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Avnet, Inc. reports first quarter fiscal year 2011 results: record sales; EPS more than doubles
Phoenix, 28 October 2010:
During the first quarter of fiscal year 2011, Avnet Inc. achieved its first $6 billion quarter and more than doubled earnings per share year over year. The company leveraged its scale and scope, along with a beneficial market, to grow 26.4% year over year organically, with return on capital employed (ROCE) at more than 14.8%. Avnet’s earnings increased by 111.4% to a record $0.93 adjusted diluted earnings per share in the first quarter of fiscal year 2011, compared to the same quarter in fiscal 2010.
Avnet completed four acquisitions – Bell Micro, Tallard Technologies, Unidux and Eurotone Electric Limited – during the first quarter of fiscal year 2011. These acquisitions should add approximately $4 billion to its annual revenue. The integration of Bell is proceeding as planned and the company is very comfortable with its enterprise-wide expense synergy target of $60 million related to Bell.
The Avnet Technology Solutions’ operating group revenue grew 33.6% year over year to $2.6 billion, and experienced better-than-normal sequential growth of 22.6%. Year over year growth at Avnet Technology Solutions was driven by storage, processors and networking products.
It appears that end demand in the markets Avnet Technology Solutions serves remains generally strong as businesses continue to invest in IT and other capital expenditures. Avnet Technology Solutions has a good pipeline of opportunities going into Avnet’s second quarter of fiscal year 2011 and expects to see normal seasonality.
Avnet Technology Solutions’ operations in the Americas saw strong year-over-year growth rates for the fourth consecutive quarter, with reported revenue growing 25.8% to reach $1.461 billion. Asia revenue increased by 48.7% to $292 million. Excluding the impact of foreign currency, Avnet Technology Solutions’ operations in the EMEA region revenue grew 55.9% year over year to reach $807.8 million.
For more details, see the press release attached or visit http://ir.avnet.com/.
