The sky-rocketing dollar masked a solid performance for the EMEA business of Avnet in the global distribution giant's third quarter.
Avnet is the latest in a long line of US-headquartered tech bellwethers whose results have been hammered because they report in dollars, a currency that has strengthened against the euro by more than a fifth over the last 12 months.
Although organic growth in Avnet's fiscal Q3 ending 31 March stood at seven per cent, as-reported revenues inched up just 0.8 per cent to $6.74bn (£4.45bn). Adjusted net profit was flat at $143.5m on an as-reported basis.
Despite seeing sales fall by 7.4 per cent to $717.2m on an as-reported basis, organic growth at Avnet's EMEA Technology Solutions business hit six per cent for the quarter.
On a global basis, Technology Solutions saw as-reported sales fall 1.3 per cent as the strong dollar and a double-digit decline in its computer components business offset encouraging demand for datacentre solutions, Avnet chief executive Hamada said.
"I believe our team has done a good job navigating the continuing environment of mixed signals among various business and economic indicators, including the significant strengthening of the US dollar during our March quarter," Hamada (pictured) opined.
Through the first nine months of Avnet's fiscal year, TS EMEA has grown operating profit by 22 per cent in constant currency, Hamada added.
"Even though this improvement is not evident in TS's global reported results due to the previously mentioned currency issues, the focus on profitable growth is having a positive impact as TS EMEA continues progress towards their long-range financial goals," he concluded.
Avnet's chief financial officer, Kevin Moriarty, judged it a "strong quarter" for Avnet TS EMEA, which he said has continued to make "steady portfolio and resource alignment progress" throughout the year.
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