This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Anixter International Inc. (NYSE: AXE) today reported record sales of $1.54 billion for the quarter ended December 28, 2012, a 3.0 percent increase compared to the year ago quarter. Organic sales growth, which excludes the impact of the following items, was flat year-over-year:
$31.0 million of sales from the second quarter acquisition of Jorvex
$8.6 million from the favorable effect of foreign exchange
$4.3 million from the favorable effect of copper pricing
Operating income of $38.6 million included pre-tax charges of $46.7 million attributable to:
Impairment of goodwill and long-lived assets of $15.3 million and $6.0 million, respectively, related to the change in reporting segments
Pension-related charge of $15.3 million
Restructuring charge of $10.1 million
After adjusting for the charges, operating income was $85.3 million compared to $91.6 million in the prior year period. Adjusted operating margin was 5.5 percent compared to 6.1 percent in the prior year period, driven primarily by a decrease in gross margin.
Adjusted net income from continuing operations was $43.5 million excluding the impairment, pension-related and restructuring charges of $38.3 million, net of tax. Adjusted net income was $47.8 million in the prior year quarter excluding a net tax benefit of $2.0 million.
Adjusted earnings from continuing operations was $1.32 per diluted share compared to an adjusted $1.43 per diluted share in the year ago quarter. The current quarter excluded the previously mentioned charges totaling $1.16 per diluted share while the prior year quarter excluded the previously mentioned tax benefit equating to $0.06 per diluted share. The $0.11 year-over-year decline in adjusted earnings per diluted share was primarily a result of the challenging global economy.
“In light of uneven global growth, we were pleased to achieve record fourth quarter and full year sales. This strong performance was driven by record sales in several areas of the business including Security Solutions, which continued to grow at a double digit rate to exceed $1 billion of sales for the year. Our ongoing focus on cost and balance sheet management enabled us to deliver solid operating performance and cash flow,” commented President and CEO, Bob Eck. “We continue to have a strong financial position, with a business model that generates substantial cash in periods of slower revenue growth, as highlighted by the current quarter and fiscal year.”