UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934

WESCO International, Inc.

(Exact name of registrant as specified in its charter)

Commission file number 001-14989

Delaware		25-1723345
(State or other jurisdiction of		(IRS Employer Identification No.)
incorporation or organization)
225 West Station Square Drive
Suite 700
Pittsburgh, Pennsylvania 15219		(412) 454-2200
(Address of principal executive offices)		(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition.

     The information in this Current Report is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

     On July 19, 2007, WESCO issued a press release announcing its earnings for the second quarter of 2007. A copy of the press release is attached hereto.

Item 9.01 Financial Statements and Exhibits

     (d) Exhibits

          99.1 Press Release dated July 19, 2007.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		July 19, 2007		WESCO International, Inc.
		(Date)
				/s/ Stephen A. Van Oss   Stephen A. Van Oss Senior Vice President, Chief Financial and       Administrative Officer

Exhibit 99.1

		News Release
		WESCO International, Inc. / Suite 700, 225 West Station Square Drive / Pittsburgh, PA 15219

WESCO International, Inc. Reports Record Sales and Earnings Per
Share for the Second Quarter Ended June 2007

Sales increased 13.6%; earnings per share increased 11.4%; 2.2 million shares repurchased,
Cascade Controls Corporation acquired.

Contact: Stephen A. Van Oss, Senior Vice President and
Chief Financial and Administrative Officer
WESCO International, Inc. (412) 454-2271, Fax: (412) 454-2477
http://www.wesco.com

PITTSBURGH, July 19 /PRNewswire-FirstCall/ — WESCO International, Inc. (NYSE: WCC), a leading provider of electrical MRO products, construction materials and advanced integrated supply procurement outsourcing services, announced today its second quarter 2007 financial results.

Consolidated net sales for the second quarter of 2007 were $1,518 million compared to $1,336 million in 2006, an increase of 13.6%. Sales from the acquisition completed in the third quarter of 2006 were approximately $181 million. Core sales, excluding the acquisition results, matched last year’s second quarter. Gross margin for the current quarter and the 2006 comparable quarter was 20.3%. Operating income for the current quarter totaled $99.6 million versus $94.7 million in last year’s second quarter. Depreciation and amortization included in operating income was $9.2 million for 2007 compared to $6.3 million in 2006. Net income for this quarter was $57.1 million versus $55.2 million in the comparable 2006 quarter. Diluted earnings per share for the quarter were $1.17 per share versus $1.05 per share in 2006.

Mr. Stephen A. Van Oss, Senior Vice President and Chief Financial and Administrative Officer stated, “We achieved record sales and earnings per share in the second quarter and generated significant free cash flow. Our strong cash generation and liquidity facilitated the continuation of long-term shareholder value improvements through our acquisition and share repurchase programs. At the end of June, we closed on the acquisition of Cascade Controls Corporation. Cascade has annual sales of $11 million and is a well established automation and controls distributor in the Northwest region of the U.S. Cascade provides WESCO with additional capabilities to serve our growing customer base of original equipment manufacturers. During the quarter, we repurchased approximately 2.2 million shares of WESCO stock. Shares repurchased since the announcement of the program in February 2007 total 5.2 million shares and represent an expenditure of $335 million under our $400 million authorization.”

Mr. Van Oss continued, “End market activity was slower than expected during the quarter resulting in core sales being essentially equal to last year’s second quarter. The shortfall in core sales growth resulted primarily from an unanticipated decline in utility expenditures for distribution materials and, as experienced in the first quarter of 2007, lower commercial construction activity. We are investing in multiple programs to increase organic top line revenues and achieve our long-term target of 8% operating profit margin. Our business model is sound and we believe market conditions will be favorable in the second half of 2007.”

Consolidated net sales for the six months ended June 30, 2007 were $2,969 million versus $2,602 million in last year’s comparable period, a 14.1% increase. Sales during the first six months from last year’s acquisition totaled $341 million. Gross margin in the current six-month period was 20.5% versus 20.1% last year and operating income totaled $182.1 million versus $171.7 million last year. Depreciation and amortization included in operating income was $18.1 million versus $12.6 million last year. Net income for the 2007 year-to-date period was $105.2 million versus $99.6 million last year. Diluted earnings per share were $2.09 per share in 2007 versus $1.91 per share in 2006.

Mr. Roy W. Haley, Chairman and Chief Executive Officer, commented, “Despite some shortfall in achieving our growth targets, customer relationships are strong and business development activity is at an all time high. We have experienced significant price pressure in some product categories and markets, but we are not inclined to relax pricing discipline and trade-off profitability for volume. Instead, we are adding emphasis to our marketing and service capabilities and organizational development and training activities. I am confident in our long-term opportunities for above average organic growth.”

