Avnet has made a flying start to its new financial year posting an 8.1 per cent increase in revenues to $6.35bn compared to $5.87bn in Q1 last year. Profits grew a chunky 20.3% to $120.6m from $100.3m last year.
The components business (EM) has grown 7.8 per cent year on year pushing revenues up to $3.9bn. Star turns were the EMEA region which contributed a 14.5 per cent sales increase to $1.098bn and Asia/Pacific where sales came in 16.5 per cent higher at $1.64bn. In contrast the Americas posted a sales decline of 6.8 per cent to $1.20bn.
Rick Hamada, Chief Executive Officer of Avnet commented: “Similar to the June quarter, EM sales were at the high end of normal seasonality as organic revenue in constant currency increased 1.2% sequentially with strong demand in the Asia region offsetting seasonal declines in the western regions. Asia revenue grew 12.6% sequentially, which helped drive EM’s year-over-year organic growth to 8.0% in constant currency. The Asia region, which grew to represent 42% of EM sales this quarter, delivered record revenue and operating income while driving returns to their highest level in three years. In the EMEA region, we recently completed the first step of our acquisition of MSC Investoren, which will strengthen our position in semiconductor distribution and allow us to tap the embedded systems marketplace for new growth opportunities in Europe. With a strong competitive position and year-over-year growth rates improving, we expect to capitalise on profitable growth opportunities and drive further improvement in margins and returns across the EM portfolio.”
Avnet’s computer channel business (TS) grew revenues 8.6 per cent to $2.41bn.
Avnet is forecasting Q2 EM sales in the range of $3.80bn to $4.10bn and TS sales between $2.85bn to $3.15bn.
Author
Mick Elliott
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