EMEA region shines in Arrow Q1 results
Arrow Electronics has reported first-quarter 2023 sales of $8.74 billion, a decrease of 4 per cent year over year, and a decrease of 2 per cent year over year on a constant currency basis. EMEA region sales climbed 16% to $2.24 billion.
First-quarter net income was $274 million compared with net income of $365 million in the first quarter of 2022.
“The company delivered solid first-quarter results with revenue and earnings per share beating the midpoint of our guidance,” said Sean Kerins (pictured), Arrow's president and chief executive officer. “Our dedicated team performed well in a challenging environment for both our suppliers and customers.”
Global components first-quarter sales of $6.86 billion reflected a decrease of 5 per cent year over year, and a decrease of 3 per cent year over year on a constant currency basis.
Asia-Pacific components first-quarter sales declined 19 percent year over year to $2.38 billion.
Americas components first-quarter sales decreased 5 percent year over year to $2.23 billion.
Europe components outperformed the other two regions comfortably. First-quarter sales jumped 17 per cent year over year to $2.24 billion.
Global components first-quarter operating income was $418 million.
“We are pleased with the overall performance of the global components business given the current market conditions, led by strength in the EMEA region. We were encouraged by the momentum of our design engagement in several of our markets,” commented Kerins.
Global enterprise computing solutions (ECS) first-quarter sales of $1.88 billion were flat year over year. Operating income was $81 million.
“Our ECS business continues to perform in line with the overall market for enterprise IT, with better momentum in Europe, and a softer backdrop in the Americas. Additionally, we’re pleased to see signs of an improving supply environment,” added Kerins.
“Enhancing shareholder value remains a top priority,” said Raj Agrawal, senior vice president and chief financial officer. “Our strong financial returns and the effective management of our balance sheet have enabled us to return cash to shareholders by repurchasing $300 million of shares during the first quarter. Returning cash to shareholders through our stock repurchase plan remains one of our priorities. As of the end of the first quarter, our remaining repurchase authorization stands at approximately $1 billion.”