Arrow Electronics first quarter 2020 sales fell 11% to $6.38 billion from $7.16 billion in the first quarter of 2019.
Profit was $50 million compared with $141 million in the first quarter of 2019.
Global components first-quarter sales of $4.55 billion declined 12% year over year.
Asia-Pacific components sales fell 5% year over year.
Europe components sales dipped 13% year over year.
Americas components sales dropped19% year over year. Global components first-quarter operating income was $165 million.
“Arrow maintains a firm commitment to our design, engineering, marketing and supply chain services, which play an essential role for our stakeholders as they navigate the unprecedented challenges associated with the COVID-19 pandemic,” said Michael J. Long (pictured), chairman, president, and chief executive officer. “I am grateful to our dedicated teams in all regions who have been working with urgency to ensure our customers and suppliers are well equipped to continue their business operations in the current environment. In addition to enabling secure work-from-home environments, Arrow is supporting the medical community’s life-saving efforts by providing critical electronic components and data management hardware and software.”
“Despite production stoppages, border closures and stay-at-home orders, our global components team demonstrated unwavering focus on our customers’ needs in the production of vital electronic equipment, delivering first-quarter financial performance consistent with pre-pandemic expectations,” continued Long. “We view global components financial results as a testament to the efforts of our team and our long-held belief that doing good is also good for business.”
Arrow’s global enterprise computing solutions first-quarter sales of $1.83 billion decreased 7% year over year.
“In connection with our shift from provisioning complex hybrid cloud solutions to rapidly enabling the massive migration to an at-home workforce, Arrow reported global enterprise computing solutions sales near the high-end of our prior expectations,” said Long.
“Looking ahead to the second half of the year, we anticipate a cautious, measured return to normal business activity, and Arrow is well positioned to continue benefiting from the robust cash flow our business generates. First-quarter cash provided by operating activities was $467 million thanks to our disciplined working capital management, including our new EMEA asset securitisation program, and efficiencies from our previously announced cost optimisation program,” said Chris Stansbury, senior vice president and chief financial officer. “Our liquidity position is the best in our company’s history, with more than $3.1 billion of undrawn committed borrowing capacity in addition to cash on hand.”