On the lower end of expectations says company
Avnet has said that its profits for the first financial quarter of 2013 will be on the lower end of its original expectations.
The distribution company said the earnings will total around $5.85 billion, roughly 9 percent below the year-ago quarter.
It added that sales at Electronics Marketing (EM) and Technology Solutions (TS) for the September quarter wre expected to be approximately $3.65 billion and $2.20 billion, respectively.
The company blamed the climate for its offerings and also said that it would be planning cost-cutting moves on top of the $40 million to $50 million in expense reductions it announced in August.
Although the company didn’t go into detail, there have been suggestions that this may include redundancies.
Rick Hamada, Chief Executive Officer at the company said the worst hit region was the Americas. He added that uncertain macroeconomic conditions continued to negatively impact key areas of end demand in the company’s served markets.
“The shortfall to our expectations was more acute at our TS business, where we experienced a second consecutive quarter of weaker than expected transaction activity at the end of the quarter as customers delayed IT projects,” he said in a statement.