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updated: 7/31/2014 12:17 PM

CDW sales rise 12 percent in second quarter

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  • Vernon Hills-based CDW Corp. said strong business in its education and health care segments drove its second quarter 2014 net sales up by almost 12 percent.

      Vernon Hills-based CDW Corp. said strong business in its education and health care segments drove its second quarter 2014 net sales up by almost 12 percent.
    Daily Herald file photo

 
Globe Newswire

Vernon Hills-based technology services provider CDW Corp. said net sales for the second quarter of 2014 rose almost 12 percent on strong sales in its education and health care segments.

Total net sales for the quarter were $3.106 billion, compared to $2.779 billion in the same period 2013.

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Average daily sales in the second quarter of 2014 were $48.5 million, compared to $43.4 million last year. There were 64 selling days in both the second quarters of 2014 and 2013.

"We outperformed the U.S. IT market once again in the second quarter," said CDW Chairman and CEO Thomas E. Richards. "Sales growth of nearly 12 percent was powered by continued exceptional performance in K-12 education and excellent results in both small business and health care,"

"Sales to the federal government returned to growth and both state and local and higher education delivered strong results," Richards added.

The company's public segment reported net sales of $1.27 billion, 17.5 percent higher than the second quarter of 2013. Public results were led by sales increases of more than 25 percent to education customers and high-teen growth in health care. Sales to government customers increased mid-single digits.

Net sales in CDW's corporate segment were $1.66 billion in the quarter, 7.7 percent higher than the second quarter of 2013.

Net sales for CDW's advanced services business and Canadian operations rose 11.9 percent to $178.2 million in the second quarter of 2014, compared to $159.3 million in the second quarter of 2013.

CDW also announced it plans to offer $600 million in senior notes that will come due in 2022. The company said it intends to use the proceeds, together with cash on hand, to fund redemption of $325 million in notes due in 2018 and $234.7 million in notes due in 2019, as well as related fees and expense.

CDW's board of directors declared a quarterly cash dividend of 4.25 cents per common share, to be paid on Sept. 10 to shareholders of record as of the close of business on Aug. 25.

"At our initial public offering last June we declared our commitment to deliver value to our shareholders, just as we've delivered value to our customers and partners across the U.S. and Canada for 30 years," said Ann E. Ziegler, CDW senior vice president & chief financial officer. "Today's announcement reinforces our commitment."

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