Thu, Aug 1, 8:36 PM (88 days ago)
WESCO International, Inc. reported a net sales decrease of 4.6% for Q2 2024, totaling $5.5 billion, primarily due to volume declines and the divestiture of its WIS business. Despite a reduction in cost of goods sold, gross profit margins were slightly pressured. SG&A expenses remained flat at $828.4 million, with notable costs including a $17.8 million loss on abandoned assets and $6.1 million in digital transformation expenses. Income from operations fell by 11.1% to $323.5 million. Net income attributable to common stockholders rose to $217.7 million, or $4.28 per diluted share, driven by a $102.9 million gain from the WIS divestiture. Adjusted EBITDA declined by 9.5% to $400.1 million. For the first six months, net sales decreased by 3.9% to $10.8 billion. Operating cash flow improved significantly to $522.5 million, aided by favorable working capital changes. Financing activities included the redemption of $1.5 billion in senior notes, offset by new debt issuance. The company maintains strong liquidity with $1.5 billion in available resources. Future focus includes share repurchases, debt reduction, and digital transformation investments.