- Earnings per diluted share of $1.12 increased 56%


     - Operating margins improved to 5.8%, up 130 basis points


     - Consolidated sales of $1.59 billion increased 19%


    Full year results compared to the prior year:


     - Earnings per diluted share of $3.96 increased 58%


     - Operating margins improved to 5.4%, up 120 basis points


     - Consolidated sales of $6.1 billion increased 21%

PITTSBURGH, Jan. 26, 2012 /PRNewswire/ -- WESCO International, Inc. (NYSE: WCC), a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services, today announced its 2011 fourth quarter and full-year financial results.

(Logo: http://photos.prnewswire.com/prnh/20030508/WCCLOGO )

The following results are for the quarter-ended December 31, 2011 compared to the quarter-ended December 31, 2010:


    --  Consolidated net sales were $1,589.5 million for the fourth quarter of
        2011, compared to $1,331.6 million for the fourth quarter of 2010, an
        increase of 19.4%. Acquisitions positively impacted consolidated sales
        by 6.2% while one less workday negatively impacted sales by 1.6%,
        resulting in a normalized organic growth rate of approximately 14.8%.
        There was no foreign exchange impact in the fourth quarter.
        Sequentially, fourth quarter 2011 sales increased 0.6%.

    --  Gross profit of $328.0 million, or 20.6% of sales, for the fourth
        quarter of 2011 was up 30 basis points, compared to $270.3 million, or
        20.3% of sales, for the fourth quarter of 2010.

    --  Selling, general & administrative (SG&A) expenses of $227.8 million, or
        14.3% of sales, for the fourth quarter of 2011 improved 100 basis
        points, compared to $204.1 million, or 15.3% of sales, for the fourth
        quarter of 2010.

    --  Operating profit was $91.5 million for the current quarter, up 52.4%
        from $60.0 million for the comparable 2010 quarter. Operating profit as
        a percentage of sales was 5.8% in 2011, up 130 basis points from 4.5% in
        2010.

    --  Total interest expense for the fourth quarter of 2011 was $12.0 million,
        compared to $15.9 million for the fourth quarter of 2010. During the
        fourth quarter of 2010, WESCO resolved an outstanding tax matter dating
        back to 1998, which resulted in increased interest expense of $4.2
        million. Non-cash interest expense, which includes convertible debt
        interest, interest related to uncertain tax positions, and the
        amortization of deferred financing fees, for the fourth quarter of 2011
        and 2010 was $1.6 million and $5.6 million, respectively.

    --  The effective tax rate for the current quarter was 31.1%, compared to
        21.1% for the prior year quarter. The resolution of the previously
        mentioned tax matter, net of other international tax items, decreased
        fourth quarter 2010 tax expense by $2.9 million.

    --  Net income of $54.8 million for the current quarter was up 57.5% from
        $34.8 million for the prior year quarter. The resolution of the
        previously mentioned tax matter, net of other international tax items,
        decreased fourth quarter 2010 net income by $1.3 million.

    --  Earnings per diluted share for the fourth quarter of 2011 were $1.12 per
        share, based on 49.0 million diluted shares, and was up 55.6% from $0.72
        per share in the fourth quarter of 2010, based on 48.3 million diluted
        shares. The resolution of the previously mentioned tax matter, net of
        other international tax items, negatively impacted fourth quarter 2010
        earnings per diluted share by $0.03.

    --  Free cash flow for the fourth quarter of 2011 was $86.4 million,
        compared to $46.8 million for the fourth quarter of 2010.

Mr. John J. Engel, WESCO's Chairman and Chief Executive Officer, stated, "Our fourth quarter results were strong and close out an excellent year. We have now posted six consecutive quarters of double-digit organic sales growth and five consecutive quarters of EPS growth of at least 40% versus prior year. On a full year basis, operating margins were 5.4%, up 120 basis points versus prior year, and were driven by a balanced contribution of gross margin expansion and operating cost leverage. In addition, we announced that we completed the acquisition of RS Electronics earlier this month, marking our fifth acquisition in the last 18 months. These acquisitions total over $460 million in annual revenues and have expanded our portfolio of value creation solutions and strengthened our business. Our investments are paying off, effective execution of our growth strategy continues, and we are very pleased with the positive momentum and improved profitability of our business in 2011."

The following results are for the full-year period ended December 31, 2011 compared to the full-year period ended December 31, 2010:


    --  Consolidated net sales were $6,125.7 million, compared to $5,063.9
        million, an increase of 21.0%. Acquisitions and foreign exchange
        positively impacted consolidated sales by 6.8% and 0.8%, respectively,
        while one less workday negatively impacted sales by 0.4%, resulting in a
        normalized organic sales growth of approximately 13.8%.

