Anixter 2Q Profit Climbs but Misses Expectations
25 Jul 2013
Anixter International Inc. reported that its second-quarter net income rose 5 percent as sales increased for the electrical and electronic wire and cable business. But earnings missed analysts' expectations, and the shares declined in afternoon trading.
The company, which distributes communication and security products, electrical and electronic wire and cable, fasteners and other small parts, earned $46.1 million, or $1.40 per share, for the period ended June 28. That's up from $43.9 million, or $1.28 per share, a year earlier.
Earnings from continuing operations were $1.39 per share. Analysts forecast higher earnings of $1.52 per share, according to a FactSet poll. Anixter's stock fell $2.14, or 2.6 percent, to $79.35. The shares have traded in a range of $47.98 to $82.25 over the past year. Revenue was nearly flat at $1.58 billion. Wall Street predicted $1.59 billion in revenue.
Electrical and electronic wire and cable division sales climbed 3 percent to $530.6 million as a benefit from the Jorvex acquisition offset weaker copper prices and unfavorable foreign exchange rates. Sales of the enterprise cabling and security solutions unit fell slightly to $813.8 million as it faced soft economic conditions in Europe and emerging markets and dealt with slow growth in North America.
Sales directly to manufacturers fell 2 percent on lower North American heavy truck production levels.
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