Arrow Electronics(ARW)2024-08-01 12:01Sales Performance - Second-quarter 2024 sales reached $6.9 billion, exceeding guidance, with a year-over-year decrease of 19%[1][3] - Sales for the quarter ended June 29, 2024, were $6,892,868, a decrease of 19.1% compared to $8,514,516 for the same quarter in 2023[23] - Consolidated sales for the quarter ended June 29, 2024, were $6,892,868, a decrease of 19.0% compared to $8,514,516 for the same period in 2023[32] - For the six months ended June 29, 2024, consolidated sales were $13,817,128, reflecting a 19.9% decrease from $17,250,944 in the same period of 2023[34] Income and Earnings - Net income attributable to shareholders for the second quarter was $109 million, down from $237 million in the same quarter last year[3] - Consolidated net income attributable to shareholders for the quarter was $108,698, a decrease of 54.0% compared to $236,559 in the prior year[23] - Basic net income per share for the quarter was $2.03, down from $4.17 in the same quarter last year[23] - The company anticipates a net income per share on a diluted basis of $1.70 to $1.90 for the third quarter[17] - The effective tax rate for the quarter was 21.4%, slightly lower than the 22.4% reported in the previous year[35] - The company reported a diluted net income per share of $2.01 for the quarter, down from $4.12 in the same quarter of 2023[35] Operating Performance - Gross profit for the quarter was $846,444, down 20.6% from $1,066,049 in the prior year[23] - Operating income decreased to $212,275, representing a decline of 46.0% from $392,250 in the same quarter last year[23] - Global components operating income for the quarter was $210,201, down from $381,314, a decline of about 44.8%[47] - Global ECS operating income increased to $102,581 from $86,228, marking a growth of approximately 18.9%[47] - Corporate operating loss for the quarter was $(100,507), compared to $(75,292) in the same quarter last year, indicating a worsening of approximately 33.5%[45] Sales by Segment - Global components sales in the second quarter were $5.0 billion, a 25% decrease year-over-year, with EMEA components down 33%[5] - Global components sales reported for the quarter were $5,032,031, down 24.7% from $6,682,882 year-over-year[32] - Americas components sales decreased by 23.9% to $1,572,840 from $2,066,562 in the prior year[32] - EMEA components sales saw a significant decline of 33.2%, falling to $1,439,494 from $2,153,479[32] - Global enterprise computing solutions (ECS) sales increased by 2% year-over-year to $1.9 billion, with EMEA ECS sales up 8%[8] - Global ECS sales for the quarter were $1,860,837, slightly up from $1,831,634 year-over-year, indicating a growth of about 1.2%[43] Cash Flow and Inventory - Cash flow from operations generated in the second quarter was $320 million, allowing for $50 million in share repurchases[9] - The company reduced inventory levels by approximately $140 million in the second quarter, totaling $1.2 billion over the last nine months[9] - Net cash provided by operating activities for the quarter was $320,181, compared to a net cash used of $(126,804) in the same quarter last year[27] Currency Impact - Changes in foreign currencies negatively impacted sales by approximately $52.2 million and earnings per share by $0.05 compared to the second quarter of 2023[3] Restructuring and Charges - The company incurred restructuring and integration charges of $40.5 million for the second quarter of 2024, compared to $10.3 million in the same quarter of 2023, indicating a significant increase in costs[45] - The company recorded charges of $1.6 million and $12.1 million in inventory write-downs related to the wind down of a business for the second quarter and first six months of 2024, respectively[43]