Anixter International Q4 Profit Rises - Update

(RTTNews) - Anixter International Inc. (AXE: News ), a provider of communications, specialty wire and cable products, Tuesday reported a rise in profit for the fourth quarter, reflecting lower operating expenses and an income tax benefit, compared to a tax expense last year. Net sales were down 17% from the prior year.

The Glenview, Illinois-based company's net income for the fourth quarter rose to $12.7 million or $0.35 per share from $7.4 million or $0.20 per share last year.

Results for the quarter include foreign exchange losses of $13.8 million and the re-measurement of Bolivar denominated assets at the parallel exchange rate together with $2.3 million of net losses associated with the early retirement of debt.

Excluding unusual items, net income was $18.3 million or $0.50 per share, as compared to $40.6 million or $1.11 per share in the year-ago quarter.

On average, nine analysts polled by Thomson Reuters expected earnings per share of $0.52 for the quarter. Analysts' estimates typically exclude one-time items. Net sales for the fourth quarter declined 17% to $1.22 billion from $1.46 billion in the year-ago quarter, reflecting unfavorable copper prices. Eight analysts estimated revenues of $1.21 billion for the quarter.

By geography, net sales from North America declined to $0.85 billion from $1.03 billion last year. European sales were $230.3 million, down from $275.3 million in the prior-year quarter. Asia Pacific and Latin American net sales declined to $131.9 million from $148.7 million a year ago.

Cost of goods sold was $0.94 billion, compared to $1.12 billion in the previous year. Gross profit for the quarter was $272.6 million, compared to $337.5 million a year ago.

Operating expenses declined to $225.7 million from $286.8 million in the comparable quarter last year.

Income tax benefit for the quarter was $0.9 million, compared to a tax expense of $9.9 million a year ago.

For fiscal 2009, net loss was $29.3 million or $0.83 per share, compared to a net income of $187.9 million or $4.87 per share in the previous year. Net sales for the year declined to $3.85 billion from $4.69 billion last year.

Analysts expected earnings of $2.16 per share on revenues of $4.98 billion for the fiscal year 2009.

Assuming positive trends in macro economic conditions continue, the company said it would anticipate seeing some growth in sales by the middle of 2010.

AXE is currently trading at $41.03, down 0.28 or 0.68% on a volume of 1.67 million shares on the NYSE.

To receive FREE breaking news email alerts for Anixter International Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com