Avnet TS sales slide but operating income up
EMEA boosted by cutting costs and unprofitable business
Distribution Goliath Avnet Technology Solutions suffered a double-digit revenue slide across EMEA but boosted operating profits after cost-cutting and pursuing only margin-boosting biz in its fiscal Q3.
TS, the enterprise wing of Avnet Inc, saw global turnover for the quarter ended 31 March fall 8.1 per cent to $2.52bn, but operating income leapt more than 18 per cent to $67.9m.
Sales declined 7.3 per cent in the Americas to $1.37bn, and dropped 12.1 per cent in EMEA, but grew 4 per cent in Asia.
CEO Rick Hamada said the distie "continued the progress" of the last two fiscal quarters with improved margins and returns in EMEA and good execution on the other side of the Atlantic.
"In EMEA, our continuing focus on profitable growth and restructuring initiatives combined to drive operating income up 69 per cent," he said.
In late 2011 Avnet brought together its vendor Business Product Group businesses under the control of Miriam Murphy in a shake-up of the divisional structure.
Hamada said demand for data centre solutions and cloud services was continuing, and that Avnet had widened its services portfolio through the acquisitions of Canvas Systems and more recently Ascendant Technology.
Sales at Electronics Marketing – the electronics components distribution arm – fell 4.3 per cent to $3.75bn and operating profits dropped 13.5 per cent to $194.3m. ®