Avnet sales slump on weak sales and supply correction

Avnet has announced lower than expected income following supply chain corrections and a drop in demand in EMEA.

The global distributor’s sales for the fourth fiscal quarter were down 8.8 percent from the same period last year, falling from $6.9 billion in 2011 to $6.3 billion.

For the whole fiscal year, ending June 30 2012, the results were also down 3.1 percent from $26.5 billion the previous year to $25.7 billion.

Rick Hamada, Chief Executive Officer, said that the disappointing results were a reflection of both a “supply chain correction” and “slowing global economic growth” impacting on IT spend  towards the end of the financial year. Both Avnet Electronics Marketing and Avnet Technology Solutions saw revenues drop in EMEA, with smaller decrease across other regions.

Hamada reflected that the distributor is cautious over the precarious economic situation across the world as it goes into the next financial year, though will continue to push for growth.

Hamada added: “With the heightened level of uncertainty around global economic growth, we enter fiscal 2013 poised to execute on our growth strategies yet will continue to manage the portfolio and react quickly to market conditions in order to continue to progress toward our long-term margin and return goals.”

Hamada also pointed to the recent acquisition of Magirus as a cause for optimism for future growth.