Arrow Electronics has reported second-quarter 2017 sales of $6.47 bn, an increase of eight percent from sales of $5.97bn in the second quarter of 2016. Second-quarter net income of $100m compared with net income of $134m in the second quarter of 2016. In the second quarter of 2017, changes in foreign currencies had negative impacts on growth of approximately $57m or one per cent on sales compared to the second quarter of 2016.
“Our investments in our digital platform, IoT and cloud capabilities, and sustainable technology solutions have allowed Arrow to stay ahead of changes to the distribution industry and the broader technology environment,” said Michael J. Long, chairman, president, and chief executive officer. “These investments drove record second-quarter gross profit and record second-quarter sales that were above the high end of our expectation.”
Global components second-quarter sales of $4.46bn soared 16 percent year over year. Second-quarter sales, as adjusted, grew 17 percent year over year. Americas components sales grew 15 percent year over year. Asia-Pacific components sales grew 21 percent year over year. Europe components sales grew 13 percent year over year. Sales in the region, as adjusted, grew 16 percent year over year. Global components second-quarter operating income grew 11 percent year over year and grew nine percent year over year excluding amortisation of intangibles expense.
“Global components sales exceeded the high end of our expectation for the third quarter in a row driven by robust customer growth and deeper engagements with existing customers,” Long commented.
Global enterprise computing solutions second-quarter sales of $2bn declined six percent year over year. Second-quarter sales, as adjusted, declined five percent year over year. Global enterprise computing solutions second-quarter operating income declined two percent year over year and declined three percent year over year excluding amortisation of intangibles expense.
“Our industry-leading infrastructure software and cloud portfolio produced strong growth again this quarter, but were offset by declines in legacy hardware,” added Long.
“Second-quarter cash flow from operations was negative $112 million. We are making substantial working capital investments to support our rapid growth, and believe these organic investments in our business have high return potential longer term,” said Chris Stansbury, senior vice president and chief financial officer for Arrow Electronics.
In the first six months of 2017, Arrow’s sales of $12.22bn increased seven percent from sales of $11.45bn in the first six months of 2016. Net income for the first six months of 2017 was $213m compared with net income of $241m in the first six months of 2016. Excluding certain items1, net income would have been $292 million in the first six months of 2017 compared with net income of $285million in the first six months of 2016.
“As we look to the third quarter, we believe that total sales will be between $6.325bn and $6.725bn, with global components sales between $4.4bn and $4.6bn, and global enterprise computing solutions sales between $1.925bn and $2.125bn,” said Stansbury.
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