Arrow Electronics Posts Record Quarterly Results; Implements North American Realignment.MELVILLE, N.Y.--(BUSINESS WIRE)--Feb. 24, 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 record quarterly results in the three months ended December December: see month. 31, 1997. Net income for the quarter was $52.3 million or $.54 per share ($.53 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 $48 million or $.48 per share ($.47 per share on a diluted basis) on sales of $1.6 billion in the fourth quarter of 1996. The company noted that all per share amounts have been adjusted to reflect a two-for-one stock split in the form of a 100% stock dividend paid on October October: see month. 15, 1997. "Arrow's fourth quarter performance showed significant improvement over 1996's level," said Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and P. Kaufman, Chairman and Chief Executive Officer, "as we again posted sales and earnings gains 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. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , and the Asia/Pacific region.
After adjusting for acquisitions, sales increased 16% and our improved
operating efficiencies enabled us to offset the continued pressure on
gross profit margins Gross profit marginGross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. in the marketplace," he added. Immediately following year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. the company successfully implemented the previously-announced 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, redefining the way Arrow does business with its customers and suppliers. The seven operating groups within the realigned organization provide the industry's broadest line card, simplified Arrow contact, enhanced demand creation, and superior logistics and management information systems. "We accomplished this major task within a period of weeks -- forming new business units and reassigning to them over 3,000 employees, reviewing and reassigning over 160,000 customer records, and converting approximately 2 million sales orders The sales order, sometimes abbreviated as SO, is an order received by a business from a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. and over 11 million customer quotations -- and were able to introduce our new organization to customers and suppliers at the beginning of January," said Mr. Kaufman. "We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by the enthusiastic support this strategic initiative has received from employees, customers, and suppliers alike," he added. Net income for the year, before the third quarter's special charges associated with the North American realignment and the integration of the volume electronic component 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 earlier in the year, was $204.1 million or $2.08 per share ($2.05 per share on a diluted basis) on sales of $7.8 billion, compared with net income of $202.7 million or $2.01 per share ($1.98 per share on a diluted basis) on sales of $6.5 billion in 1996. Net income for the year, after the special charges of $59.5 ($40.4 million after taxes), was $163.7 million or $1.67 per share ($1.64 per share on a diluted basis). "The worldwide market for electronic components this past year mirrored 1996," said Mr. Kaufman, "as supplier output exceeded demand, resulting in lower average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. and reduced gross profit margins. At the same time, earnings per share were penalized pe·nal·ize tr.v. pe·nal·ized, pe·nal·iz·ing, pe·nal·iz·es 1. To subject to a penalty, especially for infringement of a law or official regulation. See Synonyms at punish. 2. by $.07 as a result of weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. currencies. Despite this
difficult business environment, our sales grew at a healthy rate and we
were able to improve operating performance."
The company also announced that its Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of an additional $50 million of the company's common stock. Over the past two years, Arrow has acquired approximately 7.3 million shares of its common stock at a cost of $200 million. 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 to industrial and commercial customers.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
--------------------- ---------------------
1997 1996(A) 1997(B) 1996(A)
---- ---- ---- ----
Sales $2,110,474 $1,632,229 $7,763,945 $6,534,577
---------- ---------- ---------- ----------
Costs and expenses:
Cost of products sold 1,791,441 1,381,346 6,574,415 5,492,556
Selling, general and
administrative
expenses 192,671 149,820 712,213 604,412
Depreciation and
amortization 10,967 9,374 43,096 36,982
Integration charge - - 21,600 -
Realignment charge - - 37,900 -
---------- ---------- ---------- ----------
1,995,079 1,540,540 7,389,224 6,133,950
---------- ---------- ---------- ----------
Operating income 115,395 91,689 374,721 400,627
Equity in earnings (loss)
of affiliated companies (225) 322 781 (97)
Interest expense 18,924 7,996 67,117 37,959
---------- ---------- ---------- ----------
Earnings before income
taxes and minority
interest 96,246 84,015 308,385 362,571
Provision for income taxes 39,461 34,076 131,617 144,667
---------- ---------- ---------- ----------
Earnings before minority
interest 56,785 49,939 176,768 217,904
Minority interest 4,484 1,891 13,112 15,195
---------- ---------- ---------- ----------
Net income $ 52,301 $ 48,048 $ 163,656 $ 202,709
========== ========== ========== ==========
Net income per share:
Basic $0.54 $0.48 $1.67 $2.01
===== ===== ===== =====
Diluted $0.53 $0.47 $1.64 $1.98
===== ===== ===== =====
Average number of common
shares outstanding:
Basic 97,140 100,214 98,006 100,972
====== ======= ======= =======
Diluted 98,948 101,762 99,769 102,380
====== ======= ======= =======
(A) Net income per common share and the average number of common
shares outstanding have been restated to reflect a two-for-one
stock split effective to shareholders of record on October 3,
1997.
(B) Excluding the integration and realignment charges, net income was
$204.1 million or $2.08 per share ($2.05 per share on a diluted
basis) for the year ended December 31, 1997.
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, December 31,
1997 1996
------------ ------------
Assets
Current assets:
Cash and short-term investments $ 112,665 $ 136,400
Accounts receivable, net 1,245,354 902,878
Inventories 1,230,053 1,044,841
Other 42,268 36,004
---------- ----------
Total current assets 2,630,340 2,120,123
Property, plant and equipment, net 114,237 115,225
Investment in affiliated company 54,914 34,200
Cost in excess of net assets of
companies acquired, net of amortization 645,152 388,787
Other assets 93,230 52,016
---------- ----------
$3,537,873 $2,710,351
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 767,088 $ 594,474
Accrued expenses 285,673 180,129
Short-term borrowings, including
current maturities of long-term debt 143,723 71,504
---------- ----------
Total current liabilities 1,196,484 846,107
Long-term debt 823,099 344,562
Minority interest 70,278 92,712
Other 87,254 68,488
Shareholders' equity 1,360,758 1,358,482
---------- ----------
$3,537,873 $2,710,351
========== ==========
CONTACT: Robert E. Klatell Executive Vice President 516/391-1300 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion