European component sales grew 12 per cent in the first quarter of 2014 at Arrow Electronics helping the distribution giant report first-quarter net income of $107m, compared with net income of $77.9m in the first quarter of 2013.
First quarter sales of $5.08bn increased 5 percent from sales of $4.85bn in the prior year.
Global component sales grew 7 per cent to $3.42bn. Sales in the Americas edged up 1 per cent, sales in Asia Pacific increased 12 per cent on Q1 2013.
“We continued to execute on our strategic initiatives in the first quarter. Earnings per share of $1.22 were above the midpoint of our guidance, while sales of $5.1 billion were slightly below our expectations. Global components delivered good growth. Business conditions for enterprise computing solutions were mixed; however, demand improved in April. We were pleased with the profitability performance across our businesses that resulted in 28 percent earnings-per-share growth,” said Michael J. Long, chairman, president, and chief executive officer.
Global enterprise computing solutions first-quarter sales of $1.66bn were flat year over year. Sales, as adjusted, decreased 11 per cent year over year, as storage and servers experienced lower demand globally. Trends in the Americas and Europe were consistent, characterised by growth in the software and security product lines.
“As we look to the second quarter, we would expect market conditions for our global components business to remain consistent with the first quarter. We expect some recovery in the markets served by our enterprise computing solutions business. We believe that total sales will be between $5.45bn and $5.85bn, with global components sales between $3.45bn and $3.65bn and global enterprise computing solutions sales between $2bn and $2.2bn.” said Paul J Reilly, executive vice president, finance and operations and chief financial officer.
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