Avnet closes solid FY14 with growth quarter

Components boom sees distributor increase top and bottom line in Q4

A booming components business saw Avnet close a robust 2014 fiscal year with more top- and bottom-line growth in Q4.

For the three months to 28 June the distribution titan saw total sales increase 6.9 per cent year on year to $7.05bn, with GAAP operating income shooting up 25.6 per cent to $204.5m. Avnet's components-focused Electronics Marketing division saw Q4 revenue spike 8.8 per cent annually - including 8.1 per cent organic growth - to $4.3bn.

The broadliner's value-centric Technology Solutions posted quarterly sales of $2.7n, equating to a more modest 4.2 per cent rise on the corresponding period last year. Organic growth came in at just 0.3 per cent.

For the full year Avnet grew turnover eight per cent to $27.5bn, with GAAP operating profit growing more than a quarter to $789.9m. Chief executive Rick Hamada predicted that his firm will go from strength to strength next year.

"During the year, we... invested in growth initiatives by strengthening our embedded systems capabilities at EM with the acquisition of MSC Technologies and expanding our datacentre solution capabilities by incorporating new technologies, services and partners to our TS offerings," he said.

"We also modified our capital allocation priorities to incorporate a more consistent element of return to shareholders with the initiation of a dividend. As we enter fiscal 2015, we are poised to build on this performance and drive further improvements in both margins and returns as we continue to execute on our profitable growth initiatives across our portfolio."