RS Group has reported like for like Q3 sales down 10%. Electronics sales plummeted 23%, and revenues in the Group’s industrial range declined 6%.
Like-for-like revenue in digital was down 7%, RS PRO grew 2% and service solutions increased 4%.
EMEA revenues slipped 3%, in the Americas revenues slumped 19% and Asia/Pacific sales fell 13%.
The Group cited weaker than anticipated markets, and surplus inventory at customers, particularly in electronics and associated products for the decline.
Americas’ performance reflected higher exposure to automation and control and electronic products and small industrial manufacturers than the rest of the Group.
Revenue grew 1% when a 14% contribution from Distrelec and Risoul is included.
Despite geopolitical uncertainty, extended holiday periods and extreme weather RS says trading in Asia/Pacific is improving. EMEA is stable and the Americas remain challenging.
Simon Pryce (pictured) RS Group Chief Executive Officer commented: “Q3 trading was challenging reflecting the difficult economic backdrop, geopolitical uncertainty, weak industrial and electronic markets and customer surplus inventory in electronics. We are seeing good contributions from our growth accelerators, with digital outperforming the broader business and RS PRO and service solutions both growing. Accelerated integration of our acquisitions is highlighting additional medium-term upside and the potential for significant further operational improvement benefits over time. We are making good progress on strategic and tactical actions to improve operating leverage and drive outperformance. We remain confident in our ability to accelerate value creation for all our stakeholders when our markets return to growth and over the longer term.”