Arrow Electronics Sales Up 18%; Net Income Before Special Charges Up 23%.Business & Technology Editors MELVILLE, N.Y.--(BUSINESS WIRE)--April 26, 2001 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. , 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 net income of $77.4 million before special charges ($.74 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 $3.3 billion in the first quarter, compared with net income of $63.1 million ($.65 per share on a diluted basis) on sales of $2.8 billion in the prior year. Excluding the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of convertible debt issued during the quarter, earnings per share would have been $.76, modestly ahead of analysts' expectations. After giving effect to the previously-announced special charges of $9.4 million ($5.7 million after taxes) associated with the acquisition and integration of Wyle WYLE is a commercial television station in Florence, Alabama, broadcasting locally on channel 26 as an affiliate of Jewelry TV. Founded April 19, 1986, the station is owned by ETC Communications Inc. WYLE has been silent since February 8, 2007 due to financial difficulties. Electronics and the dilutive effect of the convertible debt, reported net income in the first quarter was $71.7 million or $.68 per share on a diluted basis. "Early in the first quarter, we experienced a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in our components business, primarily limited to our large telecom and networking customers 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. and the contract manufacturers that service them," said Francis Francis, French prince, duke of Alençon and Anjou Francis, 1554–84, French prince, duke of Alençon and Anjou; youngest son of King Henry II of France and Catherine de' Medici. M. Scricco, President and Chief Executive Officer of Arrow ARROW Australian Research Repositories Online to the World (Clayton, Vic, Australia) ARROW Active Resistance to the Roots of War ARROW Antiresonant Reflecting Optical Waveguide . "Late in the quarter, weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. economic conditions generally produced a more widespread slowdown
affecting a broader segment of our North American North Americannamed after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. customer base. Our operations in the Asia/Pacific region experienced a similar weakening during the quarter. In 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). , however, our businesses continued to
perform well."
"At this point, we, like so many others, do not have enough visibility to give explicit sales and earnings guidance for the second quarter or for the year," added Mr. Scricco. "I can say, however, that the weakness we saw at the end of the first quarter is continuing. At current run rates, second quarter unit volumes will be below first quarter levels, and, given our industry's well documented supply imbalances, gross margin erosion erosion (ĭrō`zhən), general term for the processes by which the surface of the earth is constantly being worn away. The principal agents are gravity, running water, near-shore waves, ice (mostly glaciers), and wind. can be expected."
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
Three Months Ended
March 31,
-----------------------------
2001(A) 2000
------- ----
Sales $3,275,747 $2,769,424
---------- ----------
Costs and expenses:
Cost of products sold 2,727,465 2,346,425
Selling, general and
administrative expenses 326,463 261,225
Depreciation and amortization 28,584 19,594
Integration charge 9,375 -
---------- ----------
3,091,887 2,627,244
Operating income 183,860 142,180
Equity in losses of
affiliated companies (396) (1,298)
Interest expense 65,907 30,579
---------- ----------
Earnings before income
taxes and minority interest 117,557 110,303
Provision for income taxes 45,847 46,327
---------- ----------
Earnings before minority interest 71,710 63,976
Minority interest 31 917
---------- ----------
Net income $ 71,679 $ 63,059
========== ==========
Net income per share:
Basic $.73 $.66
==== ====
Diluted $.68 $.65
==== ====
Average number of shares
outstanding:
Basic 97,888 95,387
======= ======
Diluted 107,491 96,922
======= ======
(A) Excluding the integration charge, net income and net income per
share on a basic and diluted basis were $77.4 million, $.79, and
$.74, respectively.
This interim report is subject to independent audit at year-end.
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, December 31,
2001 2000
---------- ---------------
Assets
Current assets:
Cash and short-term investments $ 67,176 $ 55,546
Accounts receivable, including
retained interest in securitized
receivables, net 2,046,477 2,635,595
Inventories 2,737,985 2,972,661
Other 61,345 100,408
---------- ----------
Total current assets 4,912,983 5,764,210
Property, plant and equipment, net 313,131 316,459
Investment in affiliated companies 48,562 35,885
Cost in excess of net assets of
companies acquired, net of
amortization 1,197,086 1,237,099
Other assets 341,078 250,888
---------- ----------
$6,812,840 $7,604,541
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,071,830 $1,567,631
Accrued expenses 490,496 473,984
Short-term borrowings, including
current maturities of
long-term debt 325,146 529,261
---------- ----------
Total current liabilities 1,887,472 2,570,876
Long-term debt 2,904,341 3,027,671
Other 88,454 92,246
Shareholders' equity 1,932,573 1,913,748
---------- ----------
$6,812,840 $7,604,541
This interim report is subject to independent audit at year-end.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
Three Months Ended
March 31,
---------------------------
2001 2000
---- ----
Sales:
Components $2,487,773 $2,033,214
Computer products 787,974 736,210
---------- ----------
Consolidated $3,275,747 $2,769,424
========== ==========
Operating income:
Components $ 215,044 $ 157,341
Computer products 7,926 9,324
Corporate (39,110) (24,485)
---------- ----------
Consolidated (A) $ 183,860 $ 142,180
========== ==========
(A) Excluding the integration charge of $9.4 million, operating
income was $193.2 million for the quarter ended March 31, 2001.
This interim report is subject to independent audit at year-end.
Arrow Electronics is the world's largest distributor of electronic components and computer products, with 2000 sales of $13 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 200,000 original equipment manufacturers, contract manufacturers, and commercial customers through more than 225 sales facilities and 23 distribution centers in 39 countries. Detailed information about Arrow's operations can be found at www.arrow.com. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . This press release contains forward-looking statements that are subject to certain risks and uncertainties which could cause actual results or facts to differ materially from such statements for a variety of reasons including, but are not limited to: industry conditions, changes in product supply, pricing, and customer demand, competition, other vagaries in the computer and electronic components markets, changes in relationships with key suppliers and the other risks described from time to time in the company's reports to the Securities and Exchange Commission (including the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. ). Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any forward-looking statements. |
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