Avnet achieves $US6.6 billion in sales during Q3

Avnet achieves $US6.6 billion in sales during Q3

Avnet Technology Solutions business unit contributed $US2.7 billion in revenue in Q3, representing a 47 per cent jump on last year

Global distributor, Avnet, revealed it achieved $US6.6 billion in sales for the third quarter of 2011, ending April 2.

This represents a 40 per cent increase on the previous period last year, which generated $US4.7 billion.

Adjusted operating income increased 47 per cent to $US257 million.

In a statement, Avnet chairman and CEO, Roy Vallee, said revenue in the March quarter was much stronger than expected.

“This solid performance drove a fourth consecutive quarter of record adjusted EPS with return on capital employed (ROCE) within our target range of 14 per cent to 16 per cent, even as we are integrating our most recent significant investments in value creating M&A,” Vallee said. “As the technology markets continue to lead the economic recovery, we remain focused on driving performance across our portfolio of businesses and leveraging revenue growth into increased shareholder value and higher EPS.”

Avnet Technology Solutions business unit contributed $US2.7 billion in revenue in Q3, representing a 47 per cent jump on last year. Asia experienced 55 per cent increase in revenue to $US393.6 million. However, operating income margin dipped 58 basis points to 2.09 per cent.

Vallee said product revenue growth derived from server and storage sales.

The dip in operating income margin was put down to the impact of acquisitions, while the sequential decline of 119 basis points was worse due to product mix.

Cash flow generated from operations was $US188 million for the quarter, and $US121 million for the last four quarters.

Consolidated sales are forecast to reach between $US6.6 billion and $US7.30 billion.

“While its difficult to gauge the impact of the Japan earthquake and tsunami in our June quarter revenue, we continue to work closely with our suppliers to understand what products are most impacted and meet the needs of our supply chain customers,” Avnet said in a statement.

Restructuring, integration and other charges amounted to $US16.3 million pre-tax.

The Avnet Technology Solutions business made a swathe of acquisitions during the past couple of years including Vanda Group, Sunshine Joint Stock Company, PT Datamation, Servodata HP Division, Bell Micro Products, Tallard Technologies and most recently itX Group.

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Tags Avnetfinancial resultsavnet technology solutionsitX Group

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