WESCO International, Inc. (WCC) has reported a 4.72 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $37.70 million, or $0.76 a share in the quarter, compared with $36 million, or $0.77 a share for the same period last year. Revenue during the quarter went down marginally by 0.19 percent to $1,772.60 million from $1,776 million in the previous year period. Gross margin for the quarter contracted 25 basis points over the previous year period to 19.75 percent. Total expenses were 96.21 percent of quarterly revenues, up from 96.09 percent for the same period last year. That has resulted in a contraction of 13 basis points in operating margin to 3.79 percent.
Operating income for the quarter was $67.10 million, compared with $69.50 million in the previous year period.
Mr. John J. Engel, WESCO's chairman, president and chief executive officer, commented, "Our first quarter results were in line with our expectations and the outlook we provided in January. Our sales results reflect improving momentum in our business, driven by a return to growth in Industrial and in Canada. Operating margin was also in line with our expectations, as we continue to execute our cost management and supply chain initiatives in a still-challenging and demand-constrained pricing environment. Net income grew in the quarter, and we once again delivered strong free cash flow, enabling us to reduce our debt and further improve our financial leverage ratio. Based upon our first quarter results, we reaffirm our full-year expectations of sales in the range of flat to up 4%, EPS of $3.60 to $4.00 per diluted share, and free cash flow generation of at least 90% of net income."
Operating cash flow drops significantly
WESCO International, Inc. has generated cash of $47.60 million from operating activities during the quarter, down 39.44 percent or $ 31 million, when compared with the last year period. The company has spent $4.50 million cash to meet investing activities during the quarter as against cash outgo of $62.10 million in the last year period.
The company has spent $50.70 million cash to carry out financing activities during the quarter as against cash outgo of $34.80 million in the last year period.
Cash and cash equivalents stood at $103 million as on Mar. 31, 2017, down 30.31 percent or $44.80 million from $147.80 million on Mar. 31, 2016.
Working capital remains almost stable
WESCO International, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,283.30 million as at Mar. 31, 2017, down 0.61 percent or $7.84 million from $1,291.14 million on Mar. 31, 2016. Current ratio was at 2.39 as on Mar. 31, 2017, up from 2.31 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 40 days for the quarter from 68 days for the last year period. Days sales outstanding went down to 58 days for the quarter compared with 61 days for the same period last year.
Days inventory outstanding has decreased to 27 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went down to 45 days for the quarter from 46 for the same period last year.
Debt comes down
WESCO International, Inc. has recorded a decline in total debt over the last one year. It stood at $1,339.10 million as on Mar. 31, 2017, down 9.94 percent or $147.75 million from $1,486.85 million on Mar. 31, 2016. Total debt was 29.68 percent of total assets as on Mar. 31, 2017, compared with 31.70 percent on Mar. 31, 2016. Debt to equity ratio was at 0.65 as on Mar. 31, 2017, down from 0.79 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
