Avnet posts Q2 rise in sales and profits

Avnet recorded a double digit rise in sales and profits for its fiscal second quarter fuelled by a rise in tech spending and acquisitions. For the period ended 1 January, sales at the distributor jumped 40% (23% organically) to $6.76bn (£4.23bn) and income ramped 35.8% to $141m (£88.2m)

Avnet recorded a double digit rise in sales and profits for its fiscal second quarter fuelled by a rise in tech spending and acquisitions.

For the period ended 1 January, sales at the distributor jumped 40% (23% organically) to $6.76bn (£4.23bn) and income ramped 35.8% to $141m (£88.2m).

"The December quarter capped an excellent calendar year as we continued to leverage the technology driven economic recovery," said Avnet CEO Roy Vallee.

Sales in the Electronics Marketing division went up 41.4% on a year ago to $3.5bn but fell quarter-on-quarter "slightly below normal seasonality".

"The technology supply chain seems to be effectively adjusting supply, backlogs and inventories as product lead times approach more normal levels," said Vallee. 

The Technology Solutions business arm, which completed the acquisition of Bell Microproducts in July, saw sales shoot up 38.5% to $3.21bn, 4.9% organically and 25% sequentially.

This represented the fifth consecutive quarter of year-on-year revenue growth, "although the rate of organic growth slowed in comparison to the previous four quarters of strong double digit growth", said Vallee.

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