Arrow Electronics to Post Record Quarterly Earnings; EPS To Be Above Published Estimates.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--June 26, 2000 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 ) announced that results for its June quarter will be well ahead of analysts' expectations. Continued strengthening of the components distribution markets is fueling sales growth, and it is expected that second quarter sales will reach a record $3 billion and that earnings are likely to exceed the prior quarter's record $.65 per share by approximately 25 percent. "From our vantage point, the recovery continues in full swing," said Stephen P. Kaufman, Chairman and Chief Executive Officer of Arrow. "All of our core components distribution businesses around the world are performing very well, and we're seeing the impact of lengthened lead times and higher average selling prices in our operating results. "Mr. Kaufman added that the company's computer products businesses seem to be stabilizing, with operating results showing early signs of returning to more normal levels. "Our sales will be up more than 35 percent over last year," said Francis M. Scricco, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Arrow, who is set to take the reigns as CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. on July 1, with Mr. Kaufman continuing as Chairman. "The investments that we've been making in recent years, coupled with this rapid sales growth and strengthening gross profit margins, are enabling us to realize significant operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. ," he added. Arrow Electronics is the world's largest distributor of electronic components and computer products, with 1999 sales of $9.3 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 175,000 original equipment manufacturers and commercial customers through more than 225 sales facilities and 19 distribution centers in 37 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. 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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