June 2012 Distribution Results from ECSN

31st July 2012
Posted By : ES Admin
Announcing the latest consolidated results of his electronic component distribution members Adam Fletcher, chairman of the Electronic Components Supply Network, reported improved Billings in June 2012 compared to the previous month but a decline against the same month 2011:
“Our afdec members reported that Bookings slowed in June ’12, which is quite usual as we enter the summer period and the holiday season beckons”, said Fletcher, “but they also reported increased inventory levels, suggesting that either customers are rescheduling back or they anticipate a Billings increase in July, which seems unlikely.” He went on to express concerns about his members’ debtor day returns: “Debtor days have crept up to 75, some 25% beyond the normal range and must now be squeezed back down to the norm of below 60 days”.

In filing their returns for June ’12 afdec members once again reported widely differing views on current and future activity in the supply network, with opinions varying according to their customers’ end market: “The consensus of ECSN’s afdec members points towards an improvement in the second half of the year,” Fletcher said, “but stronger demand may quickly deplete inventory, which in turn could reduce availability and precipitate an increase in lead-time.”

Total Monthly Billings (Net Sales Invoiced less Credits) in June ‘12 increased by 14% compared to previous month but declined by (20%) when compared to the same period in the previous year. The Book-to-Bill ratio declined by 18 points to 0.89:1, with overall Bookings declining by (3%) when compared to May ‘12 and by (23%) on the same period 2011. The Sales by Month “three month moving average” for all electronic components now predicts a flat or declining period. As in previous years June bucked the trend!

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