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On Jan. 22, 2009,
reported that its Q2 FY09 earnings declined 21.0%, hurt by weak demand and decline in other income. Net income for the latest second quarter decreased to $112.29 million or $0.75 per share from $142.21 million or $0.93 per share. Excluding one-time items, net income stood at $94.95 million or $0.63 per share, down from $135.89 million or $0.89 per share in Q2 FY08. Latest quarterly earnings missed the consensus estimate of $0.66 per share.
Revenue declined 10.2% to $4.27 billion, while excluding the impact of foreign currency exchange rates revenue decreased 6.4%. On a pro forma basis, revenue was down 14.9% over the prior year's second quarter. Segment-wise, Electronics Marketing (EM) revenue dropped 8.5% to $2.27 billion, whereas Technology Solutions (TS) sales slumped 12.0% to $2.00 billion. Geographically, EM sales in the Americas, EMEA and Asia regions decreased 6.9%, 13.0%, and 5.6%, respectively. TS sales in Americas, EMEA and Asia were down 12.5%, 8.1%, and 26.2%, respectively.
During the quarter under review, Avnet entered into a joint venture agreement with
Sanko Holding Group
in Turkey to acquire a 50.01% interest of the joint venture, which will include the operations of
Akora Technology and Industry Corporation
. The company also entered into an agreement to acquire
Nippon Denso Industry Co. Ltd.
of Japan through its subsidiary, Avnet Japan Co. Ltd. Recently, AVT acquired
Abacus Group Plc
(Abacus) through its wholly-owned subsidiary, Electron House (Overseas) Limited.
Looking ahead to Q3 FY09, Avnet Inc. expects less than normal seasonality and anticipates consolidated earnings to be in the range of $0.45 per share to $0.53 per share on revenue between $3.60 billion to $4.20 billion. EM sales are anticipated to be in the range of $2.15 billion to $2.45 billion, while sales for TS are projected to be between $1.45 billion and $1.75 billion.
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