Anixter International (AXE), a leading global distributor of enterprise cabling and security solutions, has announced a 16.70 percent rise in profit for the quarter ended Jul. 04, 2014. The company earned $53.80 million or $1.61 a share in the second-quarter compared with $46.10 million or $1.40 a share a year ago. Analysts on average had predicted net income of $1.64 a share.

Revenue during the second-quarter went up marginally 0.41 percent to $1,586 million from $1579.50 million in the last year period.

Gross margin expanded by 34 basis points over the last year period to 22.88 percent. Total expenses as a percentage of revenues decreased to 94.17 percent from 94.57 percent in the same period last year. That has resulted in improvement of 39 basis points in operating margins to 5.83 percent.

The company reported operating income of $92.40 million, compared with $85.80 million in the previous year period.

"We were pleased to achieve continued strong results across our European and Emerging Markets geographies, as steadily improving markets, combined with our unique global capabilities, offer a compelling value proposition to an increasing number of global customers. This is the sixth consecutive quarter we have achieved significant performance improvements in our OEM Supply - Fasteners segment, reflecting operational actions we took to reposition the business for profitable growth," commented Bob Eck, president and CEO.

Cash Flow

Anixter International has generated cash of $86.70 million from operating activities during the first half, down 23.75 percent or $27 million when compared with the last year period. The company has generated 2.79 cents of operating cash flow in every sales dollar for the first half, down from 3.70 cents in the same period last year.

The company has spent $17.10 million cash to meet investing activities during the first half, as against cash outgo of $17.90 million in the last year period.

The company has spent $7.40 million cash to meet financing activities during the first half, as against cash outgo of $125.80 million in the last year period. It has made net repayment of $13 million debt during the first half. It has raised net of $4.20 million by selling common stocks.

As on Jul. 04, 2014, the company's cash balance stood at $121.40 million, up 111.50 percent or $64 million from Jun. 28, 2013.

Working Capital

Anixter International has witnessed an increase in the working capital over the last one year. The company's working capital stood at $1469.40 million as at Jul. 04, 2014, up $53.70 million or 3.79 percent from $1415.70 million on Jun. 28, 2013. It registered a decrease in current ratio to 2.50 as at Jul. 04, 2014 from 2.51 on Jun. 28, 2013.

Shares of the company close at $93.97 on Monday.