Anixter International Inc. Q1 2009 Earnings Call Transcript

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2009-04-28 13:18:15.0

Tags: Revenue, Robert W. Baird & Co., Call Transcript, Activity, Earnings, Anixter, Project Activity, Data Centers, Sales Strategy, Operational Accounting, Sales Force Management, Financial Services, Storage, Hardware, Data Management, Sales, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question from David Manthey - Robert W. Baird.

David Manthey – Robert W. Baird & Co.

Bob, when you talk about activity levels stabilizing, just clarification, are you talking about dollar levels or sort of average daily sales type numbers as opposed to year-to-year change?

Robert J. Eck

Yes, it is dollar sales levels and booking levels that we see.

David Manthey – Robert W. Baird & Co.

Okay. And, second, when you talk about low single-digit or mid single-digit quarter-to-quarter revenue increases, typically, this may be an obviously question. But, there you're talking about organic revenue trends, not including copper currency acquisitions, right?

Dennis J. Letham

That's correct, Dave.

David Manthey – Robert W. Baird & Co.

And then the last question. Could you tell us approximately, if you have an idea, what percentage of your business today you think is project related? I am sure that numbers come down here recently. And finally, could you talk about any trends you're seeing in data center or the Mac business year-to-date?

Dennis J. Letham

I guess the first part of that answer would be that the project business has declined. We've in the past used sort of an 80/20 rough approximation of day-to-day project versus day-to-day. The project activity is declining. We're probably seeing something more on the order of, instead of a 20% project volume something more in the order of a 10% to 15% project volume currently, potentially down a little bit lower than that.

I think the important thing, as we look at it is that the project boards that our sales pipelines show are full of activity around data centers. But the reality is that a lot of those projects are probably not funded today and so that's creating the downward pressure on project activity. So there's a lot of activity in the pipeline but there's not as much activity being funded. And that takes us down to the low end of that range, to a project volume that's 10% or potentially less than 10% of the number.

Operator

Your next question comes from Matt McCall - BB&T Capital Markets.

Matthew McCall – BB&T Capital Markets

So on the inventory, I think a couple different comments there talk about a focus on bringing inventory down. I heard commentary that the Electrical Wire & Cable business was in line in North America. OEM, you're trying to work down. Did I miss the enterprise commentary? What's the expectation for your inventory over there maybe broken down geographically?

 

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