7/27/2010
NEWS BRIEFS
Anixter Fastener Segment Achieves 20% Growth Worldwide
Anixter International reported sales at its worldwide OEM supply business, including Anixter Fasteners, grew 20% in the second quarter of 2010. Sequentially worldwide OEM supply sales were up 3% organically from a very strong first quarter. Europe experienced a 7% sequential increase in organic sales which was partially offset by relatively flat sequential sales in rest of the world, according to a transcript provided by Seeking Alpha.
“The growth was coming from three sources, increased production rates of our customers, extending our programs at existing customers to include more products and new contract wins,” stated CFO Dennis Letham.
Sales at its North American OEM Supply segment, including fasteners, achieved organic gains of 7.2% to $131.6 million during the second quarter of 2010, boosted by 16% growth with industrial customers. North American OEM Supply sales included “an 8% decrease in aerospace and defense sales where the recession cycle downward pressure didn’t begin to materialize until the second quarter of 2009 and it is expected to the muted until the middle of 2011.”
“Having experienced significant organic sales declines in the OEM supply end market for almost two years, the replenishment of depleted inventory levels of our customers, products combined with higher levels of capital spending in many customer vertical markets continue to present compelling opportunities for us to grow our sales with existing customers as well as with new customers,” the company stated.
Six-month OEM Supply sales in North America slipped 2% to $262.3 million.
OEM Supply sales in Europe jumped 38.6% to $97.6 million in Q2, achieving Anixter’s “highest year-on-year growth in this quarter.”
Six-month OEM Supply sales in Europe increased 23% to $184.2 million. ©2010 GlobalFastenerNews.com
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