Sonepar Prepares, Rexel Falls and CDR Stocks Up
Some industry tidbits ….
Sonepar, according to a banking announcement, recently was the beneficiary of a euro private placement. Societe Generale and AXA were able to get “some” of their clients to invest / loan money to Sonepar. No word on what the usage of funds will be … operational expenses or planning for more acquisitions (somewhere in the world).
- Joe Salimando, a frequent contributor to TED (NAED’s publication) and a periodic presenter at NAED meetings recently did some digging on Rexel. He presented his findings on his blog. The essence of his findings:
- U.S. sales up 3.3% in Q2. Keep in mind, this are U.S. sales translated to Euros. Q2/11 was 686.1 million euros, Q2/12 was 713.5M euros.
BUT WAIT: Let’s go to www.oanda.com, and get historical currency rates.
- The June 29, 2012 rate: 1 euro = $1.262. On 6/30/11, the rate was 1 euro = $1.439.
SO LET’S DO THE MATH:
- U.S. sales in Q2 of 2011 = 686.1 x 1.439 = $987 million
- U.S. sales in Q2 of 2012 = 713.5 x 1.262 = $900 million
THUS: Rexel’s U.S. sales, as expressed in dollars, can be estimated to have fallen $87 mllion year-over-year, or 9.67%
- FIRST HALF: Sales up from 1.287 billion euros in the U.S. one year ago to 1.384 billion this year. Going through the same exercise as above:
- 2012′s first half in the U.S., sales = $1.747 billion
- First half 2011 = $1.852 billion
- Sales over the first half DECLINED, then, by $105 million, or 5.7%
So we can say this:
- U.S. sales declined faster in Q2/12 than in Q1/12.
- Sales in the U.S. were UP in euros — which is how Rexel SA keeps score (and how it pays out its dividends) — but down in dollars.
- Other facts about Rexel’s U.S. operations from the release:
- At 6/30/12, the company had 286 branches operating in the U.S., compared with 306 at 6/30/11. That’s a 7% decline in branches.”
REXEL SALES UPDATE: We were advised today, August 14th, by Joe that his math was incorrect. His apology can be found here. The essence:
Q2, U.S. – up 3.5% overall, + 3.3% “on a constant basis and same (number of sales) days.”
First half, U.S. up 7.5% overall, + 4.1% “on a constant basis and same days”
And here’s info he wrote on Graybar (electrical up 3.5% in Q2, 6.1% through June), hence a softer Q2 than Q1.Thanks for the research Joe.
And many may know that John Krenicki, chief executive of GE Energy, is joining the private-equity firm Clayton, Dubilier & Rice LLC after a decision by GE, recommended by Mr Krenicki, to restructure GE Energy. It’s interesting to note that CDR has an affinity for the electrical industry. It was an owner of WESCO and currently has investments in Rexel, HD Supply and Atkore (parent of Allied Tube & Conduit and more).
How did you see your Q2 vs. Q1 or are Rexel and Graybar underperforming?