WESCO International, Inc. reported a decline in net sales and profitability for the third quarter and first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $5,489.4 million, down 2.7% from $5,644.4 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $16,319.1 million, a decrease of 3.5% from $16,911.8 million in the prior year. The decline was attributed to a 2% drop in volume, particularly in the Electrical & Electronic Solutions (EES) and Utility & Broadband Solutions (UBS) segments, although the Communications & Security Solutions (CSS) segment saw a 10% increase in sales.
Income from operations for Q3 2024 was $335.6 million, down 11.8% from $380.5 million in Q3 2023. For the nine-month period, income from operations decreased to $922.1 million from $1,090.7 million, reflecting a 15.5% decline. Net income attributable to common stockholders for Q3 2024 was $189.9 million, compared to $219.0 million in Q3 2023, while for the nine months, it fell to $495.9 million from $580.5 million.
WESCO's total assets increased to $15,275.0 million as of September 30, 2024, from $15,060.9 million a year earlier. Cash and cash equivalents rose significantly to $706.8 million from $524.1 million. Long-term debt decreased to $5,007.8 million from $5,313.1 million, contributing to a reduction in total debt to $5,073.2 million from $5,364.6 million.
Strategically, WESCO completed the acquisition of Independent Electric Supply Inc. for $13.2 million and entroCIM for $36.5 million in 2024. Additionally, the company divested its WIS business for $334.2 million, resulting in a recognized gain of $19.3 million in Q3 2024. The divestiture contributed to a 2.3% decrease in net sales.
WESCO's selling, general, and administrative (SG&A) expenses increased to $831.1 million in Q3 2024, up from $796.4 million in the same quarter of 2023. The company also incurred restructuring costs of $9.5 million and digital transformation costs of $17.5 million during the nine-month period.
The effective tax rate for Q3 2024 was 25.3%, compared to 15.9% in Q3 2023, reflecting discrete income tax benefits in the prior year. Adjusted EBITDA for Q3 2024 was $398.1 million, down from $457.0 million in Q3 2023, indicating a challenging operating environment.
About WESCO INTERNATIONAL INC
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