WESCO Reaffirms 2016 Outlook; Issues 2017 Guidance - Quick Facts

(RTTNews) - WESCO International, Inc. (WCC) reaffirmed its 2016 outlook of a 2% to 3% sales decline, $3.75 to $3.90 adjusted earnings per share, and free cash flow generation of at least 125% of adjusted net income. The company said its fourth-quarter results to date are in line with its expectations.

WESCO noted that its adjusted net income and adjusted earnings per share exclude the third quarter 2016 loss of $123.9 million and related income tax benefit of $41.2 million resulting from the redemption of the company's 6.0% Convertible Senior Debentures due 2029, which, based on a diluted share count of 48.7 million, equates to a loss per share of approximately $1.70.

For 2017, WESCO expects sales in the range of flat to up 4%, EPS of $3.60 to $4.00, and free cash flow generation of at least 90% of net income. The company expects modest improvement in its end markets in 2017.

John Engel, WESCO's CEO, said: "Our 2017 outlook includes improved execution of our growth initiatives and investing for the future, while maintaining our cost and cash management discipline. We believe we are well-positioned to benefit from the potential tax, regulatory, and budget changes associated with the new administration in the United States, but do not anticipate a significant impact on our business next year."