Profit warning – Avnet's turn
Avnet is the latest on the block with a profits warning.
The distie giant says its electronics components division has been particularly badly hit with Q1 sales ended September down 44 per cent on the same period last year and 20 per cent sequentially
Avnet's applied computing division, which flogs CPUs and other components to systems builders, and computer marketing, its VAR wholesale business were also "negatively impacted", with sales 7 per cent up sequentially for the AAC and down 8 per cent for ACM. Collectively, these two saw sales rise 3 per cent in the quarter.
Avnet is now forecasting a loss on continuing operations of $0.17 to $0.20 per share. It says that is already undertaking a cost-cutting exercise, which will see operating expenses reduced by $175m approx. compared with the end of calendar year 2000.
And, "in response to current revenue levels, additional actions were taken at the end of September 2001 that will reduce expenses by another $40 million on an annualized basis". ®