Diluted Earnings per Share from Continuing Operations of $1.27, On First Quarter Sales of $1.49 Billion

First Quarter Highlights

  • Earnings from continuing operations of $1.27 per diluted share
  • Record first quarter Electrical and Electronic Wire and Cable segment sales of $517.8 million
  • Generated $53.1 million in cash from operations

GLENVIEW, Ill.--(BUSINESS WIRE)--Apr. 23, 2013-- Anixter International Inc. (NYSE: AXE) today reported sales of $1.49 billion for the quarter ended March 29, 2013, a 2.1 percent decrease compared to the year ago quarter. Sales growth year-over-year would have been slightly positive excluding the unfavorable impact of the timing of holidays and the conclusion of a large security solutions contract. Organic sales, which excludes the impact of the following items, declined by 3.8 percent year-over-year:

  • $34.1 million from the second quarter 2012 acquisition of Jorvex
  • $5.5 million from the unfavorable effect of copper pricing
  • $3.2 million from the unfavorable effect of foreign exchange

Operating income of $81.0 million decreased by 6.5 percent from $86.7 million in the prior year period. Operating margin of 5.4 percent compares to 5.7 percent in the prior year period and 5.5 percent in the previous quarter, excluding the fourth quarter of 2012 impairment, pension-related and restructuring charges of $46.7 million.

Net income from continuing operations of $42.6 million compares to non-GAAP net income from continuing operations of $47.0 million in the prior year quarter, which excludes a $9.7 million tax benefit from the reversal of deferred income tax valuation allowances and $1.7 million ($1.1 million, net of tax) in interest expense and penalties related to prior years’ tax liabilities. Earnings from continuing operations of $1.27 per diluted share in the current quarter compares to an adjusted $1.37 per diluted share in the year ago quarter, which excludes the above referenced net benefit of $0.25 per diluted share. The year-over-year decline in earnings per diluted share was primarily a result of industry-wide delays in enterprise data infrastructure investment that began in the fourth quarter of 2011, and the continuation of weaker OEM Supply trends from the third and fourth quarters of 2012.

“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. 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,” commented Bob Eck, President and CEO. “We remain focused on margin improvement and working capital management, which will enable us to deliver solid financial results in a business environment that we expect will continue to be characterized by slow growth.”