Arrow Electronics’ Asia-Pacific components sales increased 29 per cent year over year
Arrow Electronics, Inc. reported third-quarter 2020 sales of $7.23 billion. The figures represent an increase of two percent from sales of $7.08 billion in the third quarter of 2019. Third-quarter net income was $166 million, or $2.13 per share on a diluted basis, compared with a net income of $92 million, or $1.10 per share on a diluted basis, in the third quarter of 2019. Non-GAAP net income was $162 million, or $2.08 per share on a diluted basis, in the third quarter of 2020, compared with non-GAAP net income of $155 million, or $1.86 per share on a diluted basis, in the third quarter of 2019.
“Our strong financial performance this quarter is a testament to the strength of our business model,” said Michael J. Long, chairman, president, and chief executive officer.
He added, “Arrow is a trusted provider of critical technology solutions, and we believe strong demand for the products and solutions we provide will endure and increase beyond the COVID-19 pandemic. Customers and suppliers are choosing to do more business with Arrow because of our growing engineering, design, supply chain management and hybrid cloud solution capabilities. The hard work of our talented team and their unwavering focus on providing customers with the products and solutions they need, when they need them, has allowed us to capitalize on opportunities leading to financial performance that was above our expectations.”
Asia-Pacific components sales increased 29 percent year over year
Arrow Electronics’ global components third-quarter sales of $5.31 billion increased five percent year over year. Asia-Pacific components sales increased 29 per cent year over year. Americas components sales decreased 13 per cent year over year. Non-GAAP sales in the region decreased 10 per cent year over year. Europe components sales decreased eight per cent year over year.
“Robust third-quarter global components sales demonstrate the vital role we play in the supply chains of manufacturing customers around the world. Sales were above the high-end of our expectations driven by tremendous growth in Asia, where our business has doubled in size over the last five years due to our consistent investments in the region to support innovation and invention,” added Long.
The company estimates consolidated sales of $7.45 billion to $8.05 billion, with global components sales of $5.1 billion to $5.4 billion, and global enterprise computing solutions sales of $2.35 billion to $2.65 billion during the 4Q 2020.
“Third-quarter cash flow from operations was $275 million, driven by disciplined working capital management and healthy profitability from our leading positions in the markets we serve. As always, we remain committed to returning excess cash to shareholders. During the third quarter, we returned approximately $150 million to shareholders through our stock repurchase program, ending the quarter with approximately $563 million of remaining authorization under our share repurchase program. Our balance sheet and liquidity position remain strong, and we are pleased to report that return on invested capital increased year over year for the second straight quarter,” noted Chris Stansbury, senior vice president and chief financial officer, Arrow Electronics.