Avnet hails a 'record' financial year

Vallee: Avnet is continuing to invest in organic growth and a value creating M&A strategy

Avnet has reported a 10.4 per cent growth in revenue for its fourth quarter financials and hinted at further acquisitions.

Turnover hit $4.68bn for the quarter, with net profit increasing to $144.1m compared to a net profit of $124.7m in Q4 2007.

For the financial year 2008, the firm reported 'record revenues' of $17.95bn, an increase of 14.5 per cent on the $15.68 posted in 1997. Net profit was also a 'record' $499.1m, compared to $393.1m in 2007.

Roy Vallee, chief executive of Avnet, said: "We are pleased with our better than expected fourth quarter results. Excluding certain items, our sequential performance improved significantly with operating income growing roughly 12 per cent while return on capital employed improved by 113 basis points.

Vallee added: “In fiscal 2008, our focus on value-based management and value-creating M&A resulted in record financial results despite the challenging macro-economic forces impacting our markets. During fiscal year 2008, we completed seven acquisitions and in early fiscal 2009 we added three more to our portfolio that expanded our geographic coverage and enhanced our competitive position. This disciplined acquisition activity combined with a strong operating performance from our global team resulted in a slight improvement in return on capital and economic profit volume year over year.

"We decided to take some targeted corrective actions in the second half of fiscal 2008, but we are also continuing to invest in organic strategies and value-creating M&A that positions Avnet for stronger future growth while remaining committed to achieving our long-term financial goals.”