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| Anixter International Inc. Comments on Sales and Earnings Outlook
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| Glenview, IL, June 27, 2003 – Anixter International Inc. (NYSE: AXE), the world’s leading distributor of communication products, electrical and electronic wire & cable and a leading distributor of fasteners and other small parts (“C” Class inventory components) to Original Equipment Manufacturers, today commented on current sales trends and their expected impact on earnings.
Robert W. Grubbs, President and CEO, said, “Over the past several months we have seen very steady, but flat, daily sales. The current market can best be categorized as one where customers are focused primarily on doing maintenance spending and smaller projects. In this environment, customers are continuing to approach larger capital projects in a very cautious manner, and spending money only when they absolutely must.”
“This very cautious approach to capital spending has meant that we have not seen the historical seasonal pick up in sales in the second quarter. In addition, there are also three fewer shipping and billing days in the second quarter compared to the two prior quarters. As a result, while we expect the second quarter to show comparable daily sales rates to the last two quarters, the fewer number of shipping and billing dates will generate a drop in total sales compared to the past couple of quarters.”
Commenting on the number of shipping and billing days, Grubbs said, “Our fiscal first quarter had no significant holidays and, as such, had 65 shipping and billing days. Looking back to the fourth quarter the large number of holidays was offset by the fact that our fiscal calendar resulted in a 14 week quarter, so we effectively had 65 shipping and billing days in that quarter as well. The current quarter has the Good Friday, Memorial Day and July 4th holidays, which effectively leaves us with only 62 working days.”
“For the second quarter, the fewer number of shipping and billing days, at the same daily sales rates as the past two quarters, will result in sales of between $630 and $640 million,” commented Grubbs. “Looking forward, until we see a stronger level of overall economic recovery and in particular a pick up in capital spending, a continuation of the flat daily sales rates will produce some volatility in quarterly sales based on the varying number of working days. In particular, as we look at the balance of fiscal 2003, the number of shipping and billing days will increase from 62 days in the current quarter to 64 days in the third quarter, but will then fall to 60 days in the fourth quarter when we have Thanksgiving, Christmas and New Years all occurring on Thursdays.”
Grubbs concluded, “For the current quarter, sales of $630 to $640 million will likely result in earnings per share of between 25 and 27 cents per diluted common share.”
About Anixter
Anixter International is the world’s leading distributor of communication products, electrical and electronic wire & cable and a leading distributor of fasteners and other small parts (“C” Class inventory components) to Original Equipment Manufacturers. The company adds value to the distribution process by providing its customers access to 1) more than 185,000 products and nearly $500 million in inventory, 2) 142 warehouses with more than 4.4 million square feet of space, and 3) locations in 175 cities in 40 countries. Founded in 1957 and headquartered near Chicago, Anixter trades on The New York Stock Exchange under the symbol AXE.
Safe Harbor Statement
The statements in this news release that use such words as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “estimate,” “plan,” “should,” “may,” or similar expressions are forward-looking statements. They are subject to a number of factors that could cause the company’s actual results to differ materially from what is indicated here. These factors include general economic conditions, technology changes, changes in supplier or customer relationships, exchange rate fluctuations, and new or changed competitors. Please see the company’s Securities and Exchange Commission filings for more information.
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