Year-over year sales declines at Arrow Electronics’ two divisions showed signs of stabilisation during the third quarter but profits fell steeply.
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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.