# # #

Teleconference

WESCO will conduct a teleconference to discuss the second quarter earnings as described in this News Release on Thursday, July 19, 2007, at 11:00 a.m. E.D.T. The conference call will be broadcast live over the Internet and can be accessed from the Company’s home page at http://www.wesco.com. The conference call will be archived on our Internet site for seven days.

# # #

WESCO International, Inc. (NYSE: WCC) is a publicly traded Fortune 500 holding company, headquartered in Pittsburgh, Pennsylvania, whose primary operating entity is WESCO Distribution, Inc. WESCO Distribution is a leading distributor of electrical construction products and electrical and industrial maintenance, repair and operating (MRO) supplies, and is the nation’s largest provider of integrated supply services. 2006 annual sales were approximately $5.3 billion. The Company employs approximately 7,000 people, maintains relationships with over 29,000 suppliers, and serves more than 110,000 customers worldwide. Major markets include commercial and industrial firms, contractors, government agencies, educational institutions, telecommunications businesses and utilities. WESCO operates seven fully automated distribution centers and approximately 400 full-service branches in North America and selected international markets, providing a local presence for area 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, 2006, as well as the Company’s other reports filed with the Securities and Exchange Commission.

WESCO INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollar amounts in millions, except per share amounts)

(Unaudited)

		Three Months								Three Months
		Ended								Ended
		June 30, 2007								June 30, 2006
Net sales		$	1,518.1							$	1,336.0
Cost of goods sold (excluding depreciation and amortization below)			1,210.0								1,065.4
Gross profit			308.1				20.3	%			270.6				20.3	%
Selling, general and administrative expenses			199.3				13.1	%			169.6				12.7	%
Depreciation and amortization			9.2								6.3
Income from operations			99.6				6.6	%			94.7				7.1	%
Interest expense, net			16.8								5.6
Other expenses			—								6.2
Income before income taxes			82.8				5.5	%			82.9				6.2	%
Provision for income taxes			25.7								27.7
Net income			57.1				3.8	%			55.2				4.1	%
Diluted earnings per common share		$	1.17							$	1.05
Weighted average shares outstanding (in millions)			48.7								52.7

		Six Months								Six Months
		Ended								Ended
		June 30, 2007								June 30, 2006
Net sales		$	2,968.7							$	2,601.5
Cost of goods sold (excluding depreciation and amortization below)			2,361.6								2,077.8
Gross profit			607.1				20.5	%			523.7				20.1	%
Selling, general and administrative expenses			406.9				13.7	%			339.4				13.1	%
Depreciation and amortization			18.1								12.6
Income from operations			182.1				6.1	%			171.7				6.6	%
Interest expense, net			29.0								12.0
Other expenses			—								11.4
Income before income taxes			153.1				5.2	%			148.3				5.7	%
Provision for income taxes			47.9								48.7
Net income			105.2				3.5	%			99.6				3.8	%
Diluted earnings per common share		$	2.09							$	1.91
Weighted average shares outstanding (in millions)			50.4								52.1

Note: As previously reported on March 1, 2007, in WESCO’s Annual Report on Form 10-K, WESCO amended and restated its accounts receivable securitization facility as of December 29, 2006. Prior to the amendment and restatement, interest expense and other costs related to the Receivables Facility were recorded as other expense in the consolidated statement of income. As of June 30, 2007, costs associated with the Receivables Facility totaled $13.1 million and are included within interest expense in the consolidated statement of income.

WESCO INTERNATIONAL, INC.

(dollar amounts in millions)

(Unaudited)

		June 30,				December 31,
		2007				2006
Assets
Current Assets
Cash and cash equivalents		$	65.0			$	73.4
Trade accounts receivable (See Note)			892.2				830.0
Inventories, net			634.8				613.6
Other current assets			78.4				101.1
Total current assets			1,670.4				1,618.1
Other assets			1,170.4				1,205.9
Total assets		$	2,840.8			$	2,824.0
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable		$	664.6			$	590.3
Other current liabilities			629.5				563.4
Total current liabilities			1,294.1				1,153.7
Long-term debt (See Note)			838.4				743.9
Other noncurrent liabilities			151.8				163.2
Total liabilities			2,284.3				2,060.8
Stockholders’ Equity
Total stockholders’ equity			556.5				763.2
Total liabilities and stockholders’ equity		$	2,840.8			$	2,824.0

Note: As previously noted, WESCO amended and restated its accounts receivable securitization facility as of December 29, 2006. Historically, accounts receivable sold under the facility were removed from the consolidated balance sheet and accounted for as an off-balance sheet arrangement. Effective with the amendment, sales of accounts receivable pursuant to the facility no longer qualify for “sale treatment” under GAAP. Therefore, the consolidated balance sheets as of June 30, 2007 and December 31, 2006 reflect $491.0 million and $390.5 million of additional accounts receivable and related borrowings.