Distributor Avnet TS saw improving profitability where operating income margin grew 42 basis points from a year ago as it reported full year figures. TS achieved this margin expansion despite a negative impact from both currency and the significant decline for the computing components business, it says. At a product level, year-over-year growth in networking & security and servers was offset by declines in storage and computing components.
As a result of these factors, TS revenue declined 9.2% year over year in the June quarter even though the sales in the enterprise IT business was consistent with the prior year in constant currency. For the full fiscal year, TS revenue declined 3.4% but was flat on a constant currency basis as growth in our datacentre solutions business in western regions was offset by a double digit decline in our computing component business.
At a regional level, the Americas region grew 2.3% in fiscal 2015 while EMEA declined 1.4% in constant currency and TS Asia was down 13.6%. A significant highlight for TS in fiscal 2015 was the continued progress in enterprise IT business at TS EMEA, “where growth in constant currency and disciplined expense management combined to drive TS EMEA’s operating income margin up 55 basis points for the full fiscal year”, it says. As a result of this performance, TS’ operating income margin improved to 3.1% in both the fourth quarter and full fiscal year.
Total sales for both groups (TS and EM) was just under $28bn, up 1.5% yr/yr, 5.4%in constant currency.