Infast Helps Anixter Deliver Strong Quarter

Jason Sandefur

Fastener revenue boosted sales growth at Anixter International during 2005. Infast, acquired July 8, 2005, contributed $126.4 million in sales during the second half of the year, with an additional $36.7 million coming from Distribution Dynamics, acquired during the first half of 2004.
Overall sales rose 17.4% to $3.85 billion, producing a 37% jump in operating income to $189.4 million. Annual profit climbed 22% to $90 million. Sales in North America increased 14.3% to $2.85 billion, while domestic operating income grew 34% to $161.3 million. Revenue from Europe in 2005 improved 31% to $726.1 million.
Infast drove European revenue increases during the final quarter of 2005. “The major factor driving European sales growth [of 37%] was the July 8, 2005, acquisition of Infast, which added $61.5 million to European sales in the quarter,” explained CEO Robert Grubbs.
Overall Q4 sales rose 21% to $1.03 billion, boosted by a 17% revenue increase in North America and double-digit gains in both Latin America and Asia. Operating income soared 32% to a record $54.7 million, while profit declined 21% to $20.1 million due to a $7.7 million tax provision for the “repatriation of accumulated foreign earnings.” Web: anixter.com �2006 FastenerNews.com