ANIXTER INT’L SEES STRONG CASH FLOW DESPITE WEAK Q4
Anixter Int’l, a distributor of communication products, says it expects fourth quarter 2001 sales to be approximately $660 to $665 million. This result falls short of projections made by management and released on Oct. 23, 2001.
Commenting on the release, Robert Grubbs, president and CEO of Anixter, says, “Sales patterns in much of the fourth quarter were similar to the third quarter. However, the two holiday weeks in the fourth quarter were significantly slower than historical patterns due to continued softness in the overall economy. Many of our contractor customers used the holiday period as an opportunity to furlough workers as an expense savings opportunity, primarily due to the soft economy. On a positive note, much of this appeared to be event-driven with respect to the holiday season and is not likely to continue in the first quarter of 2002.”
Grubbs went on to add, “The lower sales again allowed us to make significant reductions in working capital. As a result we had stronger than anticipated cash flow.” Anixter reports that earnings for this period will be within the range of $6.8 to $7.5 million or 18 to 20 cents per share.
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