Cost cutting will continue to be the theme at Arrow Electronics as the distributor looks to do its bit in-house to improve its position as it continues to cope with a difficult economic picture across some of its key markets.
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The mission now is to shave a further $20m in cost savings off the running costs after the targets for the second quarter were missed as a result of a flat performance.
Net income of $114.4m did not compare too well with last year's equivalent of $156.2m and sales of $51.5bn dropped by 7% compared to $5.54bn in the same quarter in 2011.
The components side of the business declined by 11% with a 14% drop in Europe and the enterprise compiting solutions (ECS) businsses saw a 2% drop in sales to $1.70bn.
The quarter also saw the distributor acquire Altimate Group, a move designed to strengthen its position in the enterprise and midrange market, which it described as a strategic investment designed to give it greater options in the future.
"Although the macro environment continues to be challenging, we remain committed to selectively investing in line with our strategic priorities to drive organic growth and strengthen the business. At the same time, we are taking $20 million in additional cost and expense reduction actions as we continue to advance the efficiency of our organization," said Michael J. Long, chairman, president, and CEO of Arrow.