Arrow profits quiver as Q1 sales misfire
Biz reshuffle and components blamed for income dip
Arrow Electronics' Q1 profits have been derailed by restructuring charges and weaker than expected sales of components in Europe and Asia.
The enterprise distie giant reported a bottom line of just $113.6m (£70.1m), down 16.6 per cent compared to the same quarter a year ago, on the back of sales of $4.9bn (£3.02bn), a drop of 6.1 per cent.
Restructuring, integration and other charges totalled $8.2m, the distributor confirmed. Despite this, the perennially positive CEO Michael Long said the numbers were "in line with expectations".
The Enterprise Computing Solutions (ECS) global unit saw sales rise 15 per cent to $1.54bn. Long said ECS revenues were above normal seasonality driven by storage, software and services - each up by 20 per cent in the quarter.
The global components unit dropped the ball as sales fell 14 per cent to $3.35bn.
"Weaker macroeconomic conditions is Asia and Europe have had a negative impact on our results," said Arrow's chief, commenting on the unit. ®