Anixter International Inc. (NYSE: AXE) today reported sales of $1.52 billion for the quarter ended April 4, 2014, a 2.2 percent increase compared to the year-ago quarter. Despite the negative weather impact in the months of January and February and excluding the impact of the following two items, organic sales increased by 3.8 percent year-over-year:
- $12.1 million from the unfavorable effect of copper pricing
- $11.8 million from the unfavorable effect of foreign exchange
Operating income in the current quarter of $85.7 million compares to $81.0 million in the year-ago quarter. The 5.7 percent increase would have been 9.0 percent excluding the $2.7 million negative operating income impact of the drop in copper prices year-over-year. Operating margin of 5.6 percent increased by 20 basis points versus the prior year and decreased 40 basis points sequentially.
Net income of $47.4 million compares to $42.5 million in the year-ago quarter. The current quarter results included foreign exchange losses due to currency devaluations in Venezuela and Argentina of $8.0 million (after-tax $5.3 million) partially offset by the reversal of deferred tax valuation allowances of $4.9 million in Europe. Excluding the impact of these two items, adjusted net income for the current quarter was $47.8 million, an increase of 12.5 percent from the prior year quarter. Reconciliations from reported amounts to adjusted amounts are provided in the supplemental information at the end of this release.
“Steadily improving market trends in all of our segments fueled strong performance, particularly in our OEM Supply – Fasteners (“Fasteners”) segment and across all segments in Europe and Emerging Markets. For the fifth consecutive quarter we achieved significant performance improvements in our Fasteners segment, reflecting increases in our customers’ production levels coupled with the results of actions we took to reposition the business for profitable growth. We also experienced a solid recovery in our core enterprise communications business, with double-digit growth in both our Emerging Markets and European geographies,” commented Bob Eck, President and CEO. “Overall, we are encouraged by the solid performance within each of our segments across our global markets, reflecting the value of our global capabilities to an increasing number of global customers.”
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