Arrow's electronic components distribution business set records for revenue and income in 2011.
Revenues for the year were $14.85bn against $13.16bn in 2010; Income rose to $824m from $715m in the previous year. Fourth quarter revenues were up 3% to $3.44bn compared to $3.34bn in the same period of 2010. Income dipped slightly to $176m from $182m in Q1 2010.
"This has again been an exceptional year for Arrow Electronics as we set new financial records and successfully executed on our strategy to drive growth in our core global components and global ECS businesses as well as in high-margin lifecycle services," said Michael J. Long (pictured), chairman, president, and chief executive officer.
"We again reported industry-leading earnings per share, returns, and operating margins in the fourth quarter and full year 2011,” said Paul J. Reilly, executive vice president, finance and operations and chief financial officer. “We continue to deliver to and exceed our overarching goals of growing sales faster than the market, growing earnings at a faster rate than sales, generating returns well in excess of our cost of capital, and being cash flow positive."
Global components fourth-quarter sales of $3.44 billion increased 3 percent year over year. "The global components team did an admirable job of growing the legacy businesses in a market that was expected to decline in 2011, and set records for annual sales and operating income. In 2011 we executed on our strategy to expand the portfolio and increase our addressable market," Long commented.
Global enterprise computing solutions (ECS) fourth-quarter sales of $2.0 billion increased 5 percent year over year. "We had a remarkable year in ECS as the organisation also set records for sales and operating income. Over the course of the year, we made significant progress on our strategy to differentiate Arrow ECS and solidified our industry-leading position," said Long.
Added Reilly, "Looking ahead to the first quarter, we believe that total sales will be between $4.67 and $5.07bn, with global component sales between $3.35bn and $3.55bn and global enterprise computing solutions sales between $1.32bn and $1.52bn. Our guidance assumes that the average Euro to USD exchange rate for the first quarter is 1.31 to 1."