Arrow Electronics, like its main competitor Avnet, saw sales and profit fall sharply in Q1.
But unlike Avnet, Arrow does not yet see a bottom to the market downturn.
The reason being a lack or order visibility, the traditional bane of the distribution business.
"We cannot ignore the fact that economies around the world are still struggling with recessionary conditions, and this will continue to have an impact on our business," said Arrow CEO, William Mitchell.
"Our visibility remains extremely limited, and we are not prepared to call a bottom yet." said Mitchell.
Arrow's first quarter net income dipped by more than 60% to $26.7m compared with Q1 last year.
Total sales were down 15% at $3.42bn.
If you separate out component distribution sales these were $2.35bn, which was a sharper 20% fall year-on-year.
Looking ahead though, Arrow expects a firming of the market.
It believes that second quarter sales will be between $3.15 and $3.75bn. While components sales are predicted to be in the range $2.0 to $2.4bn.
"We cannot ignore the fact that economies around the world are still struggling with recessionary conditions, and this will continue to have an impact on our business," said Arrow CEO, William Mitchell.
"Our visibility remains extremely limited, and we are not prepared to call a bottom yet." said Mitchell.
Arrow's first quarter net income dipped by more than 60% to $26.7m compared with Q1 last year.
Total sales were down 15% at $3.42bn.
If you separate out component distribution sales these were $2.35bn, which was a sharper 20% fall year-on-year.
Looking ahead though, Arrow expects a firming of the market.
It believes that second quarter sales will be between $3.15 and $3.75bn. While components sales are predicted to be in the range $2.0 to $2.4bn.
But there are still some concerns about the macro economy in Europe.
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