WESCO International, Inc. (WCC), a provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services, said that its net income attributable to the company for the first quarter of 2014 was $51.9 million down 38% from $84.0 million in the prior year quarter. Earnings per share for the first quarter were $0.97 per share, compared to $1.60 per share last year.
First quarter 2014 net income attributable to the company decreased 11.3% from prior year adjusted net income attributable to the company of $58.5 million. Earnings per share in the first quarter of 2014 decreased 13.4% from adjusted earnings per diluted share of $1.12 in the corresponding prior year period.
Net sales for the quarter were $1.811 billion, compared to $1.808 billion last year, an increase of 0.2%. Organic sales increased 1.6%, acquisitions positively impacted sales by 0.5%, and foreign exchange negatively impacted sales by 1.9%.
Analysts polled by Thomson Reuters expected the company to report earnings of $1.07 per share and revenues of $1.83 billion for the quarter. Analysts' estimates typically exclude special items.
John J. Engel, WESCO's Chairman and Chief Executive Officer, said, "Our first quarter results reflect an improving U.S. economy largely offset by the impacts of severe winter weather conditions in both the U.S and Canada. Sales in the U.S. were up approximately 3% with mid-single digit organic sales growth in all of our end markets, except construction, where sales declined primarily due to weather related project delays. Sales in Canada declined approximately 4% organically versus last year. While we face near-term foreign exchange headwinds in Canada, we continue to view that market favorably. After a slow start in January, sales momentum improved through the quarter and has further accelerated in April."
The company expects business conditions to improve this year with a strengthening recovery in non-residential construction.
Looking ahead to fiscal 2014, the company still expects earnings to be in a range of $5.30 to $5.70 per share, on projected sales growth of 3 to 6 percent. Street currently is looking for fiscal year 2014 earnings of $5.52 per share on annual revenues of $7.83 billion.
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