The shares were the top performers on the New York Stock Exchange on Friday, rising 32.8% to US$8.70, after the group reported a 7.0% year-on-year increase in net sales to US$353.1mln in the final three months of 2017.
The company said the improvement was due to an increase in long-term contracts and a growth in ad-hoc sales.
The increase in contract sales primarily reflected new business revenue and higher hardware and chemical content, while ad-hoc sales growth was primarily due to improved service performance and growth at key customers.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) edged up to US$35mln from US$34.3mln in the corresponding period of 2016.
The company continues to target a low single-digit percentage increase in net sales year-on-year (yoy) in fiscal 2018, as well as a low double-digit percentage increase in adjusted EBITDA yoy.
“Results in the fiscal 2018 first quarter reflect improved sales and operating performance, consistent with the recovery in leading indicators that began in the fourth quarter of fiscal 2017. The increase in sales compared to the first quarter of last year was primarily due to new business and higher volumes on hardware and chemical contracts, and to a lesser extent, better ad-hoc sales performance,” said Todd Renehan, the chief executive officer of Wesco.
“The comprehensive business assessment that we initiated in the first quarter is progressing well. We’re very encouraged with the assessment’s findings, which reinforce our belief that significant opportunities exist to reduce costs and enhance margins. We are digging deeper into the next level of details to further validate our view of the scope, impact and timing of improvement plan initiatives, while at the same time initiating projects in several key areas. We plan to provide details of these broader initiatives and their expected financial impact in our fiscal 2018 second-quarter earnings announcement,” Renehan added.