Avnet has reported Q2 sales of $4.7 billion up from $4.5 billion in the prior year quarter, supported by record sales in Asia of $2.2 billion, up 16% year over year.
Sequential sales dipped 1.2% from $4.7 billion in Q1.
Profit was ahead 23.1% at $57.2 million year on year and rocketed 209.3% sequentially.
Farnell operating margins increased sequentially 97 basis points to 4.5%.
Sales of Texas Instruments (TI) products were $50 million compared with $399 million in the prior year.
When excluding TI, organic sales grew 9.3% year over year on a constant currency basis.
Avnet ceased distributing TI products on Dedember 31 last year.
“Improvements in our Farnell, EMEA and Americas businesses, complemented by a record revenue quarter in Asia, reflect our continued progress in driving operational efficiencies and enhancing key business lines through strategic investments,” commented Avnet CEO Phil Gallagher (pictured).
“We’ve seen tangible results from this back to the basics strategy over the past two quarters with increased sales, improving returns on capital and a stronger balance sheet. As a result, we are better positioned today to manage our backlog and working capital to navigate uncertainties resulting from COVID-19,” continued Gallagher. “I am incredibly proud of our team’s resilience amidst the challenges this past year. They’ve delivered significant value in providing uninterrupted service at a global scale and in working collaboratively with our customers and suppliers to manage forecasts, navigate current market dynamics and mitigate supply chain risk.”