Financial Performance - Net sales for the first nine months of 2024 decreased by $592.7 million, or 3.5%, compared to the same period in 2023, primarily due to a volume decline of approximately 3%[96] - Income from operations for the first nine months of 2024 was $922.1 million, a decrease of $168.6 million, or 15.5%, compared to $1,090.7 million in the prior year[96] - Net sales for the third quarter of 2024 were $5.5 billion, a decrease of 2.7% from $5.6 billion in the third quarter of 2023[102] - Organic sales for the third quarter of 2024 declined by 0.6%, reflecting an estimated 2% decline in volume, driven by decreases in the EES and UBS segments[102] - Net income for Q3 2024 was $189.9 million, down from $219.0 million in Q3 2023, with diluted earnings per share of $3.81 compared to $4.20[110] - Adjusted EBITDA for Q3 2024 was $398.1 million, a decrease of $58.9 million, or 12.9%, year-over-year, primarily due to a $155.0 million decrease in net sales[111] - Net income for the first nine months of 2024 was $509.1 million, or $10.02 per diluted share, down from $580.5 million, or $11.08 per diluted share in 2023[135] - Adjusted net income attributable to common stockholders for the three months ended September 30, 2024, was $178.1 million, down from $234.4 million in the same period of 2023[125] Costs and Expenses - Cost of goods sold for the third quarter of 2024 was $4.3 billion, with a cost of goods sold percentage of 77.9%, down from 78.4% in the third quarter of 2023[103] - SG&A expenses for Q3 2024 totaled $831.1 million, an increase of $34.7 million, or 4.4%, compared to Q3 2023, representing 15.1% of net sales[104] - SG&A expenses increased by $43.1 million, or 1.8%, totaling $2,488.9 million for the first nine months of 2024, with SG&A as a percentage of net sales rising to 15.3% from 14.5% in 2023[129] - Digital transformation costs for the three months ended September 30, 2024, were $5.4 million, down from $12.9 million in the same period of 2023[123] - Digital transformation costs for the nine months ended September 30, 2024, amounted to $25.1 million, down from $36.1 million in the same period of 2023[156] Taxation - The provision for income taxes increased to $69.3 million in Q3 2024, resulting in an effective tax rate of 25.3%, up from 15.9% in Q3 2023[109] - Provision for income taxes for the three months ended September 30, 2024, was $69.3 million, an increase from $44.3 million in the same period of 2023[123][125] - The provision for income taxes was $188.1 million for the first nine months of 2024, resulting in an effective tax rate of 25.4%, up from 20.4% in the prior year[134] Divestitures and Business Changes - The divestiture of the WIS business negatively impacted net sales by 3.5% for the third quarter of 2024[100] - The company completed the sale of its integrated supply business on April 1, 2024, which contributed to the financial results for the first nine months of 2024[96] - Other non-operating income for Q3 2024 was $24.9 million, compared to an expense of $3.7 million in Q3 2023, including a gain of $19.3 million from the divestiture of the WIS business[107] Liquidity and Debt - As of September 30, 2024, the company had $1.2 billion in total available borrowing capacity under its Revolving Credit Facility[99] - As of September 30, 2024, the company had approximately $1.7 billion in liquidity, consisting of $1.2 billion in available borrowing capacity and $370.0 million in cash[154] - Total debt as of September 30, 2024, was $5,073.2 million, down from $5,364.6 million as of December 31, 2023[156] - The financial leverage ratio as of September 30, 2024, was 2.9x, compared to 2.8x as of December 31, 2023[156] - The maximum borrowing limit of the Revolving Credit Facility is $1,725 million, with $485.0 million outstanding as of September 30, 2024[158] Operational Metrics - The company employed approximately 20,000 people and served nearly 150,000 customers worldwide, maintaining relationships with over 50,000 suppliers[92] - Net cash provided by operating activities for the first nine months of 2024 totaled $824.6 million, a significant increase from $423.9 million in the same period of 2023[158] - Capital expenditures for the first nine months of 2024 were $70.4 million, compared to $63.6 million in the same period of 2023, focusing on digital transformation initiatives[161] Segment Performance - Electrical & Electronic Solutions (EES) reported net sales of $2,151.2 million for Q3 2024, a decrease of $39.5 million, or 1.8%, with organic sales declining by 2.9%[113] - Communications & Security Solutions (CSS) net sales increased by $177.1 million, or 10.0%, to $1,955.1 million in Q3 2024, with organic sales growing by 8.5%[116] - Utility & Broadband Solutions (UBS) reported net sales of $1,383.1 million for Q3 2024, a decrease of $292.6 million, or 17.5%, with organic sales declining by 7.2%[117] - Electrical & Electronic Solutions (EES) reported net sales of $6,423.1 million for the first nine months of 2024, a decrease of $103.0 million, or 1.6%, with organic sales declining by 1.8%[137] - Communications & Security Solutions (CSS) reported net sales of $5,491.1 million for the first nine months of 2024, an increase of $130.2 million, or 2.4%, with organic sales growing by 2.0%[140] - UBS reported net sales of $4,404.9 million for the first nine months of 2024, a decrease of 12.3% compared to $5,024.8 million for the same period in 2023[141]

Wesco International (WCC) reported $5.49 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 2.8%. EPS of $3.58 for the same period compares to $4.49 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $5.46 billion, representing a surprise of +0.55%. The company delivered an EPS surprise of +11.18%, with the consensus EPS estimate being $3.22.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Wesco International (WCC) came out with quarterly earnings of $3.58 per share, beating the Zacks Consensus Estimate of $3.22 per share. This compares to earnings of $4.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.18%. A quarter ago, it was expected that this maker of electrical and industrial maintenance supplies and construction materials would post earnings of $3.48 per share when it actually produced earnings of $3 ...

