Arrow profits tumbled 70 per cent in the first quarter of 2009 as the global economic crisis hit worldwide component sales.
First quarter profits was $26.7m against $85.9m in the same quarter last year. Sales declined 15 per cent from $4.03m last year to $3.42bn, but would have declined 18 per cent without the acquisition of Logix.
"We executed well in the first quarter, despite the persistent backdrop of global economic uncertainty and turbulence, with sales and earnings per share in line with our expectations. Cash flow generation was again a bright spot, as we generated more than $230 million in cash flow from operations, marking our 10th consecutive quarter of positive cash flow generation," said William E. Mitchell (pictured) , chairman and chief executive officer.
"We achieved our targeted level of cost reductions, and reduced expenses at a faster rate than the decline in sales. Our disciplined financial strategy and solid market position are competitive advantages, and we will continue to manage the company in a prudent, fiscally disciplined manner to increase profitability, maintain positive cash flow, and strengthen our already strong balance sheet. However, we cannot ignore the fact that economies around the world are still struggling with recessionary conditions, and this will continue to have an impact on our business. Our visibility remains extremely limited, and we are not prepared to call a bottom yet."
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