Web, EDE Strategy Paying Dividends, says Premier Farnell

Premier Farnell joined the consensus of voices suggesting the worst of the recession is behind us. The distributor says the sales decline in Europe and Asia Pacific has abated.

Farnell suggests however that this has as much to do with its strategy, as both these regions have a high proportion of sales to electronic design engineers (EDEs) and via the web, both key components of the strategy instigated by chief executive officer Harriet Green. She says that the company has taken market share and outperformed the market in both these regions

Premier Farnell's web sales in its distribution business are growing at five per cent a year. Farnell Europe now achieves 55 per cent of its total sales via eCommerce channels.

The second quarter numbers reveal a 17 per cent decline in revenues from £195.8m last year to £183.7m in 2009. Profits fell 18 per cent to £20.6m from £22m last year.

Other highlights show business in developing markets growing strongly. Sales in eastern Europe are up 39 per cent in the second quarter. Sales in India soared 99 per cent, China sales grew at a more sedate five per cent.

element14 the design engineering community web site launched earlier this year has so far attracted 6,000 customers.