NEWS RELEASE WESCO International, Inc. / 225 West Station Square Drive, Suite 700 / Pittsburgh, PA 15219 Wesco International Reports Third Quarter 2024 Results • Third quarter reported net sales down 2.7% YOY due primarily to the Wesco Integrated Supply divestiture – Organic sales down 0.6% YOY and up 0.1% sequentially • Third quarter operating profit of $336 million; operating margin of 6.1% – Gross margin of 22.1%, up 50 basis points YOY and up 20 basis points sequentially – Adjusted EBITDA margin of 7.3% ...

PITTSBURGH, Oct. 14, 2024 /PRNewswire/ -- Wesco International (NYSE: WCC) will hold its third quarter 2024 earnings conference call on Thursday, October 31 at 10:00 a.m. ET. Dial-in details are below. The live audio webcast of the earnings presentation can be accessed at https://investors.wesco.com, where related materials will be posted prior to the presentation and a replay of the webcast will be available. In addition, Wesco will be participating in the Baird Industrial Conference on November 13, Stephen ...

PITTSBURGH, Sept. 26, 2024 /PRNewswire/ -- Wesco International (NYSE: WCC), will provide an update regarding its long-term growth strategy at its Investor Day meeting taking place in-person at its innovation center in Glenview, Ill. and online today at 9 a.m. Central Time. Wesco will share an update on its digitally enabled business transformation and expansive capabilities to support long-term growth and margin expansion. Consistent with prior expectations, over the long term it expects to achieve mid-sing ...

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PITTSBURGH, Aug. 29, 2024 /PRNewswire/ -- The Board of Directors of Wesco International (NYSE: WCC) today declared a quarterly cash dividend on all of the issued and outstanding shares of common stock, in an amount equal to $0.4125 per share. The dividend is payable on September 30, 2024 to the holders of record of the common stock at the close of business on September 13, 2024. In addition, the Board of Directors declared cash dividends on the company's 10.625% Series A Fixed-Rate Reset Cumulative Perpetua ...

WESCO International (WCC) reported second-quarter 2024 adjusted earnings of $3.21 per share, down 13.5% year over year. The bottom line lagged the Zacks Consensus Estimate by 7.76%. Net sales of $5.48 billion fell 4.6% year over year. The figure missed the Zacks Consensus Estimate by 1.48%. Organic sales declined 0.8% year over year. Top-Line Details EES (39.7% of Net Sales): Sales in the segment were $2.17 billion, down 1.2% year over year. Organic sales declined 0.6% year over year. CSS (34.1% of Net Sale ...

Financial Data and Key Metrics Changes - The second quarter results showed a low single-digit decline in reported sales, with organic sales down less than 1% year-over-year, impacted by market weakness in Utility & Broadband Solutions [4][8] - Free cash flow generation reached a record $500 million in the first half, with a full-year outlook of $800 million to $1 billion [5][31] - Adjusted EBITDA margin is now projected to be in the range of 7% to 7.3%, with a reduction in the full-year EBITDA outlook to $1.55 billion from $1.7 billion [30][31] Business Line Data and Key Metrics Changes - The EES business saw organic sales down about 1%, but there was stabilization in the top line, with sales in Canada up low single digits due to large project wins [14][15] - CSS sales were up approximately 1% year-over-year, with data center sales growing high teens, driven by AI applications [16][17] - UBS experienced a 3% decline in organic sales, with reported sales down 15% due to the integrated supply divestiture, reflecting short-term softness in the utility market [20][21] Market Data and Key Metrics Changes - The utility market is facing destocking and lower project activity, expected to continue through the end of the year, impacting sales [20][21] - Broadband sales declined high single digits, with delays in government funding affecting customer purchasing [21] - Overall quoting and bid activity levels remain healthy, supporting a view for sales growth in the second half against easier year-over-year comparisons [8][20] Company Strategy and Development Direction - M&A remains a critical component of the growth strategy, with two software-based acquisitions completed to enhance capabilities [5][6] - The digital transformation initiative aims to increase shareholder value through cost efficiencies and cross-sell opportunities [6] - The company is focused on long-term EBITDA margin expansion goals, with a commitment to return approximately 40% of operating cash flow to shareholders [24][31] Management's Comments on Operating Environment and Future Outlook - Management noted a mixed economic environment, with no cancellations in backlog but a slowdown in utility purchases extending into the second half [36][40] - Confidence in long-term growth remains, driven by trends in electrification, green energy, and grid modernization [52] - The company has adjusted its full-year sales outlook to reflect current market conditions, now expecting a decline of 1.5% to 3.5% [29][30] Other Important Information - The company plans to provide more details on its digital transformation and growth strategy at the upcoming Investor Day [33] - The Integrated Supply divestiture is expected to contribute approximately 30 basis points to full-year gross margin [55] Q&A Session Summary Question: Insights on pockets of weakness in the market - Management confirmed no cancellations in backlog, but noted a slowdown in utility purchases and extended destocking [35][36] Question: Impact of project delays versus destocking in utilities - The destocking continues, with capital spending being executed but not translating into new projects [39][40] Question: Changes in sales guidance and EBITDA expectations - The sales guidance was cut primarily due to Utility & Broadband Solutions, with a significant impact on EBITDA margins [44][45] Question: Performance of data center margins - Data center gross margins improved, but the enterprise network infrastructure faced contraction, impacting overall CSS margins [42][57] Question: Inventory levels at customer base - Inventory levels vary by customer, but overall purchasing has paused, leading to destocking [49] Question: Confidence in utility market recovery - Management expressed confidence in a temporary pause, citing long-term demand driven by electrification and green energy trends [50][52]