Arrow Electronics sales and profits up in Q3
Distie behemoth claims share from rivals, plans expansion
Distribution juggernaut Arrow Electronics ploughed through Q3 with sales and profits up by double digits.
The US firm, which recorded an 11 per cent rise in turnover to $5.19bn (£3.26bn) and an 11.5 per cent climb in profits to $132.2m (£83.1m) for the period ended 1 October, is now planning to beef up its vendor and services portfolio.
Arrow CEO Michael Long said that in the "face of these uncertain economic times" it took share from rivals in both its global components biz and the enterprise computing solutions (ECS) unit.
The components arm grew sales 6 per cent to $3.65bn on the back of a stronger turnout in Europe and the Americas, which Long said was "partially offset by weakness in the Asia Pacific region, reflecting difficult market conditions."
ECS fared better, with sales up 26 per cent to $1.54bn led by growth in services, software, proprietary servers, industry standard servers and storage.
Long said ECS was planning on bringing on board new vendors and building a wider services portfolio, which some industry commentators say is guiding the firm onto a collision course with larger reseller customers.
"We are focused on several growth opportunities, including the addition of new suppliers, the penetration of new market segments, and the expansion of our services portfolio," said Long.
CFO Paul Reilly said ECS sales in Q4 are estimated to be "in line with the low end of normal seasonality" – between $2.2bn and $2.2bn – and the components unit is expected to be below historical norms due to the weak global economy at $3.29bn to $3.49bn.
"The outlook reflects selective targeted operating expense reductions across both businesses," he said. ®