Electronics distributor Avnet Inc. reported fiscal first quarter sales of $6.8 billion, an increase of 8 percent compared to the year ago quarter.
The company said its adjusted operating income increased 12 percent to $223.7 million and its adjusted operating income was 3 percent, up 13 basis points year over year. The distributor’s adjusted net income increased 14 percent to $144.2 million.
Avnet’s Electronics Marketing (EM) sales increased 11.1 percent year over year to $4.4 billion. The distributor’s Technology Solutions (TS) business increased revenue 2.4 percent to $2.46 billion, the company said.
"EM delivered another quarter of top-line growth that was at the high end of expectations and normal seasonality, while expanding margins and returns year over year,” said Avnet CEO Rick Hamada.
On a year-over-year basis, EM's organic revenue grew 7.8 percent led by the Asia region, which increased over 13.2%, Hamada said. Organic sales have been adjusted for the impact of acquisitions and divestitures. They include sales of acquired businesses and exclude the sales of divested businesses, Avnet said.
Hamada said that the Technology Solutions business was driven by the Americas region, which experienced “double-digit organic growth for the first time in three years.”
However, in Europe, the Middle East and Africa (EMEA),TS sales declined 5.8 percent in constant currency and revenue in Asia was below expectationsas sales declined 16.6 percent sequentially, said Hamada.
In the company’s second quarter, Avnet said that it expected Electronics Marketing sales to be in the range of $4.15 billion to $4.45 billion, while Technology Solutions sales would be between $2.85 billion and $3.15 billion. Avnet’s overall revenue in the second fiscal quarter is expected to be in the range of $7 billion and $7.6 billion, the distributor said.