03 billion and profit dropped to $20.1 million, a 22% decrease.
‘All-time high copper prices had a positive effect on our sales and earnings in the specialty wire and cable market. These two factors, along with continued organic growth throughout many areas of the business, drove record operating income results for the company during the quarter,’ President and CEO Robert Grubbs said.
During the quarter, market-based copper prices averaged approximately $2.03 per pound, compared with the year ago fourth quarter of $1.38 per pound, accounting for approximately $15 million of the year-on-year increase in sales.
In North America, sales grew by 17% in the fourth quarter. In addition to the impact of high copper prices, North American sales were up $3.6 million due to the stronger Canadian dollar and $4.9 million due to the acquisition of Infast. These three items represented 4 percent of the 17% sales growth. Outside of North America, sales climbed by 37% in Europe as compared to the year ago quarter, according to Grubbs.