Avnet's top line growth stalled in Q1 largely due to the testing macroeconomic landscape in the Europe, the Middle East and Africa (EMEA) after seven consecutive quarters of increases.
Pro-forma revenues for the trading period ended 1 October were flat on a constant currency basis at $6.4bn (£4bn), operating profit was up 14.7 per cent to $223m (£138.7m) and net profits edged up 0.6 per cent to $139m (£86.4m).
Rick Hamada, Avnet CEO attributed the sales dip "to the double-digit sequential revenue declines experienced in our EMEA region at both operating groups after adjusting for the impact of acquisitions and currency."
Reported revenues at the Electronics Marketing division - industrial components - were up 5.4 per cent to $3.82bn or flat on a pro forma basis. Excluding currency sales grew in the Americas and Asia but fell 4.6 per cent in EMEA.
Technology Solutions grew nearly two per cent to $2.6bn on a constant currency but EMEA sales fell 3.6 per cent, the Americas were down five per cent and Asia grew 51.4 per cent. Operating profits were up 14 per cent to $65m.
Looking ahead to fiscal Q2, Avnet is forecasting consolidated sales of between $6.45bn and $7.15bn.
Hamada said: "Although it is difficult to forecast future demand in the current macro economic environment, we are encouraged by the speed with which the electronics supply chain is rebalancing and the relative strength of our computer business outside of EMEA." ®