Wesco International (NYSE: WCC), Pittsburgh, Pa., a provider of business-to-business distribution, logistics services and supply chain solutions, reported sales for the fourth quarter ended Dec. 31, 2023, were $5.5 billion, down 1.5% from the prior-year period.
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Organic sales were down 2.6%. The decrease in organic sales reflects volume declines in certain businesses, partially offset by growth in industrial, utility, data center and network infrastructure and price inflation. Backlog at the end of the fourth quarter of 2023 declined by 10% compared with the end of the fourth quarter of 2022. Sequentially, backlog declined by 1% in the quarter.
Profit was $142.6 million for the quarter.
Fourth-quarter results by segment:
- EES reported sales of $2 billion for the fourth quarter of 2023, a decrease of 3.9%. Organic sales for the fourth quarter of 2023 declined 4.1%. The decrease in organic sales reflects declines in construction and original equipment manufacturers, partially offset by continued positive momentum in industrial, price inflation and the benefits of cross-selling.
- CSS reported sales of $1.8 billion for the fourth quarter of 2023, an increase of 1.6%. Organic sales for the fourth quarter of 2023 declined 1.4%. The decrease in organic sales reflects volume declines in security solutions, offset by growth in data centers and enterprise network infrastructure, and price inflation.
- UBS reported sales of $1.6 billion for the fourth quarter of 2023, a decrease of 1.8%. Organic sales for the fourth quarter of 2023 declined 1.9%. The decrease in organic sales reflects lower broadband sales, partially offset by price inflation and growth in utility and integrated supply.
Sales in 2023 were $22.4 billion, an increase of 4.5% from 2022, primarily reflecting price inflation. Organic sales for 2023 grew by 3.2% as the acquisition of Rahi Systems positively impacted reported sales by 2.1%, while fluctuations in foreign exchange rates and the number of workdays negatively impacted reported net sales by 0.4% and 0.4%, respectively.
Profits were $766.1 million for the year.
By segment:
- EES reported sales of $8.6 billion for 2023, a decrease of 2.4%. Organic sales declined 1.4%.
- CSS reported sales of $7.2 billion for 2023, an increase of 11.7%. Organic sales grew 5.4% as the acquisition of Rahi Systems positively impacted sales by 7.1%.
- UBS reported sales of $6.6 billion for 2023, an increase of 6.9%. Organic sales for 2023 grew 7.5%.
“Fourth-quarter results were below our expectations, capping off a year that was unique in my time as Wesco’s CEO. On a full-year basis, certain sectors including utility, data center, industrial, security and network infrastructure continued to grow, while others underperformed including broadband, specific-OEM and construction-related sectors. As a leading global provider of business-to-business supply chain solutions, Wesco navigated through this mixed economic environment while managing changing customer buying patterns as supply chains healed. I’m proud that our team delivered approximately 5% revenue growth in 2023 following two years of double-digit increases,” said John Engel, CEO.
