Arrow, Avnet hit profit skids
Arrow Electronics and Avnet, the world's two biggest electronics components disties, have issued profits warnings. Both companies have substantial computer parts wholesaling arms too.
Arrow today said Q2 earnings would fall more than anticipated because of falling demand in North America, Europe and Asia. It now expects to break even-to-earn 5 cents a share. In Q2 last year, the distie made 85 cents a share.
Q2 sales will be 25-20 per cent lower than Q1's $3.3bn, Arrow said. Particularly worrying is weakness in Europe, where Arrow generates 30 per cent of its business.
But on the bright side, Avnet, it's biggest rival is doing no better. Yesterday it announced that sales in its current Q4 quarter were 25-30 per cent down on Q3's $3.2bn. Avnet previously estimated sales would fall 15-20 per cent this quarter. The company is pink-slipping 1,100 people. ®