Arrow Electronics Announces Sales of $8.510 Million | distribution

Arrow Electronics reported second-quarter 2023 sales of $8.51 billion, which is down 10% year-over-year. Net income was $237 million, or $4.12 per share on a diluted basis, compared to $370 million, or $5.54 per share in the same quarter of 2022. Non-GAAP net income was $251 million, or $4.37 per diluted share, in the second quarter. Quarter 2023, compared to non-GAAP net income of $386 million, or $5.78 per share, in the second quarter of 2022.

“The company reported strong second quarter results amid a weaker semiconductor market and a mixed IT spending environment, which resulted in revenue and earnings per share within our guidance range,” said Arrow President and CEO Sean Kerns.

Promote solutions as a service

Global component sales of $6.68 billion reflected a 10% year-over-year decline. Component sales in Europe increased by 19% annually, while in Asia Pacific they decreased by 22% and in the Americas by 17%. Global components market operating income was $381 million and non-GAAP operating income was $388 million.

“While overall demand remained resilient, customer inventory levels rose in the quarter. Components results in the Americas were further impacted by declines due to inventory shortages, which we now believe are at a large normal scale. In Asia, we are seeing continued weak demand in China.” Kearns explains. “We are encouraged by the sequential inventory reduction, price stability and growth in design-related activities.”

Global Enterprise Computing Solutions (ECS) sales for the second quarter were 1.83 billion, down 8% from a year ago. Sales of business computing solutions in Europe fell 1% annually, while in the Americas they fell 14%. ECS Market operating income was $86 million and non-GAAP operating income was $87 million.

“We continue to see customers migrate to solutions as a service. Our ECS results reflect this trend, as we saw relative strength in cloud, software and services, and operating margin improvement year-over-year,” said Kerins.

Looking at the third quarter, Arrow estimates combined sales at $7.78 to $8.38 billion, with global component sales at $6 to $6.4 billion, and global business computing solutions sales at $1.78 to $1.98 billion.