Avnet galloped into the first quarter of the 2015 financial year reporting sales of $6.84bn up 7.8% on $6.34bn in Q1 2014. Profits soared 12.2% to $223m against 199.5m in 2014.
Avnet EM organic sales grew 7.8% to $4.38bn in the firs quarter. The EMEA region was a star performer. Organic sales were up 7% to $1.30bn. Including the acquisition of MSC, sales grew 18%.
Rick Hamada, President and Chief Executive Officer of Avnet commented, “EM delivered another quarter of top-line growth that was at the high end of expectations and normal seasonality while expanding margins and returns year over year. In the September quarter, revenue increased 2.3% sequentially in constant currency, primarily due to a 10.8% increase in Asia partially offset by seasonal declines in the western regions.”
“On a year-over-year basis, EM’s organic revenue grew 7.8% led by the Asia region, which increased over 13.2%. Operating income grew 15.3% year over year with all three regions delivering double digit growth and operating income margin increased 17 basis points to 4.6%. Although September is typically a seasonally weak quarter for EM, our team delivered another quarter of improved financial performance across all regions. In Asia, where select high volume supply chain engagements are driving much of the current top-line growth, the team continues to increase returns and grow economic profit dollars.”
“ In EMEA, our team delivered a sixth consecutive quarter of year-over-year organic growth, and with the integration of MSC now essentially complete, our team is back to posting year-over-year increases in both margins and returns,” Hamada continued. “In our Americas region, the team returned to modest year-over-year revenue growth, which drove an increase in both margins and returns. While our book to bill ratio was slightly above parity at the end of the quarter, we are diligently monitoring our dashboards and we remain committed to driving further improvement in our financial performance as we continue to focus on our goals for the full fiscal year.”
Avnet’s Technology Solutions (TS) sales edged ahead 2.4% to $2.45bn in Q1 2015.
Avnet is forecasting EM sales in the range of $4.15bn to $4.45bn in Q2 and TS sales in the region of $2.85bn to $3.15 in in Q2. Total sales are predicted between $7bn to $7.6bn
Author
Mick Elliott
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