WESCO International, Inc. Third Quarter 2005 Results Record Sales and Productivity

20 October 2005

WESCO International, Inc.
(NYSE: WCC), a leading provider of MRO products, construction materials,
electrical equipment and components, and advanced integrated supply
procurement outsourcing services, today announced its 2005 third quarter
financial results.
(Photo: http://www.newscom.com/cgi-bin/prnh/20030508/WCCLOGO )
Net sales for the third quarter 2005 grew to $1,131 million, an increase
of 16% over the $975 million recorded in 2004. Organic growth was 14.8% with
acquisition sales accounting for the remainder. Gross margin for the third
quarter 2005 was 18.4% compared to 18.7% for the third quarter 2004, and
operating income for the current quarter totaled $47.3 million compared with
$40.9 million in the same quarter last year. Depreciation and amortization
included in third quarter operating income totaled $3.7 million in 2005
compared to $4.4 million in 2004. Net income in the third quarter 2005
increased by 32% to $25.0 million compared with $19.0 million in 2004. Third
quarter financial results include a pre-tax charge of $9.0 million ($6.1
million after-tax) for litigation and settlement costs associated with the
resolution of a lawsuit. Diluted earnings per share including litigation
related charges were $0.51 per share compared to $0.43 per share in 2004.
Stephen A. Van Oss, Senior Vice President and Chief Financial and
Administrative Officer, stated, "Strong sales growth from good demand in our
end markets and excellent market development and customer service activities
combined to deliver record sales for the quarter. Reported operating income
of $47.3 million included the absorption of $9.0 million of litigation and
settlement expenses, and despite these costs, operating income was second only
to our best ever result of $48.9 million set last quarter. The earnings
momentum reflects the Company's ability to effectively manage operating and
administrative costs while also addressing rising product costs through the
supply chain."
Chairman and CEO, Roy W. Haley, commented, "Our positive earnings momentum
reflects great execution by our employees who are excelling at delivering
sales growth and better operating performance through a number of marketing,
productivity, and expense control programs across our business. We consider
sales and operating income per employee to be the most comprehensive measure
of operational productivity, and we have again set new record levels in these
important performance measures. As a result, we expect that organic growth
will continue at a double digit level in the fourth quarter. In addition, our
recent acquisitions will contribute to future increases in sales and earnings
as we integrate these organizations in our Company."
In September, the Company completed $300 million in new long-term, fixed
rate financing consisting of $150 million of 2.625% Convertible Senior
Debentures and $150 million of 7.5% Senior Subordinated Debt Securities. The
Company will redeem the remaining $200 million of its 9.125% Senior
Subordinated Debt Securities at the end of October 2005. Costs associated
with the redemption will result in a one-time, after-tax charge of $2.6
million in the fourth quarter.
Mr. Van Oss further commented, "On September 29th we acquired the Carlton-
Bates Company, a premier regional distributor of electrical and electronic
components with annualized sales of approximately $300 million. This
acquisition, combined with WESCO's leading position in the electrical
distribution market, provides a unique opportunity to accelerate WESCO's
growth in the original equipment manufacturer market. In July, we acquired
the assets of Fastec Industrial Corp., a national distributor of fasteners,
cabinet hardware, locking and latching devices, with annualized sales of
approximately $60 million. As previously reported, we expect these
acquisitions to be accretive to earnings in 2005 and 2006 by approximately
$0.10 and $0.45, respectively."
Also, as previously reported, during the quarter the Company agreed to
settle a pending lawsuit filed in the United States District Court Northern
District of California. Under the terms of the settlement, both parties would
release all claims against each other in exchange for cash and other
consideration. On October 14, 2005, the settlement was concluded. The
settlement plus related litigation expenses resulted in a $9.0 million pre-tax
($6.1 million after tax) against the third quarter 2005 results.
For the nine months year to date ended September 30, net sales were $3,184
million compared with $2,753 million in the prior year, an increase of 15.7%.
Gross margin during the same periods was 18.5 % and 19.1%, respectively.
Operating income totaled $135 million versus $110 million last year.
Depreciation and amortization included in operating income was $11.3 million
versus $14.1 million last year. Net income for the 2005 year-to-date period,
including a charge in the first quarter for redeeming a portion of the
Company's senior subordinated notes, was $63.8 million compared with $47.8
million last year, while diluted earnings per share were $1.30 per share in
2005 versus $1.10 per share in 2004.

