The Channel logo

News

By | Paul Kunert 1st May 2012 14:50

Arrow profits quiver as Q1 sales misfire

Biz reshuffle and components blamed for income dip

Arrow Electronics' Q1 profits have been derailed by restructuring charges and weaker than expected sales of components in Europe and Asia.

The enterprise distie giant reported a bottom line of just $113.6m (£70.1m), down 16.6 per cent compared to the same quarter a year ago, on the back of sales of $4.9bn (£3.02bn), a drop of 6.1 per cent.

Restructuring, integration and other charges totalled $8.2m, the distributor confirmed. Despite this, the perennially positive CEO Michael Long said the numbers were "in line with expectations".

The Enterprise Computing Solutions (ECS) global unit saw sales rise 15 per cent to $1.54bn. Long said ECS revenues were above normal seasonality driven by storage, software and services - each up by 20 per cent in the quarter.

The global components unit dropped the ball as sales fell 14 per cent to $3.35bn.

"Weaker macroeconomic conditions is Asia and Europe have had a negative impact on our results," said Arrow's chief, commenting on the unit. ®

alert Send corrections

Opinion

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

Hacked US CENTCOM Twitter account
Roll up, roll up, get your exclusive market insights
Wile E. Coyote goes over the edge again
money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals