Global distie posts third quarter results
Global distributor Avnet has turned in its financial results for its third quarter to 31st of March.
Sales for the quarter amounted to $6.28 billion, a fall compared to the same quarter last year of 5.9 percent.
Avnet said that was mostly due to a “double digit” decline in its EMEA region for both its Electronic Marketing (EM) and Technology Solutions (TS) groups.
Rick Hamada, the chief executive officer for Avnet said that this time last year the company was at its peak of a “V-shape” recovery that drove profitability.
He said there had been an inventory correction which led to negative growth in the first three quarters of its fiscal year but that now appears to be returning to a seasonal pattern.
In its TS division, operating income grew by 19 percent, but revenue declined. EM grew by 10 percent year on year.
TS delivered improved margins in EMEA and the Americas, Hamada said. Demand for datacentres and cloud technology are making more opportunities for the channel, he said. Avnet “continues to increase the value we deliver to our VAR partners mature markets”.
The group, as a whole, turned in a gross profit margin of 12 percent.