Avnet Inc. has released its financial results for the fourth quarter ended June 30, 2018. Total revenues increased 9.8% to $5.06bn in the fourth quarter, compared with $4.56bn in the fourth quarter 2017. Operating income increased as well by 37% year-over-year to $127.9m compared with $93.4m. This was largely driven by the strict control over the operating expenses which resulted in an additional $37m of savings in the Q4 2018.
Fourth quarter total revenue for the Electronic Components segment totalled $4.67bn, an increase of 9.6% over the prior year. As a result, operating profit increased 5.3% year-over-year to $160.1m, primarily driven by its competitive pricing strategy and well as by its minimum order level quantities strategy.
In the Premier Farnell segment, the revenue totalled $391m, a 12.8% increase from the same period 2017. The operating profit increased 29.6% to $46m, mainly caused by the four additional suppliers that managed to cut down the operating expenses by over 20%, as well as by doubled online sales year-over-year.
Bill Amelio, Chief Executive Officer, Avnet commented “We can now guide our enterprise and startup customers alike from idea to product and product to market. We do this by reducing complexity and delivering solutions that get products to market quickly and cost effectively. Our ecosystem is foundational, and when coupled with our ongoing transformation initiatives, we see a very exciting road ahead.”
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