Sunday, 3 March 2024

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Wesco International Reports Fourth Quarter and Full Year 2023 Results – TipRanks Financial Blog

Wesco International (PRNewsfoto/Wesco International)

  • Fourth quarter net sales down 2% YOY, organic sales down 3%
  • Fourth quarter operating profit of $316 million; operating margin of 5.8%
    • Adjusted EBITDA margin of 7.0%, down 110 basis points sequentially and YOY
  • Full-year record net sales up 5% YOY, organic sales up 3% 
  • Full-year operating profit of $1.4 billion; operating margin of 6.3%
    • Adjusted EBITDA margin of 7.6%, down 50 basis points YOY
  • Effectively managing financial leverage and revising target range to 1.5x-2.5x
  • 2024 outlook is for sales growth of 1% to 4% and adjusted EBITDA margin of 7.5% to 7.9%
    • Free cash flow of $600$800 million

PITTSBURGH, Feb. 13, 2024 /PRNewswire/ — Wesco International (NYSE: WCC), a leading provider of business-to-business distribution, logistics services and supply chain solutions, announces its results for the fourth quarter and full year 2023.

“Fourth quarter results were below our expectations, capping off a year that was unique in my time as Wesco’s CEO. On a full year basis, certain sectors including utility, data center, industrial, security, and network infrastructure continued to grow, while others underperformed including broadband, specific-OEM and construction related sectors. As a leading global provider of business-to-business supply chain solutions, Wesco navigated through this mixed economic environment while managing changing customer buying patterns as supply chains healed. I’m proud that our team delivered approximately 5% revenue growth in 2023 following two years of double-digit increases. The fourth quarter was disappointing as our stock and flow sales were below our expectations and we saw delays in certain projects that were anticipated to ship in December. Fourth quarter sales declined by 2%, noting the strong 2022 base period with sales up 15%. That said, our quoting and bid levels were very healthy during the fourth quarter, with total backlog stable compared to the end of September,” said John Engel, Chairman, President and CEO.

Mr. Engel continued, “The long-term secular growth trends that we have consistently described will continue to provide Wesco with the opportunity to outperform the market and our competition. While we view the general economic conditions in 2024 as favorable, we are mindful of the uncertain backdrop the election cycle, easing inflation, geopolitical upheaval, and short-term borrowing rates may have on demand. Regardless of these near-term…

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