WESCO International (NYSE:WCC) shares fell as fourth-quarter earnings came out this morning.
Net sales were $4.1 billion for the fourth quarter of 2020 compared to $2.1 billion for the fourth quarter of 2019, an increase of 96.7% due to the merger with Anixter that was completed on June 22, 2020, partially offset by the impact of weakened demand from the COVID-19 pandemic. Net sales for the fourth quarter of 2020 were up 4.4% sequentially compared to the third quarter that had an additional three work days.
Operating profit was $92.8 million for the fourth quarter of 2020, compared to $83.8 million for the fourth quarter of 2019. Operating profit as a percentage of net sales was 2.2% for the current quarter, compared to 4.0% for the fourth quarter of the prior year.
Earnings per diluted share were $0.11. Adjusted earnings per diluted share were $1.22
WCC maintained operating cash flow of $125 million. Free cash flow was 161% of adjusted net income.
"Fiscal 2020 will be remembered as one of the most important in WESCO’s history. We completed the transformational acquisition of Anixter, doubling our size and changing our trajectory for years to come. We designed and launched a three-year integration plan which in just six months has delivered synergies in excess of our initial targets," said CEO John Engel.
WCC shares stumbled $17.24, or 19.3%, to $72.09.
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