WESCO revises forecast down, closes branches

WESCO International Inc., Pittsburgh, in the face of continued slowness in some of its key markets, especially in Canada, made some changes recently discussed in an earnings call by the company’s chairman and CEO, John Engel. The company eliminated approximately 300 positions during the quarter and closed or consolidated six branches, and has identified additional personnel reductions and branch closures and consolidations that will be completed during the second half.

“Our second quarter sales declined 4% reflecting continued foreign exchange headwinds and weakness in the industrial market as well as a slow seasonal start in the non-residential construction market,” Engel said. “For the quarter, organic sales in the U.S. were flat while organic sales in Canada declined 7%. Business mix, rebate accruals, and a continued competitive pricing environment drove gross margin lower while cost reduction actions partially mitigated the impact on earnings per share, which was lower than prior year. (…) Based on our second quarter results and a challenging market outlook, we are revising our full year outlook for sales growth of -3% to flat.”