Arrow Q3 sales and profits soar

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Arrow Q3 sales and profits soar

Microscope contributor

The global components operation at distributor Arrow fuelled a 27% hike in third quarter sales as profits rebounded.

Revenues for the three months ended 2 October came in at $4.66bn (£2.9bn) while profits climbed to $118.5m (£75m), up from $12.6m in the same period a year ago which included restructuring and integration charges of $14.3m.

"The positive momentum we have seen in our businesses during the first half of the year has continued with another quarter of terrific performance," said Arrow CEO Michael Long.

The components arm grew sales globally by 35% to $3.44bn, the fifth consecutive quarter of better than normal seasonality, while gross and operating margins went up sequentially over the past year.

Growth in the enterprise computing solutions (ECS) unit grew more modestly at 8% to $1.22bn. "Storage, software, and industry-standard servers grew at very strong double-digits rates on a year-over-year basis," the CEO revealed.

Acquisitive Arrow made UK national Sphinx its umpteenth conquest earlier this year and Long claimed it had seen strong growth "in some of our newer initiatives including security and networking."

The sales forecast for the final quarter of 2010 is between $5bn and $5.4bn with the component business expected to turn in $3.32bn to $3.52bn and the ECS operation predicted to grow between $1.67bn and $1.87bn.


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