Profit warning – Arrow's turn
Arrow Electronics, the world's biggest electronics components distie, is the latest tech firm to issue a profits warning.
The company says that Q3 sales will be approx. $2.2bn, 13 per cent down on Q3, and 35 per cent down on the same period last year. The company will record a net loss of between $.15 and $.20 per share. It says it will restate the value of holdings in certain Internet properties to reflect current business conditions.
With lower sales, Arrow's working capital requirements are also reduced - down by $450m in Q3. Net debt has been cut by $1.1bn this year. So that's good news.
Avnet, Arrow's arch-rival, announced a profits warning last week. ®