Arrow Electronics, Inc. Reports Third Quarter Results Ahead of Expections.MELVILLE, NY--(BUSINESS WIRE)--Oct. 26, 1998--Arrow Electronics, Inc. (NYSE NYSE See: New York Stock Exchange :ARW ARW Air Refueling Wing ARW Advanced Research Workshop ARW Associated Resume Writers ARW Army Ranger Wing (Irish Special Forces) ARW American Revolutionary War ARW Angle Random Walk ARW Aeroelastic Research Wing ) reported sales gains of more than 9 percent in the three months and nine months ended September September: see month. 30, 1998. Net income for the quarter was $35.6 million or $.37 per share ($.37 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis) on sales of $2.1 billion, compared with net income of $9.3 million or $.10 per share ($.09 per share on a diluted basis) on sales of $1.9 billion in the third quarter of 1997. The company noted that its 1997 results included special charges associated with the strategic realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. components operations and the integration of the volume electronic components distribution businesses of Premier Farnell  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . plc acquired in early 1997. Exclusive of these special charges, net income in 1997 was $49.7 million or $.51 per share ($.50 per share on a diluted basis). "Sales of our Gates/Arrow subsidiary in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. increased 62 percent in the quarter -- 25 percent after eliminating the impact of acquisitions -- to an all-time high of $525 million and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased to a record 2.8 percent of sales," said Stephen P. Kaufman, Chairman and Chief Executive Officer of Arrow. "This exceptional performance, coupled with the lowest expense ratio in our history, offset the combined impact of the ongoing cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. affecting the electronics industry around the world and Europe's traditional extended summer holidays," he added, "enabling Arrow to generate earnings per share equal to the level of the immediately preceding quarter." Net income for the nine months ended September 30, 1998 was $113.5 million or $1.18 per share ($1.16 per share on a diluted basis) on sales of $6.2 billion, compared with net income of $111.4 million or $1.13 per share ($1.11 per share on a diluted basis) on sales of $5.7 billion in 1997. Excluding the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. special charges, net income was $151.8 million or $1.54 per share ($1.51 per share on a diluted basis). The company also said that it had agreed to sell $250 million of 6.45% Senior Notes due 2003 to a group of insurance companies. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the sale of the Senior Notes will be used to fund a portion of the purchase price for the acquisition by Arrow of Richey Electronics, Inc. and the Electronics Distribution Group of Bell Industries, Inc. The acquisitions, which were announced October 1, 1998, are expected to close around year-end. Prior to the closings, the proceeds of the sale of Senior Notes will be used to repay existing indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of the company. Arrow Electronics Arrow Electronics NYSE: ARW is a Fortune 500 company headquartered in Melville, New York. This company specializes in products and services of electronic components and computer products. is the world's largest distributor of electronic components and computer products, with 1997 sales of $7.8 billion. Headquartered in Melville, New York Melville is a hamlet and census-designated place in the town of Huntington in Suffolk County on Long Island, New York, in the United States. As of the 2000 census, 14,533 people resided there. , Arrow serves as a supply channel partner for more than 600 suppliers and 160,000 original equipment manufacturers and commercial customers through more than 200 sales facilities and 26 distribution centers in 32 countries. Detailed information about Arrow's operations can be found at www.arrow.com. -0-
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- ---------------------
1998 1997(A) 1998 1997(A)
---- ------- ---- -------
Sales $2,134,769 $1,949,396 $6,184,495 $5,653,471
---------- ---------- ---------- ----------
Costs and expenses:
Cost of products sold 1,849,487 1,657,850 5,313,003 4,782,974
Selling, general and
administrative
expenses 185,756 173,784 567,669 519,542
Depreciation and
amortization 13,238 11,295 37,644 32,129
Integration charge - 21,600 - 21,600
Realignment charge - 37,900 - 37,900
---------- ---------- ---------- ----------
2,048,481 1,902,429 5,918,316 5,394,145
---------- ---------- ---------- ----------
Operating income 86,288 46,967 266,179 259,326
Equity in earnings
of affiliated
companies 319 474 431 1,006
Interest expense 20,728 18,145 59,739 48,193
---------- ---------- ---------- ----------
Earnings before income
taxes and minority
interest 65,879 29,296 206,871 212,139
Provision for
income taxes 2983
Minority interest 2,318 2========== ========== ==========
==========
$ .37 $ .09 $1.16 $1.11
===== ===== ===== =====
Average number of shares
outstanding:
Basic ent charges, net income
and net income per share on a basic and diluted basis were
$49,717,000, $.51 (In thousands)
September 30, December 31,
1998 ventories
1,325,417 1,230,053
Other of amortization 712,902
645,152
Other assets 93,699 93,230
---------- ----------
$3,835,358 $3,537,873
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 845,363 $ 767,088
Accrued expenses 275,104 285,673
Short-term borrowings, including
current maturities of long-term debt 163,120 143,723
---------- ----------
Total current liabilities 1,283,587 1,196,484
Long-term debt 930,478 823,099
Minority interest 71,515 70,278
Other 88,665 87,254
Shareholders' equity 1,461,113 1,360,758
---------- ----------
$3,835,358 $3,537,873
========== ==========
This interim report is subject to independent audit at year-end. |
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