    --  Gross profit of $1,236.6 million, or 20.2% of sales, was up 50 basis
        points, compared to $998.5 million, or 19.7% of sales.

    --  SG&A expenses of $872.0 million, or 14.2% of sales, improved 90 basis
        points, compared to $763.6 million, or 15.1% of sales.

    --  Operating profit was $333.0 million, up 57.9% from $211.0 million for
        the comparable 2010 period. Operating profit as a percentage of sales
        was 5.4% in 2011, up 120 basis points from 4.2% in 2010.

    --  Total interest expense was $53.6 million, compared to $57.6 million.
        Non-cash interest expense, which includes convertible debt interest,
        interest related to uncertain tax positions, and the amortization of
        deferred financing fees, for 2011 and 2010 was $8.8 million and $11.8
        million, respectively.

    --  The effective full-year tax rate was 29.8% for 2011 compared to 26.7%
        for 2010. After adjusting for the net benefit of the previously
        mentioned tax matter, the full year 2010 effective tax rate would have
        been 27.9%.

    --  Net income of $196.3 million for the full-year was up 69.9% from $115.5
        million for the prior year.

    --  Earnings per diluted share for 2011 were up 58.4% to $3.96 per share,
        based on 49.6 million diluted shares, versus $2.50 per share for 2010,
        based on 46.1 million diluted shares. The resolution of the previously
        mentioned tax matter, net of other international tax items, negatively
        impacted 2010 earnings per diluted share by $0.03.

    --  Full-year free cash flow was $134.2 million, compared to $112.2 million
        in the prior year.

Mr. Engel continued, "We are focused on building on the positive momentum across WESCO as we continue to execute our growth strategy in 2012. The strength, diversity, and operating leverage of our business position us well in our global markets. I am very proud of the extra effort and results delivered by all WESCO associates in 2011, and I am confident in our team's ability to produce excellent results again in 2012."

Teleconference Access

WESCO will conduct a teleconference to discuss the fourth quarter earnings as described in this News Release on Thursday, January 26, 2012, at 11:00 a.m. EST. The conference call will be broadcast live over the Internet and can be accessed from the Company's website at http://www.wesco.com. The conference call will be archived on this Internet site for seven days.

WESCO International, Inc. (NYSE: WCC), a publicly traded Fortune 500 holding company headquartered in Pittsburgh, Pennsylvania, is a leading provider of electrical, industrial, and communications maintenance, repair and operating ("MRO") and original equipment manufacturers ("OEM") product, construction materials, and advanced supply chain management and logistic services. 2011 annual sales were approximately $6.1 billion. The Company employs approximately 7,300 people, maintains relationships with over 18,000 suppliers, and serves over 100,000 customers worldwide. Customers include commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers and utilities. WESCO operates seven fully automated distribution centers and approximately 400 full-service branches in North America and international markets, providing a local presence for customers and a global network to serve multi-location businesses and multi-national corporations.

The matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. Certain of these risks are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as well as the Company's other reports filed with the Securities and Exchange Commission.




                                       WESCO INTERNATIONAL, INC.

                              CONDENSED CONSOLIDATED STATEMENT OF INCOME
                        (dollar amounts in millions, except per share amounts)
                                              (Unaudited)

                                               Three Months                         Three Months
                                                  Ended                                Ended
                                                                                      December
                                              December  31,                                      31,
                                                       2011                               2010

    Net
     sales                                      $1,589.5                             $1,331.6
    Cost of
     goods
     sold
     (excluding                                  1,261.5      79.4%               1,061.3       79.7%
         depreciation
         and
         amortization
         below)
     Selling,
     general
     and
     administrative
     expenses                                   227.8    14.3%          204.1  15.3%
     Depreciation
     and
     amortization                                    8.7                                  6.2
                                                     ---                             ---
        Income
         from
         operations                                 91.5       5.8%                  60.0        4.5%
     Interest
     expense,
     net                                            12.0                                 15.9
                                                    ----                            ----
        Income
         before
         income
         taxes                                      79.5       5.0%                  44.1        3.3%
     Provision
     for
     income
     taxes                                          24.7                                  9.3
                                                    ----
        Net
         income
         attributable
         to
         WESCO
         International,
         Inc.                                   $54.8     3.4%          $34.8   2.6%
                                                   =====                            =====

     Earnings
     per
     diluted
     common
     share                                      $1.12                 $0.72
     Weighted
     average
     common
     shares
     outstanding
     and
     common
     share
     equivalents
     used
     in
     computing
     earnings
     per
     diluted
     share
     (in
     millions)                                   49.0                  48.3




                                      WESCO INTERNATIONAL, INC.

