Avnet TS hits right notes in results swan song

Distributor hits high end of its guidance for sales and profits as Tech Data acquisition looms

Avnet Technology Solutions has recorded better than expected sales and profits in what could be its final quarterly results in the Avnet stable.

The distribution powerhouse, whose acquisition by rival Tech Data is set to close before 30 June 2017, recorded revenues of $2.45bn (£1.95bn) in its fiscal Q2 ending 31 December 2016.

That was on the high side of its previous guidance of between $2.25bn and $2.55bn, but down 10 per cent year on year.

Operating income of $103.2m was also towards the top of its guidance of between $95m and $105m, but a nine per cent shrinkage year on year.

Q2 marks the first quarter Avnet has displayed Technology Solutions' results as a discontinued operation, having agreed to sell the business to Tech Data on 19 September for around $2.6bn in one of the biggest unions the sector has ever seen.

Avnet's remaining Electronics Marketing business, which specialises in electronics components, saw revenues rise three per cent to $4.27bn during the quarter.

Avnet said it will use $1.5bn of the proceeds of the Technology Solutions sale to cut its floating-rate debt.