Arrow reports strongest first-quarter results in company’s history; Avnet reports 40% growth for fourth straight quarter
The electronics sector continues to perform well despite lingering concerns about the potential impact on the industry from the Japan earthquake and tsunami in March. Two of the industry’s leading distributors reported strong sales and earnings this week, noting continued demand for electronics and computer products worldwide.
Arrow Electronics reported first-quarter profit of $136.3 million on sales of $5.22 billion. The distributor’s global sales of electronic components hit $3.89 billion, a 24% increase over the previous year, while its enterprise computing solutions sales reached $1.34 billion, a 21% increase over the prior year.
"Our growth strategy and the related momentum we built throughout the second half of 2009 and 2010 have carried over into the first quarter of 2011, with the Arrow team generating the strongest first-quarter results in our history. Revenue and earnings per share came in well ahead of our expectations, driven by strength in both of our business segments," said Michael J. Long, president and CEO.
At Avnet, sales rose 40% in the fiscal third quarter ended April 2, marking the company’s fourth consecutive quarter of 40% year-over-year growth.
Avnet Electronics Marketing, its electronic components business, saw record revenue of $3.93 billion, a 36% increase year-over-year and a 10% sequential increase. The company said demand for electronic components remained strong during the quarter in all of its main regions, noting that growth was strongest in Europe, the Middle East and Africa.
Sales for Avnet Technology Solutions, its computer-related business, rose 47% year-over-year.
Looking ahead, Avnet noted the potential impact of the Japan earthquake and tsunami in the June quarter, citing a wider than normal sales and earnings range. Overall company sales are estimated at between $6.6 billion and $7.3 billion, with earnings per share of between $1.10 and $1.22.
“While it is difficult to gauge the impact of the Japan earthquake and tsunami on our June quarter revenue, we continue to work closely with our suppliers to understand what products are most impacted and meet the needs of our supply chain customers,” the company said in a statement announcing the results.