US-headquartered reseller CDW Corporation has reported a significant downturn in business for its UK operation as part of its third quarter results ending 30 September. The company trades in the US, Canada and the UK, with those last two countries seeing a combined fall in sales of over 8% for the quarter.
Net sales for CDW's UK and Canadian operations, combined as “Other” for financial reporting purposes, were $466m, 8.2% lower than the third quarter of 2019. Despite the poor performance internationally, CDW said it would still increase its quarterly dividend by 5.3% for shareholders, on the back of the overall group results.
“Our third quarter results demonstrated the balance and strength of our business model, and reinforced our confidence in, and commitment to, our strategy,” said Christine Leahy (pictured), chief executive officer of CDW.
Leahy confirmed the UK sales decrease was a “high single digit” slump. The company does not publicly break down the figures for its UK and Canada operations. She added: “The duration and varying potential implications of Covid-19 on our more than 250,000 customers remain uncertain and unknowable. However, we will remain laser-focused on meeting our customers’ needs, while being the partner of choice for more than 1,000 leading and emerging technology brands as the technology market continues to evolve.”
Total net sales in the third quarter were $4.756bn, compared to $4,908bn in the third quarter of 2019, a decrease of 3.1%. Total Corporate segment net sales were $1.66bn, 13.2% lower than the third quarter of 2019.
Total Small Business segment net sales were $337m, 12.7% lower than last time. And total Public segment net sales increased 9.2% to $2.294bn.
Gross group profit in the third quarter was $826m, compared to $817m in 2019, representing an increase of 1.1%. Gross profit margins were 17.4% versus 16.6% last year.
There was a 2% reduction in the company's 10,000-strong workforce during the quarter, with those restructuring costs affecting its bottom line. Operating income was $318m compared to $321m last year, and the net income was $193m against the $202m generated last time.
