Well, well here's a turn up at the top. Avnet and Arrow have both recently posted financial results and absolutely strolled past the forecasts and expectations of analysts .
Avnet's results look the more impressive breaking its own records for revenue and profit, while Arrow weren't too far off records of their own.For the record Avnet sales for 2008 were $17.95bn up from last year's $15.68bn and profit was $499.1m against $393.1m last year.
Considering the state of the global economy the good denizens of Melville and Phoenix have every right to look pretty pleased with themselves.
Both have had to take restructuring charges during the year to ensure they stayed on course. Both have increased sales in the key global economic regions. Both have made acquisitions during the financial periods reported.
Interestingly Avnet's acquisition policy has focused on Europe, perceived to look weaker against the Asia/Pacific market steamroller and the north American powerhouse.
The European acquisitions which include Memec and Azzurri sharpen Avnet's technical edge and help them embrace some niche suppliers which might not fit into their bigger business models. These moves helped Avnet grow European sales by 20% in its financial year 2008. This outstrips its 10% plus growth in Asia/Pacific and the more slothful 2.4% uptick in north America.
Arrow made hay in Asia/Pacific. What Michael Long, its president and chief operating officer describes as "particularly strong, above average growth" there saw Arrow outgrow the market.
North America sales Arrow describes as stable. It's European prognosis is less bright, "conditions remained soft in the second quarter," said Long.
The good news is that right now both companies are perky about the future.
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