UPDATE 2-Wesco Q2 profit beat Street view

Thu Jul 24, 2008 6:36pm BST
 
Email | Print | | Single Page
[-] Text [+]

(Recasts, updates share movement, adds details from conference call)

BANGALORE, July 24 (Reuters) - Electrical construction products distributor Wesco International Inc (WCC.N) posted better-than-expected quarterly results, but margins slipped due toa tougher pricing environment.

Supplier price increases and higher delivery costs could prove to be a challenge in the year, the company said in a conference call.

Shares of the company fell more than 6 percent to $35.27 Thursday afternoon on the New York Stock Exchange.

The company posted second-quarter earnings of $60.1 million, or $1.38 a share, compared with $59.6 million, or $1.22 a share, a year earlier.

Sales rose 4.6 percent to $1.59 billion.

Gross margin for the quarter, however, fell to 19.5 percent from 20.3 percent a year ago.

Analysts on average were expecting earnings of $1.36 a share, excluding items, on revenue of $1.54 billion, according to Reuters Estimates.

The company forecast sales growth of 4 percent to 5 percent and rise in operating margin to a range of 6.3 percent to 6.6 percent for the third quarter on a sequential basis.  Continued...

 

Market Update

  • UKUK
  • USUS
  • Europe
  • Asia
  • UK Most Actives
Currency
US $ inGBP =0.6170
Euro inGBP =0.8595
¥en inGBP =0.0067

Most Popular on Reuters UK

  • Articles
  • Videos