Arrow shot through the heart with $159m loss
'Visibility remains clouded at best' - CEO
Arrow Electronics, the world's biggest electronics components distie, has reported a Q3 net loss of $159.1 million on sales of $2.2 billion. A year earlier it managed a net income of $101.9 million on sales of $3.3 billion.
The loss included special charges of $145.1 million, after tax, for canning more than 1,200 people, closing or merging 15 facilities, adjusting inventory, Internet investments, and axing unprofitable customer deals. Without this the loss would have been $14 million.
Francis M. Scricco, pres and chief exec, said: "The significant actions we've taken during the quarter should enable us to be modestly profitable at current sales and margin levels without sacrificing our future."
Worldwide components revenue decreased 43 per cent from last year's third quarter to $1.5 billion - this was mainly due to the depressed telecom and networking markets.
Computer products sales totalled $643 million, virtually flat with last year's third quarter.
"Market conditions are difficult, and visibility remains clouded at best," said Scricco. ®