Avnet was in an upbeat mood after publishing a second consecutive set of promising numbers, which showed revenue and margin growth.
For the distributor's first fiscal quarter, which ran to 28 September, revenue was up 8.1 per cent annually to almost $6.35bn (£3.9bn). GAAP operating profit grew 79 per cent to $179m.
The components-centric Electronics Marketing (EM) business saw reported sales increase 7.8 per cent on the corresponding period last year to $3.9bn, while operating profit rose 17.9 per cent to $175.8m. The more value-focused Technology Solutions (TS) arm saw sales rise 8.6 per cent to $2.4bn, although revenue actually fell 3.3 per cent on an organic basis. Operating income surged 61.9 per cent to $62.6m.
Avnet's EMEA business posted a mixed performance during the quarter, as reported regional sales in the EM unit grew 14.5 per cent annually to almost $1.1bn, helping to offset a 6.8 per cent decline in the Americas region. But in the TS unit EMEA revenue dropped 10.5 per cent organically, although the reported top line was 9.3 per cent higher at $694.3m.
After a tricky 2013 fiscal year, the Q1 numbers mark the second quarter in a row in which the distribution titan has posted promising figures. Chief executive Rick Hamada outlined that the turnaround in the company's fortunes had prompted the decision to issue stockholders with a $21m dividend.
"Given our confidence in, and commitment to, long-term shareholder value creation, we believed it was an appropriate time to incorporate a more consistent element of returning cash to shareholders as part of our ongoing capital allocation priorities," he added. "With four consecutive quarters of seasonal growth and a strong balance sheet, we are positioned to build on this performance and continue progress toward our long-term goals."
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