WASHINGTON (dpa-AFX) - Arrow Electronics Inc. (ARW) Monday reported a lower profit for the second quarter, as global components sales declined due to the weak economic scenario in the US, Europe and Asia. A stronger dollar also negatively impacted sales for the quarter, with both earnings and sales falling short of analysts' expectations.
Chief Executive Michael Long said, 'In a challenging macroeconomic environment that weakened throughout the quarter, we executed well, with sales and earnings per share in line with our expectations. Although the macro environment continues to be challenging, we remain committed to selectively investing in line with our strategic priorities to drive organic growth and strengthen the business.'
Arrow Electronics' second-quarter sales dropped to $5.15 billion from $5.54 billion last year. Analysts on a consensus estimated revenues of $5.17 billion for the quarter.
Global enterprise computing solutions second-quarter improved 2 percent year-over-year, driven by strong performance in Europe and Americas.
However, global components sales for the second quarter dropped 11 percent from last year, as Asia Pacific declined 6 percent, Americas fell 4 percent and Europe slipped 14 percent.
The Englewood, Colorado-based company's profit decreased to $114.4 million or $1.02 per share from last year's $156.2 million or $1.33 per share. Adjusted earnings dropped to $1.11 per share from $1.36 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.
Looking ahead, the company expects third-quarter earnings in a range of $1.00 to $1.12 per share. Sales is anticipated in a range of $4.8 billion to $5.2 billion, with Global components sales of $3.3 billion to $3.5 billion and global enterprise computing solutions sales of $1.5 billion to $1.7 billion.
Analysts currently expect earnings of $1.12 per share on revenues of $5.10 billion for the third quarter.
ARW is currently trading on the NYSE at $34.37, down $0.50 or 1.43%.
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