9/14/2009
NEWS BRIEFS
Suit Filed Against Anixter Over Earnings Report

The law firm Izard Nobel LLP announced a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of Illinois on behalf of those who purchased the common stock of Anixter International Inc. between January 29, 2008 and October 20, 2008.

“The Complaint charges that Anixter and certain of its executives violated federal securities laws by issuing materially false and misleading statements concerning Anixter’s business and prospects,” the firm stated. “Specifically, defendants failed to disclose … that Anixter was in a pricing dispute with one of its Original Equipment Manufacturer (“OEM”) customers, which would cost the company approximately $3 million; that Anixter was experiencing a decrease in sales in the European and Asian markets due to decreased demand for the Company’s products; and that Anixter was experiencing operating margin pressure due to slower sales in its OEM supply business, which traditionally produce higher operating margins.”

On October 21, 2008, Anixter, which owns Anixter Fasteners, reported sales rose 5% to $1.59 billion during the third quarter, while net income dropped 4.7% to $61.7 million.

“On this news, the company’s common stock fell $18.76 per share, or approximately 40%, over the next five trading days, to close at $29.06 per share, on October 27, 2008,” the law firm stated.

At the time Anixter said it was bracing for “a number of customer production cutbacks in response to softening economic conditions in Europe.”

During the third quarter of 2008, Anixter reported North American OEM sales, including fasteners, grew 18% $140 million. ©2009 GlobalFastenerNews.com

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• Anixter