Arrow sales fall on weak components, enterprise computing market

components at Arrow
Arrow Electronics saw its third quarter sales and earnings fall on weakness in the components and enterprise computing solutions market. (Arrow Electronics)

Global electronics distributor Arrow Electronics reported third-quarter 2019 sales of $7.08 billion, down 6% from $7.49 billion in the third quarter of 2018. Third-quarter net income was $92 million, or $1.10 per diluted share, down from $177 million, or $1.99 per diluted share, in the year-ago third quarter. In the third quarter, changes in foreign currencies negatively impacted growth by $103 million or 1% on sales and 4 cents or 2% on earnings per share on a diluted basis compared to the third quarter of 2018.

Arrow reported that third-quarter global components sales of $5.05 billion decreased 6% year over year. Asia-Pacific components sales increased 4% year over year, while Europe components sales decreased 7% year over year. Americas components sales fell 16% year-over year. Global components third-quarter operating income was $172 million.

“Arrow’s focused execution contributed to our bottom-line performance in the third quarter, despite continued challenging demand conditions in the Americas and Europe,” said Michael J. Long, chairman, president, and chief executive office, in a statement. “By harnessing our internal efficiencies, we were able to realize significant savings to reinvest in our omnichannel engineering services, and strengthen our position as a consistent, reliable provider of design, engineering and supply chain solutions.”

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Global enterprise computing solutions third-quarter sales of $2.03 billion fell 4% year over year. Europe enterprise computing solutions sales decreased 6% year over year. Americas enterprise computing solutions sales decreased 3% year over year. Global enterprise computing solutions third-quarter operating income was $92 million.

“We are pleased that enterprise computing solutions’ execution in the marketplace drove 12% operating income growth in the third quarter. Operating income growth demonstrates our success in selling advanced, higher-value solutions utilizing next-generation software and hardware architectures,” added Long.

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