Avnet, Inc. Reports Second Quarter Fiscal Year 2013 Results

Avnet, Inc. (NYSE:AVT) today announced results for the second quarter fiscal year 2013 ended December 29, 2012.

Q2 Fiscal 2013 Results
      SECOND QUARTERS ENDED
                   
December 29, December 31,
2012 2011 Change
$ in millions, except for per share data
Sales $ 6,699.5 $ 6,693.6 0.1 %
 
GAAP Operating Income 195.6 230.9 -15.3 %

Adjusted Operating Income (1)
220.5 265.4 -16.9 %
 
GAAP Net Income 137.5 147.0 -6.5 %

Adjusted Net Income (1)
140.0 172.0 -18.6 %
 
 
GAAP Diluted EPS $ 0.99 $ 0.98 1.0 %

Adjusted Diluted EPS (1)
$ 1.01 $ 1.15 -12.2 %
 
   

(1)
 

A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the Non-GAAP Financial Information section in this press release.
 
  • Sales for the quarter ended December 29, 2012 were essentially flat year over year at $6.70 billion; pro forma revenue declined 5.7% year over year and 4.8% in constant currency
  • Adjusted operating income of $220.5 million declined 16.9% year over year and adjusted operating income margin of 3.3% declined 67 basis points; sequentially, adjusted operating income and operating income margin were up 60.5% and 95 basis points, respectively
  • Adjusted diluted earnings per share of $1.01 declined 12.2% year over year, but increased 71.2% sequentially driven by significant profit growth in the Technology Solutions (TS) segment

Rick Hamada, Chief Executive Officer, commented, “Our overall Q2 results reflect a stronger than expected performance despite some continuing concerns on the longer term macroeconomic environment. Our team was able to leverage our recent resource alignment activities along with a few bright spots in technology spending into significant sequential improvements in EPS, margins and returns. In the December quarter, sequential growth returned to seasonal trends after below seasonal growth over the past two quarters as revenue exceeded expectations at both operating groups. Driven by stronger than expected calendar year end spending on IT infrastructure at TS and accelerating growth in our Asia components business, revenue grew over 14% sequentially in reported dollars while pro forma revenue was up 9% in constant dollars. Combined with the cost reductions implemented, this top line growth resulted in sequential adjusted operating income growing four times faster than revenue and adjusted operating income margin increasing 95 basis points to 3.3%. While our performance this quarter attests to the leverage in our model, our served markets continue to reflect an uneven recovery as questions around global growth trends persist. In this environment, we will continue to react quickly to changes in market conditions and apply our value based management discipline across the portfolio to drive continued progress toward our long-term goals.”

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