Arrow Electronics' share price fell to a five year low today after it filed third quarter results that fell short of analyst expectations and demonstrated pricing pressure in a tightening global economy.
Revenues for the three months ended 30 September rose to $4.3bn from $4.03bn a year earlier but profits tanked from $98.3m to $76.1m, a 22.5% decline that sent Arrow's share price plummeting to $17.15.
"The volatility in the world's economies and the virtual shutdown of the credit markets made the third quarter especially difficult," said William Mitchell, chairman and chief executive at Arrow.
"There is no doubt that market conditions will continue to be challenging, and in response to the rapidly changing environment, we will make the appropriate and necessary adjustments to our business model to ensure continuing and profitable success and long term sustainability," he added.
The split in revenues saw the Global Enterprise Computing (ECS) Solutions division account for $1.31bn, a 12% rise year-on-year and components distribution grew 5% to $2.99bn.
Looking ahead, Arrow sung from the same hymn sheet as the rest of the industry and warned, as Apple did this morning, that there the market was highly unpredictable.
"Given the poor economic conditions and unprecedented volatility in the financial markets, our visibility is more limited than normal," said Paul Reilly, Arrow CFO, "we believe it is prudent to provide a wider than normal guidance range to account for the greater degree uncertainty."
Fourth quarter sales are expected to be between $4.05bn and $4.45bn, he added.