Company Issues Revised Guidance for Q4 2016
PHOENIX--(BUSINESS WIRE)--
Avnet, Inc. (NYSE: AVT), a leading global technology distributor,
announced today that William ("Bill") J. Amelio, a member of Avnet's
Board of Directors, has been named as interim Chief Executive Officer of
the company, effective immediately. Mr. Amelio brings more than 35 years
of management and industry experience to his new role having served in
senior positions at global publicly traded companies, and has spent most
of his career managing global technology enterprises. Mr. Amelio is
replacing Rick Hamada, who is stepping down from his position at the
company and on the Board of Directors.
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Mr. William J. Amelio (Photo: Business Wire)
William H. Schumann, Chairman of the Board said, "Bill's extensive
experience in international business operations, corporate leadership
and management will help steer the company toward success in a rapidly
changing industry. His proven expertise will be critical in accelerating
Avnet's growth, driving an enhanced execution focus and implementing
management systems to promote greater accountability."
"I look forward to working with the management team and all of Avnet's
talented employees worldwide as we strive to achieve profitable growth
for shareholders and operational excellence for customers while
enhancing the company's winning culture to the benefit of employees,"
said Mr. Amelio.
Mr. Amelio was the president, chief executive officer and a director of
CHC Group Ltd., an international oil-field services company, from 2010
to 2015. From 2005 to 2009, he served as president and chief executive
officer of Lenovo, a multinational Fortune 500 technology company, and
was previously a regional senior vice president and president,
Asia-Pacific and Japan for Dell Inc. He began his career with the
Microelectronics Technology Division of IBM in 1979 and later became the
General Manager Worldwide Operations of the Personal Computer Division.
Mr. Amelio also previously served on the Board of Directors of National
Semiconductor. He has a chemical engineering degree from Lehigh
University and a masters in management degree from Stanford University.
"On behalf of the Board, I want to thank Rick for his service and the
many important contributions he has made during his 32 years with
Avnet," continued Schumann. "We wish him the best in his future
endeavors."
Company revises guidance
The company also provided an updated outlook for its fourth fiscal
quarter ended July 2, 2016. Sales are currently expected to be in the
range of $6.15 billion to $6.25 billion, which is near the midpoint of
the company's previous sales guidance of $6.25 billion. However,
adjusted diluted earnings per share is expected to be in the range of
$0.80 to $0.86 compared to the previous guidance of $0.95 to $1.05. This
shortfall was impacted primarily by an ERP implementation in the
Americas region of the Electronics Marketing operating group. Sales for
the region are expected to be approximately $100 million less than the
prior outlook and the region also incurred higher costs in order to
maintain customer deliveries. While the impact to sales was minimal by
the end of the June quarter, some of the higher costs incurred are
expected to continue and will likely impact the first fiscal quarter
ended October 1, 2016. The company will provide additional details when
it reports its results for the fourth fiscal quarter in August 2016.
Forward-Looking Statements
This document 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," "intend," "estimate," "forecast," "expect,"
"feel," "believe," "should," and other words and terms of similar
meaning in connection with any discussions of future operating or
financial performance, business prospects or market conditions. Actual
results may differ 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: the Company's ability to retain and grow market share and to
generate additional cash flow, risks associated with any acquisition
activities and the successful integration of acquired companies, an
industry down-cycle in semiconductors, IT hardware or software products,
declines in sales, 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,
and 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.
About Avnet, Inc.
From components to cloud and design to disposal, Avnet, Inc. (NYSE:AVT)
accelerates the success of customers who build, sell and use technology
globally by providing them with a comprehensive portfolio of innovative
products, services and solutions. Avnet is a Fortune 500 company with
revenues of $27.9 billion for the fiscal year 2015. For more
information, visit www.avnet.com.
(AVT_IR)
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Avnet, Inc.
Media Relations Contact
Christine
Dotts, 480-643-8075
christine.dotts@avnet.com
or
Investor
Relations Contact
Vincent Keenan, 480-643-7053
vincent.keenan@avnet.com
Source: Avnet, Inc.
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