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Avnet fiscal Q2 sales boosted by economic uplift

Microscope contributor

A healthier global economy helped Avnet grow fiscal Q2 sales above the seasonal norm but favourable currency translations also lent a hand


Revenues for the three months ended 2 January went up 13.2% to $4.83bn or 10% when for-ex conversions were excluded, while profits of $162m compared to losses of $1.2bn a year ago when it was hit by goodwill impairment charges. 


"Avnet's strong growth this quarter provides further evidence that the global economy has begun the next growth cycle as sales at both operating groups came well in above normal seasonality," said Avnet CEO Roy Vallee.


The Technology Solutions division saw sales climb 15.8% to $2.32bn; EMEA sales went up 4.3% but excluding the effects of currency they fell 3.6%, the Americas and Asia both grew their top line. 


"Technology Solutions delivered strong calendar year-end results around the world as all three regions grew more than 30% sequentially," said Vallee. 


Electronics Marketing sales grew 11% to $2.52bn or 7.4% when excluding for-ex translations. Revenues in EMEA increased 11.8% or more modestly by 0.9% when adjusted for currency impacts. Asia increased 35% and the Americas dropped 8.6%.


"While Asia has been consistently stronger over the past couple of quarters, we are seeing indications that the industrial markets in the Americas and EMEA are returning to growth," said Avnet boss.


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