7/29/2014 3:20:00 PM
NEWS BRIEFS
Anixter Fastener Sales Achieve Organic Growth
Anixter International reported OEM Supply – Fasteners sales increased 3.4% to $243.1 million in the second quarter of 2014. “Excluding the $6.1 million favorable impact from foreign exchange, organic sales increased by 0.8% year-over-year.”
The company said that excluding the $11.6 million impact resulting from the previously disclosed transition of an existing customer to dual source supply, organic fastener sales growth would have been 6.1%.
On a sequential basis, sales decreased by 2.6% primarily due to two fewer billing days in the current quarter.
Second-quarter Fasteners sales in North America declined 3.8% to $98.7 million, while fastener sales in Europe edged up 0.3% to $114.2 million and Emerging Markets sales increased 29.4% to $24.1 million
Fasteners operating income more than doubled to $12.2 million, operating margins of 5% compared to operating margins of 2.4% in the prior year quarter and 5.1% in the first quarter of 2014.
“The improvement in operating margin versus the prior year is due to strong cost control actions as we continue to align the business with market conditions,” the company stated.
Fastener sales during the first six months of 2014 improved 6.4% to $492.6 million, with segment operating income more than doubling to $25 million.
“North America heavy truck customer production rates steadily improving, offset by softer trends in our agriculture and generator set customer verticals,” the company stated.
Six-month Fasteners sales in North America dipped 1.4% to $766.5 million, while sales in Europe improved 2.1% to $232.9 million and Emerging Markets sales gained 40.7% to $47.3 million.
Overall Q2 sales at Anixter increased 0.4% to $1.59 billion, with net income gaining 17% to $53.8 million.
“With solid momentum in the second quarter in all of our segments in our European and Emerging Markets geographies, and evidence of improving sales trends in our North American markets, we believe we are well-positioned for accelerating growth in the second half of the year.”
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