5/8/2013 2:24:00 PM
HEADLINES
STOCKS: Anixter Fastener Segment Sees “Significant” Profit Growth
Anixter International reported OEM Supply sales, including results from Anixter Fasteners, declined 12% to $228 million “caused by a year-over-year decline in heavy truck production levels in North America and continuing weaker manufacturing production levels in Europe.”
Sequentially sales improved 13.8%, with “double-digit sequential sales growth in each region.” This performance resulted in a 350 basis point improvement in segment operating margin versus the prior quarter, excluding the 2012 fourth quarter impairment, pension-related and restructuring charges of $25.9 million.
“The single biggest driver in that year-over-year profitability for the OEM Supply segment is absolutely volume and its impact on our cost leverage,” CEO Robert Eck stated in a conference call transcribed by SeekingAlpha.com.
“Keep in mind that last year for the first 5 months, we had an extremely strong level of production activity within the heavy truck business, which represents about 40% of our North American volume and almost 20% of our global volume in (the OEM Supply) segment.”
Eck said the OEM Supply segment saw a “significant improvement in profitability, including Europe fasteners being profitable, which was not the case last year.”
Overall Anixter sales dropped 2.1% to $1.49 billion during Q1. ©2013 GlobalFastenerNews.com
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