Avnet Increases Sales 68 Percent in Third Quarter
Avnet Inc. (Phoenix, AZ) reported results for its third quarter and first nine months ending March 31, 2000, including a 68-percent increase in sales. Sales for the third quarter of fiscal 2000 were a record $2.69 billion, in comparison to the third quarter results of 1999 at $1.60 billion. The sales figures for 2000 also show a 28-percent improvement from the second quarter results of $2.10 billion. Net income, excluding special charges, was $50.2 million, or $1.13 per share on a diluted basis, in comparison to the third quarter results of 1999 at $25.7 million, or $0.73 per share on a diluted basis.Included in the company's current year third quarter results are $14.8 million pre-tax-$13.3 million included in operating expenses and $1.5 million included in cost of sales-and $8.9 million after-tax, or $0.20 per share on a diluted basis, of special charges. These special charges are associated with the integration of the recently acquired SEI Eurotronics and Macro operations into Avnet's Electronics Marketing (EM) EMEA business ($10.1 million pre-tax ), the integration of JBA Computer Solutions into Avnet's Computer Marketing North American business ($3.1 million pre-tax), and the consolidation of EM's European warehousing operations ($1.6 million pre-tax).For the first nine months of fiscal 2000, Avnet reported net income of $109 million, excluding special charges, or $2.70 per share on a diluted basis. This compares with the first nine month results of 1999 at $83.7 million, excluding special charges, or $2.32 per share on a diluted basis. Sales for the first nine months of the current fiscal year were a record $6.44 billion, up 37 percent as compared with sales of $4.71 billion in the first nine months of last year."The robust conditions in the electronics components industry and the extremely successful integration of Marshall into our EM Americas' business were the key drivers to our improved results," said Roy Vallee, Avnet's chairman and CEO.