Outstanding component sales growth in Asia/Pacific supported by more modest advances in Europe and the Americas propelled Arrow Electronics global components sales ahead by 8 per cent to $3.73bn in Q3 2014.
Global enterprise computing solutions third-quarter sales of $1.88bn grew 19 per cent year over year. Sales, as adjusted, grew 7 percent year over year with growth in both Americas and Europe.
These performances lifted Arrow’s total sales to $5.61bn, an increase of 11 per cent on Q3 2013. Profits rose to $146.9m compared to $96.8m in 2013.
Arrow’s outlook for the fourth quarter is optimistic too predicting total sales will be between $6.1bn and $6.5bn, with global components sales between $3.4bn and $3.6bn and global enterprise computing solutions sales between $2.7 billion and $2.9 billion.
“In the third quarter we again produced outstanding results and invested in our long-term strategic sales-related initiatives. Earnings per share of $1.40 were above our expectations, with sales of $5.6 billion at the high end of our guidance. Both of our global components and enterprise computing solutions segments delivered sales and operating income growth. The stable, slow-growth demand environment for global components matched our expectations. Our focus on the higher value portion of the datacenter has aligned our enterprise computing solutions business with the faster growth areas of IT spending,” said Michael J. Long, chairman, president, and chief executive officer.
Americas components sales increased 2 percent year over year. Europe components sales grew 4 percent year over year, and the region grew year over year for the sixth consecutive quarter on an as-adjusted basis. Components sales in the Asia-Pacific region increased 18 percent year over year.
Both regions continued to experience very strong growth in software and services, while storage and networking also delivered growth.
Arrow’s net income for the first nine months of 2014 was $381.9m compared with net income of $264.6 million in the first nine months of 2013. In the first nine months of 2014, sales of $16.4bn increased 8 per cent from sales of $15.2bn in the first nine months of 2013.
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