Arrow Electronics 2Q 2019 sales dipped 1% to $7.34bn against $7.39bn in the second quarter of 2018. The company reported a second-quarter net loss of $549m compared with net income of $170m in the second quarter of 2018.
Global components second-quarter sales of $5.27 billion were flat year over year. Europe components sales decreased 2% year over year. Asia-Pacific components sales increased 4% year over year. Americas components sales decreased 3% year over year. Global components second-quarter operating loss was $562m.
“Despite facing challenging market conditions in the second quarter, and an ongoing inventory correction, we are encouraged by the significant progress we continue to make in executing our long-term strategy,” said Michael J. Long (pictured), chairman, president, and chief executive officer. “We are leveraging our integrated solutions and expanded reach to drive innovation forward for our customers, and remain committed to continuing to expand engineering services and lead the convergence of information technology with operational technology. We are confident that the steps we are taking today to strengthen our focus on the key technology areas of smart cities, smart homes, and smart connected vehicles, will not only enhance shareholder value, but also improve people’s lives.”
Global enterprise computing solutions second-quarter sales of $2.07bn dropped 2% year over year.
“Arrow is committed to capitalising on opportunities available to us, and to that end, we continue to align and evolve our enterprise computing solutions business toward advanced, higher-value software-led solutions,” said Long. “We are pleased that our infrastructure software and security solutions again produced healthy growth on a year-over-year basis in the second quarter.”
Last month Arrow said it will close its personal computer and mobility asset disposition business, whose past results have been included as part of the global components business. As a result it expects to incur charges of approximately $115 million.
Arrow says it will also cut costs by $130m by the end of 2019.