Arrow Electronics has reported fourth-quarter 2019 sales of $7.34bn, a decrease of 7% from sales of $7.92bn in the fourth quarter of 2018. Net income was $112m, compared with net income of $231m in the fourth quarter of 2018.
Global components fourth-quarter sales of $4.74bn slumped 10% year over year. Asia-Pacific components sales increased 4% year over year. The damage was done in Europe where components sales decreased 16% and the Americas where components sales plummeted 19% year over year. Global components fourth-quarter operating income was $150 million.
Global enterprise computing solutions fourth-quarter sales of $2.60bn were down 2% year over year.
Michael J. Long, Arrow’s Chairman, President and Chief Executive Office said that the global components’ sales and margin performance continued to demonstrate greater resiliency compared to past economic and semiconductor industry corrections.
“As we prepare for economic recovery, we continue to increase the scale of our Asia components business, which we expect to lead to greater profit. Arrow is well positioned to accelerate profit growth and expansion as soon as demand from end-customers stabilises and improves,” he added.
“During the fourth quarter, and throughout 2019, Arrow’s enterprise computing solutions focused on accelerating the evolution toward selling advanced, next-generation software and hardware architectures,” said Long. “We believe our line card and capabilities are well positioned to assure mutual success for suppliers, VARs and MSPs, and their customers as we begin the new decade.”
Arrow’s full year revenues came in at 28.92bn down 3% from sales of $29.68 billion in 2018. Net loss for 2019 was $204 million, compared with net income of $716 million in 2018.
Looking ahead to the company’s first quarter, Chief Financial Officer Chris Stansbury, said that Arrow was seeing some delays and extended lead times of products manufactured in China due to business and transportation shutdowns, as well as the extension of the New Year Holiday week mandated by the Chinese government.
“The situation in that region remains uncertain, and we are monitoring conditions closely. Currently, we are not able to quantify the potential impacts to our first-quarter outlook,” he added.