Teleconference
WESCO will conduct a teleconference to discuss the third quarter earnings
as described in this News Release on October 20, 2005, 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 this 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 with 2004 annual product sales of
approximately $3.7 billion. With the addition of Fastec and Carlton-Bates,
the Company employs approximately 6,100 people, maintains relationships with
over 24,000 suppliers, and serves more than 100,000 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 390 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, 2004, 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 Ended Three Months Ended
September 30, 2005 September 30, 2004

Net sales $1,131.4 $974.5
Cost of sales 923.1 791.9
Gross profit 208.3 18.4% 182.6 18.7%
Selling, general &
admin. expenses 157.3 13.9% 137.2 14.1%
Depreciation &
amortization 3.7 4.4
Income from operations 47.3 4.2% 40.9 4.2%
Interest expense, net 6.4 10.3
Loss on debt
extinguishment - 0.5
Other expense 3.8 1.9
Income before
income taxes 37.1 3.3% 28.2 2.9%
Provision (benefit)
for income taxes 12.1 9.2
Net income $25.0 2.2% $19.0 2.0%

Diluted earnings
per common share:
Net income $0.51 $0.43
Weighted average
shares outstanding 49.4 44.2

Nine Months Ended Nine Months Ended
September 30, 2005 September 30, 2004

Net sales $3,184.4 $2,753.3
Cost of sales 2,596.3 2,226.2
Gross profit 588.1 18.5% 527.1 19.1%
Selling, general &
admin. expenses 442.0 13.9% 403.1 14.6%
Depreciation &
amortization 11.3 14.1
Income from operations 134.8 4.2% 110.0 4.0%
Interest expense, net 22.4 30.3
Loss on debt
extinguishment 10.1 2.1
Other expense 8.8 4.5
Income before income
taxes 93.5 2.9% 73.2 2.7%
Provision for income
taxes 29.7 25.4
Net income $63.8 2.0% $47.8 1.7%

Diluted earnings
per common share:
Net income $1.30 $1.10
Weighted average
shares outstanding 49.1 43.6

WESCO INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollar amounts in millions)
(Unaudited)

Sept. 30, June 30, December 31,
2005 2005 2004
Total debt $570.1 $269.2 $417.6
Plus: A/R Securitization 310.0 330.0 208.0
Less: Cash and cash
equivalents (60.9) (15.0) (34.5)
Total indebtedness
(including A/R
Securitization
Program), net of cash
(See Note) $819.2 $584.2 $591.1

Note: Total indebtedness (including A/R Securitization Program), net of
cash is provided by the Company as an additional measure of the Company's
leverage. Generally accepted accounting principles require that this
financing facility be presented off-balance sheet. As management internally
evaluates the A/R Securitization Facility as an additional form of
indebtedness, management believes it is helpful to provide the readers of its
financial statements an evaluation of its total indebtedness from all sources
of financing. Cash and cash equivalents are deducted from this total to
determine total indebtedness (including A/R Securitization Program), net of
cash. This amount represents the Company's net obligation due under all of
its financing facilities.

WESCO INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollar amounts in millions)
(Unaudited)

Nine Months Ended
Sept. 30, 2005
Cash flow provided by
operations $168.1
Less: Increase in A/R
Securitization (102.0)
Less: Capital expenditures (11.0)
Free cash flow
(excluding effects of
A/R Securitization Program)
(See Note) $55.1

Note: Free cash flow (excluding the effects of A/R Securitization
Program) is provided by the Company as an additional liquidity measure.
Generally accepted accounting principles require that changes in this facility
be reflected within operating cash flows in the Company's consolidated
statement of cash flows. As management internally evaluates the A/R
Securitization Facility as an additional form of liquidity, management
believes it is helpful to provide the readers of its financial statements with
the cash flow from operating activities other than those related to the A/R
Securitization Facility. Capital expenditures are deducted from this adjusted
operating cash flow amount to determine free cash flow (excluding effects of
A/R Securitization Program). This amount represents excess funds available to
management to service all of its financing needs (including needs of its A/R
Securitization Program) and other investing needs.