Wesco boasts strong free cash flow, announces $300 million share repurchase program

By Lisa Kerner

Charlotte, N.C., Dec. 17 – Wesco International, Inc.’s free cash flow over the past four years totaled about $1 billion, according to senior vice president and chief financial officer Kent Parks.

Parks made his comments during a conference call on Wednesday to discuss Wesco’s 2015 outlook.

The company’s priorities for use of free cash flow, ranked in order, are to support organic growth, fund acquisitions, reduce financial leverage and purchase shares under the new share repurchase program.

Wesco announced a $300 million share repurchase authorization in which it will buy back its common stock over the next three years. Methods of repurchase could include open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, according to Parks.

Guidance

Based on Wesco’s improving sales growth, the company reaffirmed its full-year outlook of about 5% sales growth and $5.25 to $5.35 earnings per diluted share, at the lower end of the range, according to president and chief executive officer John Engel.

For 2015, Wesco expects sales growth of 3% to 6% and EPS of $5.50 to $5.90 per diluted share.

Engel said the company’s acquisition pipeline “remains robust,” and there are “excellent ongoing opportunities” for Wesco to strengthen its electrical core and broaden its portfolio of products and services.

Wesco is a Pittsburgh-based provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services.

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