Avnet has announced plans to lop a further $40m (£25.9m) off its cost base to counter margin erosion in north America and western Europe.
The latest round of cuts, which are set to be completed by the end of Avnet's fiscal year in June, come on top of $100m in annualised cost reductions the distributor has already announced this year.
Avnet reported flat sales for its fiscal third quarter to 31 March, although at $6.30bn the total was 4.8 per cent behind last year's on a pro forma basis. Adjusted net profit fell 17.3 per cent to $125.4m.
Avnet Technology Solutions saw revenue fall 8.4 per cent on a pro forma basis to $2.502bn, with the EMEA region down 15 per cent.
Avnet chief executive Rick Hamada said a 65-basis-point fall in operating margins was strongly influenced by the fact that organic revenue fell in its higher-margin western regions.
"As a result, we are continuing to drive actions for margin improvement including new annualised cost reductions of approximately $40m that are expected to be completed by the end of our fourth fiscal quarter," he said.
"While these cost reductions are designed to contribute to improving our operating income margins, the rate of improvement will depend on market trends going forward."
Hamada added: "Our team delivered both top and bottom-line results that met our expectations and were generally in line with normal seasonal patterns while we continue to navigate through an ongoing uneven economic recovery."
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