Avnet’s 3Q sales rise 13 percent

Industrial Distribution staff -- Industrial Distribution, 4/24/2008 9:12:00 AM

Avnet Inc. posted third-quarter sales of $4.42 billion, a 13.3 percent increase over $3.9 billion during the same period last year.

Quarterly net income for the Phoenix-based electrical components distributor rose 1.9 percent to $107.2 million, compared with $105.2 million during the third quarter of fiscal 2007.

“We are extremely disappointed with our earnings for the third quarter as both operating groups were below our profit forecast. Our electronics marketing group managed to slightly improve its margins and generated higher returns despite lower-than-expected sales. However, revenue weakness in some business units at technology solutions resulted in lower gross profit volume, which was further exacerbated by lower gross margins due primarily to the impact of rebates. This combination led to some unacceptable operating margin performances and, as a result, we have begun to take targeted corrective actions. We remain steadfastly committed to achieving our long-term margin and return goals,” chairman and CEO Roy Vallee said.

Avnet said it expects sales to increase up to 12 percent for the fourth quarter, to as much as $4.75 billion.

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