                              CONDENSED CONSOLIDATED STATEMENT OF INCOME
                        (dollar amounts in millions, except per share amounts)
                                             (Unaudited)
                                                   Twelve                           Twelve
                                                   Months                              Months
                                                   Ended                            Ended
                                                December 31,                     December 31,
                                                        2011                            2010

    Net sales                                    $6,125.7                       $5,063.9
    Cost of
     goods sold
     (excluding                                   4,889.1       79.8%             4,065.4     80.3%
         depreciation
         and
         amortization
         below)
    Selling,
     general
     and
     administrative
     expenses                                    872.0     14.2%          763.6  15.1%
     Depreciation
     and
     amortization                                    31.6                              23.9
                                                     ----                           ----
        Income from
         operations                                 333.0        5.4%               211.0      4.2%
    Interest
     expense,
     net                                             53.6                              57.6
    Other
     income                                             -                              (4.3)
                                                      ---                           ----
        Income
         before
         income
         taxes                                      279.4        4.6%               157.7      3.1%
    Provision
     for income
     taxes                                           83.1                              42.2
        Net income
         attributable
         to WESCO
         International,
         Inc.                                   $196.3      3.2%         $115.5   2.3%
                                                   ======                          ======

    Earnings
     per
     diluted
     common
     share                                       $3.96               $2.50
    Weighted
     average
     common
     shares
     outstanding
     and common
     share
     equivalents
     used in
     computing
     earnings
     per
     diluted
     share (in
     millions)                                    49.6                46.1




                                        WESCO INTERNATIONAL, INC.

                                   CONDENSED CONSOLIDATED BALANCE SHEET
                                       (dollar amounts in millions)
                                               (Unaudited)

                                                               December 31,  December 31,
                                                                        2011         2010
                           Assets
    Current Assets
    Cash and cash equivalents                                       $63.9        $53.6
    Trade accounts receivable, net                                  939.4        792.7
    Inventories, net                                                627.0        588.8
    Other current assets                                            107.2         78.6
                                                                    -----         ----
        Total current assets                                      1,737.5      1,513.7
    Other assets                                                  1,341.0      1,313.1
                                                                  -------      -------
        Total assets                                             $3,078.5     $2,826.8
                                                                 ========     ========


                      Liabilities and Stockholders'
                                  Equity
    Current Liabilities
    Accounts payable                                               $642.8       $537.5
    Current debt                                                      6.4          4.0
    Other current liabilities                                       196.7        166.7
                                                                    -----        -----
        Total current liabilities                                   845.9        708.2

    Long-term debt                                                  642.9        725.9
    Other noncurrent liabilities                                    243.8        244.1
                                                                    -----        -----
        Total liabilities                                         1,732.6      1,678.2

    Stockholders' Equity
        Total stockholders' equity                                1,345.9      1,148.6
                                                                  -------      -------
        Total liabilities and stockholders'
         equity                                                  $3,078.5     $2,826.8
                                                                 ========     ========




                                       WESCO INTERNATIONAL, INC.

                             CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                      (dollar amounts in millions)
                                              (Unaudited)

                                                         Twelve Months        Twelve Months
                                                             Ended                Ended
                                                       December 31, 2011    December 31, 2010
    Operating Activities:
      Net income                                               $196.2              $115.5
        Add back (deduct):
        Depreciation and
         amortization                                            31.6                23.9
        Deferred income taxes                                    14.4                21.0
        Change in Trade and
         other receivables,
         net                                                   (143.5)             (118.5)
        Change in Inventories,
         net                                                    (33.8)              (34.0)
        Change in Accounts
         Payable                                                101.7                53.9
        Other                                                     0.9                65.5
                                                                  ---                ----
            Net cash provided by
             operating activities                               167.5               127.3

    Investing Activities:
        Capital expenditures                                    (33.3)              (15.1)
        Acquisition payments                                    (48.1)             (265.4)
        Proceeds from sale of
         subsidiary                                                 -                40.0
        Repayment of note
         receivable                                                 -                15.0
        Other                                                     0.1                 5.0
                                                                  ---                 ---
            Net cash used by
             investing activities                               (81.3)             (220.5)

    Financing Activities:
        Debt borrowing
         (repayments), net                                      (84.1)               33.5
        Equity activity, net                                     (2.0)                4.3
        Other                                                    15.2                (7.2)
                                                                 ----                ----
            Net cash provided
             (used) by financing
             activities                                         (70.9)               30.6

    Effect of exchange
     rate changes on cash
     and cash equivalents                                        (5.0)                3.9
                                                                 ----                 ---

    Net change in cash and
     cash equivalents                                            10.3               (58.7)
    Cash and cash
     equivalents at the
     beginning of the
     period                                                      53.6               112.3
    Cash and cash
     equivalents at the
     end of the period                                          $63.9               $53.6
                                                                =====               =====

NON-GAAP FINANCIAL MEASURES

This earnings release includes certain non-GAAP financial measures. These financial measures include financial leverage, free cash flow, gross profit and organic sales growth. The Company believes that these non-GAAP measures are useful to investors in order to provide a better understanding of the Company's capital structure position, liquidity, and organic growth trends on a comparable basis. Additionally, certain non-GAAP measures either focus on or exclude transactions of an unusual nature, allowing investors to more easily compare the Company's financial performance from period to period. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.



