Avnet has announced its results for the fourth quarter and fiscal year 2016 ended July 2, 2016.
In Q4 sales were $6.2bn down 8% year over year and consistent with outlook
“In the June quarter, our Technology Solutions (TS) group delivered seasonal sequential growth while Electronics Marketing (EM) sequential growth was below our normal seasonal range. Even with the year-over-year decline in revenue, our gross profit margin increased and our Avnet Advantage program resulted in $70m of annual expense reduction exiting fiscal 2016,” said Bill Amelio, interim CEO of Avnet. “Moving forward, we are defining a clear strategy that leverages our strengths, and we are focusing on accelerating growth, taking cost out of the business and delivering services that will add value for our partners.”
Amelio further added, “We have also increased the pace of some of our strategic investments as we focus on building and enhancing our global capabilities. Our recent offer to acquire Premier Farnell is one example of how we aim to strengthen our digital footprint worldwide. With disciplined execution against our priorities, we can drive sustained growth over time.”
Q4 operating income at $173m was down 4.2% year on year.
Avnet Electronics Marketing reported sales of $3.9bn down 8.7% year on year. The EMEA region was a bright spot turning in revenues of $1.29bn, up 3.9% year on year. Sales in the Americas plummeted 14.8% to $1.08bn, and Asia sales also headed south to $1.56bn, a drop of 13.2% on last year. EM profit plunged 24.4% to $155.6m. Avnet Technology Solutions reported sales of $2.29bn down 7.8% year on year.
For the full financial year Avnet reported sales of $26.2bn, down 6.1% year over year (3.2% in constant currency). Operating income fell 4.8% to $787.7m.