Wesco International (WCC) has reported 2.07 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $47.40 million, or $0.96 a share in the quarter, compared with $48.40 million, or $1.03 a share for the same period last year.
Revenue during the quarter dropped 3.66 percent to $1,793.30 million from $1,861.50 million in the previous year period. Gross margin for the quarter contracted 9 basis points over the previous year period to 19.44 percent. Total expenses were 95.42 percent of quarterly revenues, up from 95.17 percent for the same period last year. That has resulted in a contraction of 26 basis points in operating margin to 4.58 percent.
Operating income for the quarter was $82.10 million, compared with $90 million in the previous year period.
Mr. John J. Engel, WESCO's chairman and chief executive officer, stated, "Fourth quarter results were in line with our expectations, and results for the full year were within the outlook range provided in December 2015. Normalized organic sales declined versus prior year but grew sequentially, reflecting improving momentum in our business, and our first Q4 sequential sales growth in five years. Operating margin was also in line with our expectations, as we took additional actions to reduce our costs and improve productivity. Free cash flow generation remained strong, enabling us to reduce our debt and get back within our target financial leverage range."
For fiscal year 2017, Wesco International projects revenue to grow at 4 percent. The company expects diluted earnings per share to be in the range of $3.60 to $4.
Operating cash flow improvesWesco International has generated cash of $300.20 million from operating activities during the year, up 6.04 percent or $17.10 million, when compared with the last year. The company has spent $70.50 million cash to meet investing activities during the year as against cash outgo of $170.30 million in the last year.
The company has spent $276.20 million cash to carry out financing activities during the year as against cash outgo of $67.80 million in the last year period.
Cash and cash equivalents stood at $110.10 million as on Dec. 31, 2016, down 31.32 percent or $50.20 million from $160.30 million on Dec. 31, 2015.
Working capital decreases marginally
Wesco International has witnessed a decline in the working capital over the last year. It stood at $1,275.60 million as at Dec. 31, 2016, down 2.61 percent or $34.13 million from $1,309.73 million on Dec. 31, 2015. Current ratio was at 2.42 as on Dec. 31, 2016, up from 2.38 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 31 days for the quarter from 29 days for the last year period. Days sales outstanding were almost stable at 27 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 26 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.
Debt comes downWesco International has recorded a decline in total debt over the last one year. It stood at $1,385.20 million as on Dec. 31, 2016, down 6.62 percent or $98.20 million from $1,483.40 million on Dec. 31, 2015. Total debt was 30.84 percent of total assets as on Dec. 31, 2016, compared with 32.34 percent on Dec. 31, 2015. Debt to equity ratio was at 0.69 as on Dec. 31, 2016, down from 0.84 as on Dec. 31, 2015. 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: editor@irisindia.net
