CDW boosts revenue, profit

CDW boosted fourth-quarter revenue and profits, with public-sector sales expansion outpacing the company’s overall growth rate.

The company’s public-sector sales for the quarter that ended Dec. 31, 2005, totaled $477.9 million, a 10 percent increase compared with the $434.6 million logged in the same quarter of 2004. Overall, CDW’s fourth-quarter revenue grew 6.6 percent to $1.6 billion, from $1.5 billion last year.

James Shanks, CDW’s executive vice president, said the company's areas of particular strength in recent months have been the health care market and state and local government sectors. The company transferred all of its health care accounts to its public-sector operation in 2005.

Shanks now has responsibility for managing corporate sales in addition to his public-sector sales role.

CDW’s fourth-quarter net income rose to $70.5 million, an increase of 12.5 percent compared with 2004 numbers.

Full-year sales for 2005 were $6.3 billion, a 9.7 increase from the $5.7 billion reported in 2004. Net income for 2005 came in at $272 million, a 12.7 percent increase compared with 2004's $241.4 million in 2004.


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