Avnet wrapped up its fiscal year with strong decent cash flow, improving trends in Asia, and a return to growth at its Farnell business—offering some optimism after a year of weaker results.
The global electronics distributor reported fourth-quarter sales of $5.6 billion, flat compared to the same period last year.
Avnet’s profit margins also narrowed in the quarter. Despite that, the company said it surpassed the high end of its sales and profit guidance, fueled by strong demand in Asia.
“We executed well given the overall market environment,” said CEO Phil Gallagher. “We managed costs, improved working capital, and saw steady growth in Asia and a return to growth at Farnell.”
For the full year, Avnet posted revenue of $22.2 billion, down from $23.8 billion last year.
Still, the company generated $725 million in cash from its operations—up significantly from the prior year—and reduced inventory by more than $400 million. Avnet returned a total of $414 million to shareholders through stock buybacks and dividends.
Gallagher said Avnet is entering its new fiscal year encouraged by stronger demand signals overseas. “We are optimistic about the recovery,” he said.
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