Avnet has released its financial results for the fourth quarter ended June 29, 2019 (FY 2018). Total Q4 revenues were down 7.5% year-on-year to $4.7bn, compared with $5.06bn in the fourth quarter of 2018, in line with predicted low seasonality and other macroeconomic factors. Operating income declined by 75% year-on-year to $30m.
Together with its quarterly results, Avnet also released its FY2019 results, with sales totalling $19.5bn, up 2.5% year-on-year (2018: $19.04bn) and operating income, excluding expenses and costs, totalling $365.9m, up 75% year-on-year (2018: $209.2bn).
Total revenues for the Electronic Components segment amounted to $18.06bn, (2018: $17.54bn), up 3% year-on-year and operating income, including expenses and costs, totalled $614.9m, (2018: $587.3m), up 4.7% year-on-year. In the Farnell segment, revenues reached $1.46bn, (2018: $1.49bn), down 2% year-on-year, and operating income, including expenses and costs, amounted to $159.3m, (2018: $152m), up 4.8% year-on-year.
Avnet’s CEO Bill Amelio said: “We did see margin pressure that was greater than anticipated due to mix and the softening of customer demand, which were exacerbated by global trade tensions and associated tariffs. We remain committed to the multi-pronged strategy we laid out at our 2018 Investor Day, which regardless of market fluctuations, promises to deliver superior service, innovation and support to our customers, suppliers and partners, as well as enhance value for our shareholders long term.”
The company said that despite the foreseen challenges in Q4, it delivered revenues in line with its target and that cost reduction plans as well as investments in technologies such as IoT and the Farnell business segment, are amongst its future plans.
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