Avnet net income rises in 4th quarter on higher global demand for electronic parts

Wednesday, August 11, 2010

Avnet 4th-quarter profit jumps on rising demand

PHOENIX — Electronic parts and computer products distributor Avnet Inc. on Wednesday reported a better-than-expected fiscal fourth-quarter profit, helped by revenue growth across all regions.

Net income for the three months ended July 3 totaled $141.1 million, or 92 cents per share, compared with a loss of $30.9 million, or 20 cents per share, last year. Revenue rose 39 percent to $5.21 billion from $3.77 billion last year, with growth in all regions up by double-digit rates.

Analysts polled by Thomson Reuters, on average, predicted net income of 80 cents per share on revenue of $5.02 billion.

“The ‘V’ shaped cyclical recovery in the technology markets we serve continued this quarter with strong top line performance across both groups and all regions,” said CEO Roy Vallee in a statement. He added that bookings remained strong which would indicate that supply has still not caught up with demand throughout the industry.

For the fiscal year, net income totaled $410.4 million, or $2.68 per share, versus a loss of $1.13 billion, or $7.49 per share last year. Revenue rose 18 percent to $19.16 billion from $16.23 billion last year.

In the first quarter, the company expects net income of 76 cents to 84 cents per share on revenue of $5.6 billion to $6.2 billion. On average, analysts are expecting net income of 80 cents per share on revenue of $5.22 billion.

Shares fell 22 cents to $25.50 near midday.

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