Avnet reports record sales in Q4

Sales surge 38.5 percent for electronics distributor; sales grew 18 percent for fiscal year

Electronics distributor Avnet today reported that sales surged 38.5 percent to a record $5.21 billion for the fourth quarter ended July 3.Adjusted operating income increased 154.6 percent, four times faster than revenue growth to $217.1 million, up 190 basis points year over year.

Sales for the full year ended July 3, 2010 increased 18.1% year over year to $19.16 billion and increased 17.5% year over year adjusted for the impact of changes in foreign currency exchange rates; pro forma revenue was up 15.5% year over year.

Roy Vallee, Chairman and Chief Executive Officer, commented, “The ‘V’shaped cyclical recovery in the technology markets we serve continued this quarter with strong top line performance across both groups and all regions, resulting in 38.5% year-over-year growth and record revenue. The combination of record revenue, gross profit margin expansion and productivity gains drove operating income margin up sequentially and year over year at both operating groups with the EMEA region delivering the most significant improvement. Our value-based management discipline, which connects margins with working capital velocity throughout our business, resulted in return on working capital (ROWC) and return on capital employed (ROCE) above our stated financial targets. We enter fiscal 2011 prepared to build on our performance in fiscal 2010 as we begin to integrate the three acquisitions completed in July that we expect will produce at least a 12.5% return on capital employed and create shareholder value.”

Avnet, Inc. (NYSE:AVT) is one of the largest distributors of electronic components, computer products and embedded technology serving customers in more than 70 countries worldwide