Revenues were $4.83bn up 13.2 percent against the second quarter of 2009, and net profit for the corresponding quarter was $103.9m, a rebound from the $1.205bn loss incurred last year due to swingeing goodwill charges.
The component distribution business represented by Electronics Marketing posted sales of $2.52bn, up 11 per cent on Q2 2009, driven by a whopping 35 per cent sales increase in Asia and a very respectable 11.8 per cent uptick in EMEA. The Americas region fared less well as sales fell 8.6 per cent.
Roy Vallee, Chairman and Chief Executive Officer, commented, "Avnet's strong growth this quarter provides further evidence that the global economy has begun the next growth cycle as sales at both operating groups came in well above normal seasonality and our upwardly revised expectations for the quarter. This strength was widespread as all three regions in both EM and Technology Solutions delivered sequential growth that was well above normal seasonality after adjusting for the extra week in the September quarter."
He added, "The recovery in the electronic components markets accelerated this quarter as EM delivered double digit sequential revenue growth after adjusting for the extra week in the September quarter. This much better-than-normal seasonal growth, combined with the benefits related to the restructuring actions initiated last year, resulted in the second consecutive quarter of improved operating income margin. In the December quarter, EM operating income margin increased 32 basis points sequentially which, when combined with record working capital velocity, led to a 256 basis point year-over-year increase in return on working capital. While Asia has been consistently stronger over the past couple of quarters, we are seeing indications that the industrial markets in the
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