Anixter International Shares Fall On Downgrade

HARTFORD, Conn. (AP) — Shares of Anixter International Inc. fell Wednesday as an analyst downgraded the distributor of fasteners and electrical and electronic wire and cable, saying Wall Street estimates are too optimistic and fail to account for weak demand.

Robert W. Baird analyst David J. Manthey cut his rating to "Neutral" from "Outperform" and reduced his price target to $37 from $45.

Survey data and discussions with those in the industry indicate weaker conditions in the first quarter, he said, "with no rebound in sight as Anixter's business may prove more later cycle than originally thought."

Manthey said he expects first-quarter revenue for the Glenview, Ill., company to fall at a faster pace than the last quarter of 2008, "but rates of decline should stabilize soon."

He cited pricing pressure, which "appears rather benign in general," and destocking. And guidance for the second quarter will likely be "cautious and weak — if provided at all — given the current economic backdrop."

Fourth-quarter revenue totaled $1.46 billion, down slightly from $1.49 billion in the same quarter of 2007, but off 8 percent from the $1.59 billion booked in the third quarter.