                                         WESCO INTERNATIONAL, INC.

                               RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                       (dollar amounts in thousands)
                                                (Unaudited)

                                                             Twelve Months      Twelve Months
                                                                 Ended              Ended
                                                             December 31,       December 31,
                                                                       2011              2010
    Financial Leverage:
        Income from operations                                  $332,979          $210,919
        Depreciation and
         amortization                                             31,607            23,935
                                                                  ------            ------
            EBITDA                                              $364,586          $234,854
                                                                ========          ========

                                                            December 31,     December 31,
                                                                       2011              2010
    Current debt                                                  $6,411            $3,988
    Long-term debt                                               642,922           725,893
    Debt discount related to
     convertible debentures (1)                                  175,908           178,427
        Total debt including debt
         discount                                               $825,241          $908,308
                                                                ========          ========

    Financial leverage ratio                                         2.3                  3.9

Note: Financial leverage is provided by the Company as an indicator of capital structure position. Financial leverage is calculated by dividing total debt, including debt discount, by the trailing twelve months earnings before interest, taxes, depreciation and amortization (EBITDA).




                                                    Twelve          Twelve
                    Three Months    Three Months          Months          Months
                       Ended        Ended           Ended           Ended
                    December 31, December 31,    December 31,    December 31,
    Free Cash
     Flow:                  2011        2010           2011           2010
    (dollar
     amounts
     in
     millions)
      Cash flow
       provided
       by
       operations       $95.7       $51.8         $167.5         $127.3
      Less:
       Capital
       expenditures      (9.3)       (5.0)         (33.3)         (15.1)
                         ----                      -----          -----
        Free Cash
         flow           $86.4       $46.8         $134.2         $112.2
                        =====       =====         ======         ======

Note: Free cash flow is provided by the Company as an additional liquidity measure. Capital expenditures are deducted from operating flow to determine free cash flow. Free cash flow is available to provide a source of funds for any of the Company's financing needs.

(1)The convertible debentures are presented in the consolidated balance sheets in long-term debt net of the unamortized discount.




                                        WESCO INTERNATIONAL, INC.

                              RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                      (dollar amounts in thousands)
                                               (Unaudited)

                                                               Three Months      Three Months
                                                                   Ended             Ended
    Quarterly Gross Profit:                                    December 31,      December 31,
                                                                       2011            2010
        Net Sales                                               $1,589.5        $1,331.6
        Cost of goods sold (excluding
         depreciation and amortization)                          1,261.5         1,061.3
                                                                 -------
            Gross profit                                          $328.0          $270.3
                                                                  ======          ======
            Gross margin                                            20.6%           20.3%

                                                             Twelve Months  Twelve Months
                                                                 Ended          Ended
    Annual Gross Profit:                                     December 31,   December 31,
                                                                       2011            2010
        Net Sales                                               $6,125.7        $5,063.9
        Cost of goods sold (excluding
         depreciation and amortization)                          4,889.1         4,065.4
                                                                 -------         -------
            Gross profit                                        $1,236.6          $998.5
                                                                ========          ======
            Gross margin                                            20.2%           19.7%

Note: Gross profit is provided by the Company as an additional financial measure. Gross profit is calculated by deducting cost of goods sold, excluding depreciation and amortization, from net sales. This amount represents a commonly used financial measure within the distribution industry. Gross margin is calculated by dividing gross profit by net sales.





                                            Three Months Twelve Months
                                               Ended         Ended
    Normalized Organic Sales Growth:        December 31,  December 31,
                                                    2011        2011
        Change in net sales                     19.4%       21.0%
        Impact from acquisitions                 6.2%        6.8%
        Impact from foreign exchange rates         -  %      0.8%
        Impact from number of workdays         (1.6)%      (0.4)%
                                               -----       -----
            Normalized organic sales growth     14.8%       13.8%
                                                ====        ====

Note: Organic sales growth is provided by the Company as an additional financial measure to provide a better understanding of the Company's sales growth trends. Organic sales growth is calculated by deducting the percentage impact on net sales from acquisitions and foreign exchange rates from the overall percentage change in consolidated net sales.

SOURCE WESCO International, Inc.