Arrow Electronics reported third quarter 2013 net income of $96.8 million, compared with net income of $103.6 million in the third quarter of 2012.
Excluding restructuring, integration, and other charges of $22.6 million and $74.4 million for the third quarter and first nine months of 2013 and $14.6 million and $36.2 million for the third quarter and first nine months of 2012, respectively, net income would have been $119.9 million in the third quarter of 2013 compared with net income of $119.3 million in the third quarter of 2012.
Third quarter sales of $5.05bn increased 2 per cent from sales of $4.96bn in the prior year.
“We again produced excellent results in the third quarter, with revenue and adjusted earnings per share growing 2 percent and 8 percent, respectively, year over year. In a global macro environment that remains unsettled, we continue to execute well,” said Michael J. Long, chairman, president, and chief executive officer, “striking the right balance between maximising our performance in the short term and investing in our long term strategy. In addition to growing the business and expanding margins, we invested in acquisitions that will accelerate our growth.”
Global components third-quarter sales of $3.47bn increased 3 per cent year over year and were in line with expectations. Sales, as adjusted, increased 1 per cent year over year. In the Americas, sales increased 2 per cent year over year. European sales, as adjusted, advanced 4 per cent year over year. Sales in the Asia-Pacific region were essentially flat year over year. Global components operating income, as adjusted, grew 6 per cent year over year to $169.1 million.
Global ECS third-quarter sales of $1.58bn decreased 1 per cent year over year. Sales, as adjusted, declined 2 per cent year over year. In the Americas, sales growth was 3 per cent year over year. In Europe, sales, as adjusted, decreased 14 per cent year over year. The company noted that both regions were affected by the quarter end cut off, which was earlier than some of their suppliers. Global ECS operating income, as adjusted, grew 7 per cent year over year to $63.7 million.
Arrow’s net income for the first nine months of 2013 was $264.6 million compared with net income of $331.6 million in the first nine months of 2012. Excluding certain items in both the first nine months of 2013 and 20121, net income would have been $347.0 million in the first nine months of 2013 compared with net income of $378.1 million in the first nine months of 2012. In the first nine months of 2013, sales of $15.2bn increased 1 per cent from sales of $15.0bn in the first nine months of 2012.
Looking ahead, the company currently expects to see normal seasonality in the fourth quarter of 2013 with total sales between $5.6bn and $6.0bn. global components sales are expected to be between $3.2bn and $3.4bn and global enterprise computing solutions sales between $2.4bn and $2.6bn. said Reilly.
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