Components supplier and channel distributor Arrow Electronics has reported a decrease for first-quarter 2020 group sales, but is banking on a better second half of the year.
Group sales were $6.38bn, a decrease of 11% year-on-year. First-quarter net income was $50m, or $0.61 per share on a diluted basis, a big drop from the net income of $141m, or $1.63 per share on a diluted basis, last time.
“Arrow maintains a firm commitment to our design, engineering, marketing and supply chain services, which play an essential role for our stakeholders as they navigate the unprecedented challenges associated with the Covid-19 pandemic,” said Michael Long (pictured), chairman, president and chief executive officer of Arrow Electronics. The global enterprise computing solutions (Arrow ECS) business saw total first-quarter sales of $1.83bn, which was a 7% year-over-year drop. Sales in Europe decreased 8%. Group ECS operating income was $42m.
“In connection with our shift from provisioning complex hybrid cloud solutions to rapidly enabling the massive migration to an at-home workforce, Arrow reported global enterprise computing solutions sales near the high-end of our prior expectations,” said Long.
Chris Stansbury, Arrow Electronics senior vice president and chief financial officer, said: “Looking ahead to the second half of the year, we anticipate a cautious, measured return to normal business activity, and Arrow is well positioned to continue benefiting from the robust cash flow our business generates.”
The company predicts global ECS sales of $1.675bn to $1.975bn for the second quarter.
