PITTSBURGH, Dec. 13, 2017 /PRNewswire/ -- WESCO
International, Inc. (NYSE: WCC) reaffirms its 2017 outlook,
announces a new share repurchase authorization to replace the
existing authorization expiring at the end of 2017, and provides
its 2018 outlook.
Mr. John J. Engel, WESCO's
Chairman, President and CEO, commented, "We are pleased with the
continued positive momentum in our business in the fourth quarter
and our return to sales growth this year. We reaffirm our
full year 2017 outlook of 3% to 4% sales growth, diluted EPS of
$3.75 to $3.95, and free cash flow generation of at least
90% of net income."
Mr. Engel continued, "We expect favorable conditions and
positive growth in our end markets to continue in 2018. Our
outlook includes above-market performance, execution of our
profitable growth initiatives, investments in our people and
processes, and maintaining our cost and cash management
discipline. As a result, we expect sales growth in the range
of 3% to 6%, EPS of $4.05 to
$4.55 per diluted share, and free
cash flow generation of at least 90% of net income in 2018.
In addition, we believe we are well-positioned to benefit from the
U.S. tax reform proposals now being considered by Congress;
however, this benefit has not been reflected in our outlook.
We remain focused on delivering above-market sales growth,
improving profitability, generating strong cash flow, and
increasing shareholder value. The free cash flow generation
capability of our business supports continued investment in our
differentiated, services-oriented business model and One WESCO
growth initiatives, including acquisitions, while providing us with
the ability to return capital to our shareholders. Our
efforts remain centered on providing excellent customer service and
delivering value to our customers' operations and supply chains by
providing comprehensive product and service solutions that meet
their capital project, MRO and OEM needs."
Dave Schulz, WESCO's Senior Vice
President and Chief Financial Officer, added, "The new share
repurchase authorization of up to $300
million over the next three years demonstrates confidence in
our long-term growth outlook and in our ability to continue to
generate strong and consistent free cash flow."
The Company may utilize various methods to effect repurchases of
its common stock under the repurchase program, which could include
open market repurchases, negotiated block transactions, accelerated
share repurchases or open market solicitations for shares, some of
which may be effected through Rule 10b5-1 plans. The amount and
timing of any repurchases will depend upon several factors,
including market and business conditions, and the share repurchase
program may be discontinued at any time.
WESCO will discuss its 2018 outlook during its investor
conference call today starting at 11:00 a.m.
ET. The Company has posted a presentation to accompany
today's call on its Investor Website
(http://wesco.investorroom.com).
The call will be available via the conference dial-in below, as
well as a live audio webcast that can be accessed by clicking on
the microphone icon on WESCO's Investor Relations home page at
www.wesco.investorroom.com.
To participate, please dial 1-877-443-5356 (Domestic),
1-855-669-9657 (Canada) or
1-412-902-6614 (International) a few minutes before the
11:00 a.m. ET start. Please
mention to the operator that you are dialing in for the WESCO
conference call. The live webcast of the investor call and
the related presentation materials will be available through the
"Investor Relations" section of WESCO's Investor Website
(http://wesco.investorroom.com).
Investors can access a replay of the conference call from
2:00 p.m. ET on December 13, 2017 to December 19, 2017 by dialing
1-877-344-7529 (Domestic), 1-855-669-9658 (Canada), or
1-412-317-0088 (International) and using the Replay
Access Code 10114443.
About WESCO
WESCO International, Inc.
(NYSE: WCC), a publicly traded Fortune 500 holding company
headquartered in Pittsburgh,
Pennsylvania, is a leading provider of electrical,
industrial, and communications maintenance, repair and operating
(MRO) and original equipment manufacturers (OEM) products,
construction materials, and advanced supply chain management and
logistic services. 2016 annual sales were approximately
$7.3 billion. The company employs
approximately 9,000 people, maintains relationships with over
25,000 suppliers, and serves approximately 75,000 active customers
worldwide. Customers include commercial and industrial businesses,
contractors, government agencies, institutions, telecommunications
providers, and utilities. WESCO operates 10 fully automated
distribution centers and approximately 500 full-service branches in
North America and international
markets, providing a local presence for customers and a global
network to serve multi-location businesses and multi-national
corporations.
Forward-Looking Information
All statements
made herein that are not historical facts should be considered as
"forward-looking statements" within the meaning of the Private
Securities Litigation Act of 1995. Such statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially. Such risks,
uncertainties and other factors include, but are not limited to:
adverse economic conditions; disruptions in operations or
information technology systems; supply chain disruptions, changes
in supplier strategy or loss of key suppliers; product or other
cost fluctuations; expansion of business activities; personnel
turnover or labor cost increases; tax law changes or challenges to
tax matters; increase in competition; risks related to
acquisitions, including the integration of acquired businesses;
exchange rate fluctuations; legal or regulatory matters;
litigation, disputes, contingencies or claims; debt levels, terms,
financial market conditions or interest rate fluctuations; goodwill
or intangible asset impairment; stock market, economic or political
instability; and other factors described in detail in the Form 10-K
for WESCO International, Inc. for the year ended December 31, 2016 and any subsequent filings with
the Securities & Exchange Commission. The following
presentation includes a discussion of certain non-GAAP financial
measures. Information required by Regulation G with respect to such
non-GAAP financial measures can be found in the appendix and
obtained via WESCO's website, www.wesco.com.
Non-GAAP Financial Measures
This press
release includes free cash flow, which is a non-GAAP financial
measure of liquidity. Capital expenditures are deducted from
operating activities to determine free cash flow. Free cash flow is
available to fund other investing and financing activities.
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SOURCE WESCO International, Inc.