Arrow has strong Q2, wipes out recession
Arrow has surpassed pre-recession revenues and profits in a bumper second quarter during which both components and IT divisions returned to double-digit growth, writes Paul Kunert.
Sales for the period ended 3 July were up 36% year-on-year to $4.61bn as profits soared to $116.2m from $21.1m in 2009.
Operating margin reached the highest level since the end of 2007 and return on capital employed rose more than two times on the year ago period.
The enterprise computing solutions division – which recently acquired Sphinx – pushed up sales 21% to $1.35bn, the distributor revealed.
“Storage, software services and industry-standard servers grew at very strong double-digit rates on a year-over-year basis,” said Arrow CEO Michael Long.
The marked improvement was also evident in the global components unit as sales climbed 44% to $3.26bn.
“Exceptional sales growth in all of our components regions led to record-levels of sales and operating income,” Long added.
For the third quarter, Arrow has forecast sales of between $4.39bn and $4.79bn.
Paul Kunert is chief reporter on the Microcope website