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Electronic components recovery drives Avnet sales up 13% in Q2
Phoenix, Ariz. — Avnet, Inc. has reported revenue of $4.83 billion for the second quarter fiscal year 2010, ended January 2, 2010, boosting sales by 13.2 percent over the second quarter fiscal year 2009.
Roy Vallee, chairman and chief executive officer, attributes the growth to widespread strength in all three regions at both the Electronics Marketing (EM) and Technical Solutions (TS) operating units. Vallee stated: “Avnet’s strong growth this quarter provides further evidence that the global economy has begun the next growth cycle as sales at both operating groups came in well above normal seasonality and our upwardly revised expectations for the quarter.”
Avnet EM reported $2.52 billion in revenues for the quarter, fueled by the accelerated recovery in electronic components in the second quarter of FY10, increasing sales by 11 percent over the same quarter in the previous fiscal year.
Avnet EM sales in the EMEA and Asia region increased 11.8 percent and 35.0 percent, respectively, year-over-year on a reported basis, while sales in the Americas decreased 8.6 percent in the second quarter of FY10 over the prior year quarter.
“The recovery in the electronic components markets accelerated this quarter as EM delivered double-digit sequential revenue growth after adjusting for the extra week in the September quarter,” stated Vallee.
Avnet says double-digit sequential growth in EM’s western regions suggests that the industrial markets, which are typically driven by corporate capital expenditures, are experiencing growth in end demand. Avnet EM bookings continue to be strong going into the March quarter, with book to bill ratios above 1.1:1.
Avnet EM also continued to invest in programs that support its customers’ and suppliers’ design and supply chain needs. This included its X-Fest global seminar series, which drew a record number of participants and suppliers in 2009. The event is credited for generating 1,200 new design opportunities for the engineering community.
Avnet Technology Solutions (TS) reported sales of $2.32 billion in the second quarter FY10, up 15.8 percent year-over-year. Second quarter FY10 sales in Americas, EMEA and Asia were up 11.7 percent, 4.3 percent and 136.5 percent, respectively, year-over-year.
Avnet forecasts sales of between $4.10 billion and $4.70 billion for the third quarter FY10 with EM sales in the range of $2.55 billion to $2.85 billion and TS sales between $1.55 billion and $1.85 billion.
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