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CDW delivers strong Q3 despite currency issues

The Q3 numbers from CDW show a firm that is managing to develop its cloud and services approach

CDW has managed to deliver a decent set of numbers for the third quarter, despite the impact of currency rates caused by the tumbling value of the pound.

The channel player, which operates in the UK, US and Canada, saw its revenues climb in the three months ended 30 September by 5.9% to $3,708m.

Net sales from the UK came in at $197m for the quarter and for accounting purposes are combined with Canada, which together delivered a $66m improvement on the previous year.

Drilling down into the different sides of the business saw corporate sales almost flat at $1,769m, with the decline in medium and large customer business being offset by a growth in the sales coming from smaller businesses.

Sales into the public sector, which is something of a speciality for CDW, improved year-on-year by 10.6% to $1,641m, with education and healthcare improvements contributing to that rise.

US firms have been struggling to deal with the headwinds caused by the state of Sterling and CDW revealed that the impact to consolidated net sales growth was 60 basis points because of the translation of the Pound to the Dollar.

"We delivered solid topline growth with excellent profitability in today's challenging economic environment, once again highlighting the value of our balanced channels, broad solutions portfolio and investments in fast growing technologies, like cloud, security and services, which are leading growth across the company,” said Thomas Richards, chairman and CEO of CDW.

The firm is expecting to exceed the medium term targets it set of low double digit net income growth in the fourth quarter.

"In today's challenging marketplace, our balance -- across customers, products and technologies -- and focus on profitable growth will continue to serve us well," said Richards. "This quarter's results reinforce our confidence in our strategy and ability to continue to deliver sustainable, profitable growth and cash flows.”

CDW acquired Kelway last summer for $431m building on a minority stake the firm first took in the UK reseller towards the tail end of 2014.

 

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