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Illustration 60886103 / Kheng Ho To / Dreamstime
Illustration 60886103 Kheng Ho To / Dreamstime
60886103 / Kheng Ho To / Dreamstime

WESCO to Consolidate Branches Because of Slow Start to 2015

April 23, 2015
Engel said in a press release that WESCO’s capital structure is in good shape and that the company’s acquisition pipeline is robust.

WESCO International Inc., Pittsburgh, logged some softer financials in 1Q 2015, with net income for the current quarter down 9.4% to $47 million from $51.9 million in 1Q 2015, and a 0.3% YOY net sales increase to $1,816.3 million. Gross profit was $367.7 million, or 20.2% of sales, for 1Q 2015, compared to $374.8 million, or 20.7% of sales, for 1Q 2014.

John Engel, WESCO’s chairman and CEO, said in a press release that WESCO’s capital structure is in good shape and that the company’s acquisition pipeline is robust. Based on the first-quarter results, he said the company is revising its full-year outlook to -3% to 3% sales.

“We expect reduced demand in commodity-driven industrial end markets and foreign exchange headwinds to continue throughout this year,” he said. “As a result, we are taking additional actions to accelerate our One WESCO sales initiatives and simplify and streamline our business. These actions include consolidating a series of branches and reducing structural costs while adding to our sales force to address underserved territories and customer accounts. Our One WESCO strategy continues to drive our long-term value proposition, particularly for customers looking to reduce their supply chain costs.”