Rexel reported a sales increase of 2.9% for the fourth quarter of 2012, compared to the same period in 2011. The Paris-based distributor of automation, technical supply, and energy management products saw its full-year sales grow by 5.8% over the prior year.
In the fourth quarter, Rexel recorded sales of 3,439.8 million EUR ($4,608 million USD), up 2.9% on a reported basis. The sales increase is being attributed to a positive currency effect of €104.5 million EUR ($139.3 million USD) created by the appreciation of the U.S., Canadian and Australian dollars and the British Pound against the euro. Rexel also benefitted from a positive effect of 197.9 million EUR ($265.12 million USD) from acquisitions and a negative calendar effect of 1.0 percentage point.
For the full-year, Rexel recorded sales of 13,449.2 million EUR (18,017.46 million USD), up 5.8% on a reported basis and down 1.8% on a constant and same-day basis. Excluding the negative 0.7 percentage point impact due to the change in copper-based cable prices, Rexel’s sales were down 1.1% on a constant and same-day basis.
Rexel reported EBITA up 1.3% in the fourth quarter and 6.2% for the full-year. For 2012, operating income was up 8%, recurring net income increased by 4.1%, and reported net income was up 0.8%.
In the fourth quarter, Rexel’s European sales decreased by 0.9% on a reported basis. North American sales rose 9.6% on a reported basis for the fourth quarter and 16.3% for the whole year.
During the fourth quarter, U.S. sales volume fell by 1.2%. Excluding the impact of the branch optimization program that was implemented in recent quarters (401 branches at December 31, 2012 vs. 418 branches at December 31, 2011), Rexel’s U.S. sales were up 1.0% during the fourth quarter (vs. +0.7% in the previous quarter), according to the company.
“2012 marked an important step forward for Rexel. In a very challenging market environment, Rexel demonstrated the robustness of its business model as well as its ability to generate solid profitability and substantial cash flow, enabling the Group to meet its full-year targets,” said Rudy Provost, CEO, in a press release.
“Thanks to focused resources allocation, enhanced partnerships with strategic suppliers and continuous commitment to excellence in serving customers around the world,” Provost added, “I am confident that Rexel will create significant value in 2013 and beyond.”
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