WESCO International announced its 2015 fourth quarter results. Net sales were $1,861.5 million.
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This compares to $1,995.5 million for the fourth quarter of 2014, a decrease of 6.7%. Normalized organic sales decreased 7.6%; foreign exchange rates negatively impacted sales by 3.7% and were partially offset by the positive impacts from acquisitions and number of workdays of 3.0% and 1.6%, respectively.
Gross profit was $363.5 million, or 19.5% of sales, for the fourth quarter of 2015, compared to $402.2 million, or 20.2% of sales, for the fourth quarter of 2014.
Selling, general & administrative (SG&A) expenses were $256.9 million, or 13.8% of sales, for the fourth quarter of 2015, compared to $260.9 million, or 13.1% of sales, for the fourth quarter of 2014.
Operating profit was $90.0 million for the current quarter, compared to $124.2 million for the fourth quarter of 2014. Operating profit as a percentage of sales was 4.8% and 6.2% in 2015 and 2014, respectively.
Interest expense for the fourth quarter of 2015 was $9.9 million, compared to $20.2 million for the fourth quarter of 2014.
Non-cash interest expense, which includes convertible debt interest, interest related to uncertain tax positions, the amortization of deferred financing fees and accrued interest, for the fourth quarter of 2015 and 2014 was income of $8.1 million and expense of $0.6 million, respectively.
The resolution of transfer pricing matters associated with previously filed tax positions resulted in non-cash interest income of $9.4 million for the fourth quarter of 2015.
The effective tax rate for the current quarter was 39.3% compared to 28.8% for the prior year fourth quarter.
The resolution of the tax matter described above resulted in incremental income tax expense of $11.7 million, which combined with the effect of the interest income associated with this matter, increased the effective tax rate in the fourth quarter of 2015 by 11.3 percentage points.
Net income attributable to WESCO International, Inc. of $48.4 million for the current quarter was down 35.0% from $74.5 million for the prior year quarter.
Earnings per diluted share for the fourth quarter of 2015 were $1.03 per share, based on 47.2 million diluted shares, compared to earnings per diluted share of $1.40 in the fourth quarter of 2014, based on 53.0 million diluted shares.
Free cash flow for the fourth quarter of 2015 was $101.6 million, or 209% of net income, compared to $106.9 million for the fourth quarter of 2014. ■