Arrow Electronics highlighted the challenges in the market as it reported steady sales numbers but lower profits in the third quarter.
Net income was $76.1m on sales of $4.3bn which were 7% up on the same quarter a year ago.
Component distribution sales increased by 5% to $2.99bn year-on-year.
“In our global components business, while sales were in line with expectations, operating performance was impacted by a slowdown in the more profitable business in North America and Europe and the increased contribution of business from Asia Pacific,” said Michael Long, president and chief operating officer.
“Overall, the market continues to be cautious, with the macroeconomic situation causing our customers and suppliers to carefully evaluate their business needs,” said Long.
According to company CEO William Mitchell, a virtual shutdown of the credit markets made the third quarter especially difficult.
"There is no doubt that market conditions will continue to be challenging, and in response to the rapidly changing environment, we will make the appropriate and necessary decisions and adjustments to our business model to ensure continuing and profitable success and long-term sustainability,” said Mitchell.