Anixter Profit and Sales Rise
Anixter Profit and Sales Rise
Jason Sandefur
Anixter International Inc.’s profits more than doubled to $16.8 million during the second quarter of 2004, enhanced by an improved economic climate and new products. Q2 sales surged 26% to $813.1 million, boosted by $26.2 million in sales from recently acquired Walters Hexagon Group. Anixter Pentacon sales grew 23% on improved customer demand and the addition of new customers. Overall domestic sales during Q2 grew 23% to $628.5 million, while sales in Asian and European also grew. Anixter said the weak U.S. dollar added $10.7 million to quarterly sales.
The acquisition of bankrupt Distribution Dynamics Inc. for about $33 million during the second quarter did not affect revenue, Anixter reported. CEO Robert Grubbs highlighted the “outstanding list of blue-chip, multi-national customers” Anixter acquired in the DDI deal. “When combined with the recent acquisitions of Pentacon and Walters Hexagon, we now have a business with annual sales in excess of $375 million per year supplying fasteners and other small parts to original equipment manufacturers. In this business we now have over 1,000 employees in 44 locations covering all of the US and UK as well as locations in Canada, France and Italy,” Grubbs stated.
For the first six months of 2004, Anixter sales grew 21% to $1.57 billion, producing a 43% jump in operating income to $62.7 million. First half sales included revenue of $49.9 million from Walters Hexagon.
Anixter warned that revenue growth trends for the first and second quarters may not hold for the second half of 2004. “This will be particularly true as we look toward the fourth quarter and the effects of holidays on activity level,” Grubbs noted. Web: anixter.com �2004 FastenerNews.com
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