Year-over year sales declines at Arrow Electronics' two divisions
showed signs of stabilisation during the third quarter but profits
fell steeply.
The US distributor closed off the period ended 2 October with
revenues of $3.67bn (£2.2bn), down 14% while profits plummeted 83%
to $12.6m (£7.6m). Net restructuring and integration charges were
$29.1m
Michael Long, Arrow CEO, said revenues and cash flow exceeded
expectations for the quarter, adding: "We continue to control well
those things that we can, no matter the economic environment."
The global components arm experienced a 15% dip in sales on Q3
2008 to $2.54bn, but this represented an 11% rise sequentially.
"Year-over-year sales declines have begun to moderate in both
North America and Europe, and Asia continues to post sales gains,"
said Long.
Turnover in the global enterprise computing solutions (ECS) fell
14% on a year ago period to $1.13bn, up from $1.12bn in Q2
2009.
The figures for ECS were above seasonal trends driven by a
year-end budget flush through in the US Government sector along
with quarter-on-quarter growth in storage and services.
"In our worldwide server business the year-over-year declines
have moderated," added Long.
By Paul Kunert,
Microscope