Economic slowdown and the drop in commodity prices hurt earnings.
Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener.
On Feb. 3, 2009, Anixter International (AXE) reported that its Q4 FY08 earnings plummeted 86.7% weighed down by deteriorating economic conditions, falling commodity prices and bad debt losses. Net income declined to $9.40 million or $0.26 per share from $70.50 million or $1.69 per share in Q4 FY07. Excluding certain items, earnings were $42.60 million or $1.17 per share, which beat the most recent consensus estimate of $1.06 per share.
During Q4 FY08, AXE's revenue inched down 2.2% to $1.46 billion from $1.49 billion a year ago, due to $97.50 million loss in unfavorable exchange rates, offset by $49.20 million gain from acquisitions.
Geographically, revenue from North America inched down to $1.03 billion, as Enterprise Cabling and Security and Wire & Cable sales dipped 6.3% and 1.5% to $536.90 million and $353.50 million, respectively. Nevertheless, sales in the OEM supply market mounted 34.4% to $149.10 million from $110.90 million. Revenue from Europe declined 14.3% to $275.30 million, as Enterprise Cabling and Security and OEM sales dropped 18.8% and 18.5% to $98.40 million and $123.70 million, respectively. However, in Europe, Wire & Cable sales advanced 10.4% to $53.20 million from $48.20 million a year ago. Moreover, sales in the emerging Asian and Latin American markets advanced 13.2% to $148.70 million, led by organic growth of 21.0%.
For FY08, net income declined 22.8% to $195.70 million or $5.07 per share from $253.50 million or $6.00 per share in FY07. Revenue increased 4.8% to $6.14 billion from $5.85 billion a year ago.
Looking ahead to FY09, Anixter expects production cut backs in the OEM supply business and volume declines in Enterprise Cabling and Security business. The company also anticipates that acquisitions will add approximately $147.00 million to sales.
A detailed report covering this quarterly release is now available. To purchase the report, click here.