Arrow Electronics(ARW)2025-02-06 13:01Financial Performance - Fourth-quarter consolidated sales were $7.283 billion, a decrease of 7% year over year, while full-year sales decreased 16% to $27.923 billion[3][4] - Fourth-quarter net income attributable to shareholders was $99 million, with a diluted earnings per share of $1.86, down from $195 million and $3.54 in the same quarter last year[3][4] - Non-GAAP net income for the fourth quarter was $158 million, resulting in a non-GAAP diluted earnings per share of $2.97, compared to $219 million and $3.98 in Q4 2023[3][4] - Consolidated net income for the year was $393,507, representing a 56.7% decrease from $909,363 in 2023[22] - For the year ended December 31, 2024, consolidated net income attributable to shareholders was $567,857,000, a decrease from $976,603,000 in 2023, representing a decline of approximately 42%[38] - Net income per diluted share for the year ended December 31, 2024, was $10.56, a decrease from $17.12 in 2023, reflecting a decline of approximately 38%[38] Sales Performance - Global components sales in Q4 2024 were $4.814 billion, a 15% decrease year over year, while full-year sales were $19.983 billion, down 21% from 2023[6][4] - Global enterprise computing solutions (ECS) sales increased 12% year over year in Q4 2024, reaching $2.469 billion, with full-year sales of $7.940 billion, up 3% from 2023[7][4] - Sales for the quarter ended December 31, 2024, were $7,282,877, a decrease of 7.2% compared to $7,849,157 for the same period in 2023[22] - For the year ended December 31, 2024, consolidated sales were $27,923,324, a decline of 15.7% from $33,107,120 in 2023[34] - Global components sales for Q4 2024 were $4,813,760, down 14.6% from $5,636,032 in Q4 2023[32] - EMEA ECS sales increased by 22.4% in Q4 2024 to $1,306,890, compared to $1,067,371 in Q4 2023[32] Income and Profitability - Gross profit for the year ended December 31, 2024, was $3,292,408, down 20.7% from $4,149,018 in 2023[22] - Operating income for the quarter decreased to $195,103, a decline of 38.3% from $316,679 in the prior year[22] - Operating income for the year ended December 31, 2024, was $768,557,000, down from $1,471,164,000 in 2023, indicating a decrease of about 48%[38] - Global components non-GAAP operating income for the year ended December 31, 2024, was $827,142,000, compared to $1,485,666,000 in 2023, a decrease of approximately 44%[46] - The gross profit margin for global components as reported was 10.3% for the year ended December 31, 2024, down from 12.5% in 2023[46] Cash Flow and Investments - The company generated over $1.1 billion in cash flow from operations in 2024 and reduced inventory by $1.1 billion compared to prior peak levels[8] - Net cash provided by operating activities for the quarter was $326,464, an increase from $286,742 in the same quarter of 2023[26] - The company reported a net cash used for investing activities of $41,416, compared to $25,510 in the prior year[26] Future Outlook - For Q1 2025, the company expects consolidated sales between $5.98 billion and $6.58 billion, with global components sales projected at $4.35 billion to $4.75 billion[11] - The impact of foreign currency changes is expected to decrease Q1 2025 sales by approximately $138 million and earnings per share by $0.13 compared to Q1 2024[11] - The average tax rate for Q1 2025 is anticipated to be in the range of 23% to 25%[11] Taxation - The effective tax rate for Q4 2024 was 22.4%, slightly higher than the 21.5% reported in Q4 2023[36] - The effective tax rate for the year ended December 31, 2024, was 19.6%, compared to 21.9% in 2023, reflecting a slight improvement[38] Shareholder Returns - The company returned $250 million to shareholders through stock repurchases during 2024[8]