MELVILLE, N.Y. – Arrow Electronics, Inc. has reported fourth quarter 2006 net income of $128.1 million on sales of $3.49 billion (all figures U.S.), compared with net income of $74.4 million on sales of $2.96 billion in the fourth quarter of 2005.
Consolidated sales grew 18 per cent over the fourth quarter of 2005, or 8 per cent on a pro forma basis including the impact of acquisitions.
The distributor also said net income for 2006 was $388.3 million ($3.19 and $3.16 per share on a basic and diluted basis, respectively) on sales of $13.58 billion, compared with net income of $253.6 million ($2.15 and $2.09 per share on a basic and diluted basis, respectively) on sales of $11.16 billion for 2005.
“We ended an exceptional year with another very strong quarter, again posting impressive financial results and industry-leading levels of profitability,” said William Mitchell, the company’s chairman, president and chief executive officer. “Sales and operating income grew to their highest fourth quarter levels since 2000. Outstanding working capital management drove operating cash flow of $288 million with return on invested capital greater than our cost of capital for the 12th consecutive quarter.”
Paul Reilly, senior vice-president and CFO said that “based upon the information known to us today, we believe that sales in the first quarter (of 2007) will be between $3.525 and $3.725 billion.
“In our worldwide components business we expect continued strength in our small and medium sized customer base while our large customers continue to work down their inventory positions, resulting in worldwide components sales between $2.775 and $2.875 billion. We anticipate traditional seasonality in our computer products business to be offset, in part, by the impact of the Alternative Technology, Inc. and InTechnology plc acquisitions, resulting in worldwide computer products sales between $750 and $850 million. Earnings per share, on a diluted basis, are expected to be in the range of $.72 to $.76. This represents an increase of 6 to 12 per cent year-over-year.”
