Avnet reported higher sales across all regions in its fiscal second quarter, led by robust growth in Asia, even as profit declined from a year earlier.
The Phoenix-based technology distributor posted sales of $6.319 billion for the quarter ended Dec. 27, up from $5.663 billion a year earlier — an increase of 11.6%.
Net income fell to $61.7 million, or 75 cents per share, from $87.3 million, or 99 cents per share, in the same quarter last year. That represents a 29.3% decline in profit year after year.
For the first six months of its fiscal year, Avnet reported sales of $12.218 billion, up from $11.268 billion a year earlier, a gain of 8.4%. Profits for the six-month period declined to $113.5 million from $146.2 million, a decrease of 22.4%.
Sales increased across all major regions in the quarter:
- Asia rose 16.9% to $3.170 billion.
- Europe, Middle East, and Africa rose 8.3% to $1.714 billion.
- Americas rose 4.9% to $1.435 billion.
Asia accounted for half of the company’s total quarterly revenue.
Both of Avnet’s business segments posted growth. Sales in its electronic components unit increased 10.8% to $5.892 billion, while sales at Farnell, its online electronics and industrial products distributor, climbed 23.6% to $427.1 million.
CEO Phil Gallagher said the company continued to improve operations and inventory management during the quarter. Avnet generated $208 million in operating cash flow and reduced inventory levels by $126 million.
Looking ahead, the company said it expects third-quarter sales between $6.20 billion and $6.50 billion for the period ending March 28.
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