Avnet has reported sales of $4.3bn in its March Q3, down 8.3% year on year. The distributor reported a loss of $115.8m against a profit of $153.1m last year.
Global components sales declined 5% year-on-year from $4.33bn to $3.94bn.
Farnell sales fell 8.8% to £335m from $367m in Q3 last year.
Sales in Europe sagged 13.1% year on year from $1.74bn to $1.51bn. US sales dropped 7.2% to $1.2bn from $1.3bn last year. In Asia-Pacific sales fell 4% from $1.66bn to $1.59bn.
Avnet CEO Bill Amelio (pictured) cited softer demand, particularly in Asia, as well as softer pricing and increased costs related to the impact of COVID-19 on logistics operations.
Sequential comparisons show US sales growing 1.4% to $1.2bn, and European sales climbing 6.1% to $1.51bn,” a reflection of normal seasonality, as well as our focus on keeping the business running as effectively as possible over the past few months,” commented Amelio.
In contrast Asia-Pacific sequential sales slumped 17.1% to $1.59bn due to the seasonal impact of the Chinese New Year and the COVID-19 pandemic.
In a call with financial analysts, Amelio added “In terms of vertical market segments we saw weakness in auto as plants in the United States and Europe shutdown due to COVID-19. Our transportation was strong in the beginning of the quarter. We saw a trend down at the end of the quarter. Throughout the quarter and even today, we see continued strength in our defence and aerospace businesses, as well as medical and various parts of industrial, particularly where they are seen as essential. Although, not a vertical segment necessarily, we did see strength and steadiness in our EMS segment.”