Arrow claims ECS business remained 'healthy' in Q2 despite supply chain issues

The distributor saw both component and enterprise solutions sales rise in Europe, while the latter stagnated in the Americas

Arrow claims its ECS business as remained healthy in Q2 despite supply chain issues.

At a group level, Arrow Electronics reported sales of $9.46bn, up ten per cent year on year.

The distributor's net income climbed 53 per cent to $370m compared with $241m in Q2 of 2021.

While changes in foreign currencies had negative impacts on growth of approximately $291m on sales and $0.17 on earnings per share on a diluted basis compared to the second quarter of 2021.

"We've continued to build and deliver on our record performance for the past several quarters. While market conditions are challenging, they also provide ample opportunities to demonstrate Arrow's commitment to the success of our customers and suppliers," said Arrow president and CEO, Sean Kerins.

"Thanks to the dedication and focused execution of our team, we delivered all-time record quarterly sales, gross profit, operating income, and earnings per share while in the face of ongoing supply and demand imbalance."

Kerins added that demand for electronic components and associated design, engineering and supply chain services remained strong.

He claimed that past investments to boost capabilities in engineering and supply chain have led to advancements in profit performance.

Global electronic components logged sales of $7.46bn for the quarter, an increase of 13 per cent.

Components sales in the Americas grew 26 per cent while European components sales rose 21 per cent year on year.

Enterprise computing services

Arrow claims its global enterprise computing solutions sales of $2bn reflected an increase of two per cent.

The segment grew seven per cent in Europe and remained flat in the Americas, with a decrease of one per cent year on year.

"Global demand for more complex, enterprise IT content was healthy, and while supply constraints represented a headwind to hardware sales, we saw strength in our software and cloud portfolios. We continue to see strength in cloud, software and enterprise solutions and are well positioned for the transition to IT-as-a-Service," said Kerins.