PHOENIX--(BUSINESS WIRE)--
Avnet, Inc. (NYSE:AVT) reported today that its sales for the first
quarter of fiscal 2013 ended September 29, 2012 will be approximately
$5.85 billion, roughly 9% below the year-ago quarter and towards the
lower end of original expectations. Sales at Electronics Marketing (EM)
and Technology Solutions (TS) for the September quarter are expected to
be approximately $3.65 billion and $2.20 billion, respectively. The
Company also indicated that its diluted earnings per share, excluding
restructuring, integration and other charges, is expected to be between
$0.52 and $0.58, below its previously announced expectations.
The revised estimated earnings per share for the September 2012 quarter
is primarily attributable to the combined negative impacts of (1) lower
than expected revenues, most notably at TS, (2) lower gross profit
margin in the Western regions at EM associated with the weaker sales
environment and (3) a greater than anticipated geographic mix shift in
the EM business where better than expected sales in the lower-margin
Asia region were more than offset by weaker sales in the higher-margin
Western regions.
Rick Hamada, Chief Executive Officer, commented, "It appears the
uncertain macroeconomic conditions continue to negatively impact key
areas of end demand in our served markets as our overall revenue for the
quarter finished weaker than expected, particularly in the Americas
region. The shortfall to our expectations was more acute at our TS
business, where we experienced a second consecutive quarter of weaker
than expected transaction activity at the end of the quarter as
customers delayed IT projects. At EM, although overall sales were
relatively in line with initial expectations, the lower-margin Asia
business had a stronger than expected quarter, which was offset by a
pronounced slowdown in the Americas region. This overall shortfall in
Avnet's revenue accounted for more than half of the lowered earnings
expectations while the regional mix shift and lower gross profit margins
at EM accounted for the remainder. As a response to these developments,
we are evaluating resource commitments across the portfolio and have
identified further expense alignment actions in addition to the expense
reductions of $40 - $50 million that we announced in August. We remain
steadfastly committed to monitoring market developments and taking
actions consistent with the pursuit of our long-term operating goals."
No conference call will be held in conjunction with the release of these
preliminary financial estimates and the company will have no further
comment until its upcoming earnings call scheduled for Thursday, October
25, 2012. The Company's first quarter results could differ from the
preliminary estimates provided in this press release.
About Avnet
Avnet, Inc. (NYSE:AVT),
a Fortune 500 company, is one of the largest distributors of
electronic components, computer products and embedded technology serving
customers globally. Avnet accelerates its partners' success by
connecting the world's leading technology suppliers with a broad base of
customers by providing cost-effective, value-added services and
solutions. For the fiscal year ended June 30, 2012, Avnet generated
revenue of $25.7 billion. For more information, visit www.avnet.com.
(AVT_IR)
Forward-Looking Statements
This press release contains certain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements are based on management's current expectations and are
subject to uncertainty and changes in facts and circumstances. The
forward-looking statements herein include statements addressing future
financial and operating results of Avnet and may include words such as
"will," "anticipate," "expect," "believe," "intend," and "should," and
other words and terms of similar meaning in connection with any
discussions of future operating or financial performance or business
prospects. Actual results may vary materially from the expectations
contained in the forward-looking statements.
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: changes in actual or forecasted results of operations, the
Company's ability to retain and grow market share and to generate
additional cash flow, risks associated with any acquisition or
disposition activities, the successful integration of acquired
companies, any significant and unanticipated sales decline, changes in
business conditions and the economy in general, changes in market demand
and pricing pressures, any material changes in the allocation of product
or product rebates by suppliers, allocations of products by suppliers,
other competitive and/or regulatory factors affecting the businesses of
Avnet generally.
More detailed information about these and other factors is set forth in
Avnet's filings with the Securities and Exchange Commission, including
the Company's reports on Form 10-K, Form 10-Q and Form 8-K. Except as
required by law, Avnet is under no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Avnet, Inc.
Vince Keenan, 480-643-7053
VP, Investor Relations
investorrelations@avnet.com
Source: Avnet, Inc.
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