Arrow Electronics revenues fell 19% year on year in Q2 2024 to $6893 billion from $8515 billion.
The performance exceeded market expectations by 5.7% and Arrow President and CEO Sean Kerins (pictured) struck an optimistic note.
“Across many of the segments in which we compete, we’re seeing signs of incremental improvement in leading indicators, with book-to-bill ratios advancing across all regions and bookings growing sequentially. Though the automotive and broader industrial markets are still experiencing softness, we now believe we’re in the later stages of the industry’s cyclical correction,” said Kerins. “We continued to execute well in an evolving market environment, delivering second-quarter sales and non-GAAP earnings per diluted share comfortably ahead of our guided ranges.”
“Our value-added offerings in global components as well as better momentum in enterprise computing solutions contributed to our overall operating margin stability in the quarter,” added Kerins.
Global component sales fell 24.7% to $5.03 billion.
All three regions reported falling sales in Q2. The Americas declined 23.9% to $1.57 billion. While sales also declined sequentially, Arrow also reported strength in aerospace and defence and design win growth.
Asia/Pacific component sales dropped 18% to $2.02 billion. Semiconductor and IP&E revenue grew with relative strength in compute and industrial.
In EMEA, sales slid 33.2% to $1.44 billion. On the upside bookings grew, however industrial and transportation remained in decline.
CEO Kerins expects a stronger 2024 second half. He cited book-to-bill ratios advancing across all the operating regions and approaching parity, backlog stabilisation and a decline in cancellations.
Strong Cloud- and AI-solutions and server demand have contributed to overall results.
And the company feels it is well positioned for future growth cycles with supply chain services scaling next generation AI infrastructure, engineering and integration offerings deploying AI solutions and the Robotics Centre of Excellence designing future technology solutions.
