International Contracts Spur Wesco Sales

November 06

00:00 2013

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MEDIA SPOTLIGHT – The strength of the aerospace industry is demonstrated by Wesco Aircraft Holdings Inc., the Los Angeles Times reported.

Southern California-based Wesco manages aerospace supply chains with more than 525,000 parts and components include fasteners, fittings, nuts, bolts, bushings, clamps, collars, pins, screws and washers.

“Lately, Wesco has been going full throttle,” the LA Times reported. Wesco’s sales rose 21.6% to $230.2 million for its quarter ended June 30, 2013. Net income jumped 30.6% over the same year-earlier quarter to $29.5 million.

“During the quarter, we continued our strategy of pursuing new customers, selling new product lines to existing customers and gaining long-term relationships,” Wesco CEO Randy Snyder told LA Times reporter Ronald White.

His father, Jack Snyder, founded the company in 1953 to deal in scrap metal and hardware. Wesco focused on aircraft parts when Randy Snyder took over as CEO in 1977.

In 1993, Wesco won Boeing’s first JIT parts distributing contract.

In 2004 and 2005 Wesco added sales facilities in Germany and Italy to earlier France and Britain offices.

In 2006, asset management firm Carlyle Group became a majority owner. Five years later, Wesco raised $315 million in an initial public offering, selling 21 million shares at $15 each.

In 2010 Wesco expanded into China. Last year Wesco opened in India and acquired Canadian aerospace parts distributor Interfast Inc.

Last spring Wesco announced a “milestone agreement” with French aircraft manufacturer Airbus to supply fasteners and hardware components to several production facilities.

Wall Street analysts said it was another positive sign for Wesco.

“We remain believers in Wesco’s business model and customer value proposition and see upside to earnings from continued customer production growth, market share gains and realization of operating leverage,” William Blair analyst Ryan Merkel told the LA Times.

Wesco expanded internationally even during the global recession. Sales growth may have slowed, but not total sales.

Today Wesco has 42 sales and stocking offices in 12 countries.

Military sales are flat, but Wesco is focusing on commercial and civilian aerospace sectors.

Wesco finance chief Gregory Hann, Wesco Aircraft’s finance chief, pointed out that commercial growth “propelled our 14% organic growth in both our second and third quarters of our fiscal year 2013.” Web: Wesco.com

Editor’s Note: Articles in Media Spotlight are excerpts from publications or broadcasts, which show the industry what the public is reading or hearing about fasteners and fastener companies.

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