Avnet has seen sales revenues and profits fall in the third quarter, but CEO Roy Vallee feels the market is near the bottom of the downturn.
"There are still many questions on the macro economy, but the unprecedented speed with which the technology supply chain reacted to the global demand slowdown suggests that we are getting closer to the bottom of this cycle," said Vallee.
Sales of $3.7bn for the third quarter ended March 28, were 16.3% down on the previous quarter and 22.3% down on Q3 last year.
Net income for the quarter tumbled to $18m, compared with $107.2m for the third quarter last year.
Operating profit for Q3 fell 67% to $55.5m, compared with this time last year.
Avnet saw biggest falls in its electronics components (EM) business and less so in the IT business.
"Revenues and profits continued to deteriorate at Electronics Marketing while our Technology Solutions operating group showed signs of stability," said Vallee.
The company has also ear-marked a further $25m worth of cost reductions this year on top of the $200m previously announced.
Sales in the Electronics Marketing (EM) business were $2.1bn, down 20.1% year over year.
EM sales in EMEA were 24.3% lower in Q3.
"The decline that we experienced at EM in the December quarter accelerated during the March quarter as the global slowdown negatively impacted the broad industrial markets that drive our Americas and EMEA regions," said Vallee.
Sales of $3.7bn for the third quarter ended March 28, were 16.3% down on the previous quarter and 22.3% down on Q3 last year.
Net income for the quarter tumbled to $18m, compared with $107.2m for the third quarter last year.
Operating profit for Q3 fell 67% to $55.5m, compared with this time last year.
Avnet saw biggest falls in its electronics components (EM) business and less so in the IT business.
"Revenues and profits continued to deteriorate at Electronics Marketing while our Technology Solutions operating group showed signs of stability," said Vallee.
The company has also ear-marked a further $25m worth of cost reductions this year on top of the $200m previously announced.
Sales in the Electronics Marketing (EM) business were $2.1bn, down 20.1% year over year.
EM sales in EMEA were 24.3% lower in Q3.
"The decline that we experienced at EM in the December quarter accelerated during the March quarter as the global slowdown negatively impacted the broad industrial markets that drive our Americas and EMEA regions," said Vallee.
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