Avnet Q4, Full Year Profits Surge

Avnet’s financial results sprinted through the fourth quarter as sales accelerated by 6.9 per cent to $7.05bn and profits soared 47.7% to $186.3m. Full year 2014 results benefited and these showed revenues climbing 8 per cent from $25.5bn last year to $27.bn in 2014. Profits rose 15.3 per cent to $931m compared with $807.9m last year.
Avnet’s Electronic Marketing (that’s the components business) produced an impressive performance in the MEA region where reported sales (including revenues from the acquisition of MSC Technologies) were 24.1 per cent up and organic sales up 11.9 per cent to $1.39bn.
Avnet EM Asia/Pacific revenues climbed 15.2 per cent to $1.68bn.
Rick Hamada,pictured, Avnet Chief Executive Officer, commented, “In fiscal 2014, our return to year-over-year growth helped drive meaningful improvements in our financial and operational performance. We added over $2 billion to our top line, expanded margins and returns, and grew adjusted diluted earnings per share at twice the rate of revenue. Led by double digit growth in our Electronics Marketing (EM) businesses in Asia and EMEA, enterprise revenue increased 8% and organic revenue was up 5%. The combination of revenue growth, relatively stable gross profit margin and continued expense discipline resulted in adjusted earnings per share growing 16.8% over fiscal 2013 to $4.24. During the year, we also invested in growth initiatives by strengthening our embedded systems capabilities at EM with the acquisition of MSC Technologies and expanding our data centre solution capabilities by incorporating new technologies, services and partners to our TS offerings.”
Hamada added, “We closed out fiscal 2014 with a strong quarter as both revenue and earnings per share were at the high end of expectations and margins and returns improved sequentially. Enterprise revenue grew 6.9% year over year and 5.2% sequentially in constant currency, which is at the high end of normal seasonality, driven by stronger than expected revenue in our TS Americas and EM Asia regions. While our fourth quarter results showed some encouraging signs in certain end markets, looking ahead to fiscal 2015, I would continue to characterise our overall outlook as mixed in nature. Given these expectations, we will keep driving increased leverage and margins where growth is strongest, while always refocusing our valuable resources on higher-growth and return opportunities.”