-- Sales of $6.9 billion, exceeding guidance
--
-- Second-Quarter Earnings Per Diluted Share
of $2.01; Non-GAAP Earnings Per Diluted Share of $2.78 --
Arrow Electronics, Inc. (NYSE:ARW) today announced financial
results for its second quarter of 2024.
“We continued to execute well in an evolving market environment,
delivering second-quarter sales and non-GAAP earnings per diluted
share comfortably ahead of our guided ranges,” said Sean Kerins,
Arrow’s president and chief executive officer.
“In addition, our value-added offerings in global components as
well as better momentum in enterprise computing solutions
contributed to our overall operating margin stability in the
quarter,” said Mr. Kerins.
Arrow Consolidated
Quarter Ended
Six Months Ended
June 29,
July 1,
June 29,
July 1,
(in millions except per share
data)
2024
2023
2024
2023
Consolidated sales
$
6,893
$
8,515
$
13,817
$
17,251
Net income attributable to
shareholders
109
237
192
510
Net income per diluted share
2.01
4.12
3.53
8.74
Non-GAAP net income attributable to
shareholders (1)
150
251
282
524
Non-GAAP net income per diluted share
2.78
4.37
5.18
8.98
Both GAAP and non-GAAP earnings per share in the second quarter
of 2024 include a $0.29 benefit and a $20 million operating income
benefit related to the collection of certain aged receivables
related to one customer in the ECS segment. In the second quarter
of 2024, sales decreased 19 percent year over year. Changes in
foreign currencies had a negative impact on growth of approximately
$52.2 million on sales and $0.05 on earnings per share on a diluted
basis compared to the second quarter of 2023.
Global Components
“Across many of the segments in which we compete, we’re seeing
signs of incremental improvement in leading indicators, with
book-to-bill ratios advancing across all regions and bookings
growing sequentially. Though the automotive and broader industrial
markets are still experiencing softness, we now believe we’re in
the later stages of the industry’s cyclical correction,” said Mr.
Kerins.
Global Components
Quarter Ended
Six Months Ended
June 29,
July 1,
June 29,
July 1,
(in millions)
2024
2023
2024
2023
Global components sales
$
5,032
$
6,683
$
10,223
$
13,539
Global components operating income, as
reported
210
381
436
799
Global components non-GAAP operating
income
218
388
461
812
In the second quarter of 2024, global components sales decreased
25 percent year over year. Americas components second-quarter sales
decreased 24 percent year over year. EMEA components second-quarter
sales decreased 33 percent year over year and decreased 32 percent
year over year on a constant currency basis. Asia-Pacific
components second-quarter sales decreased 18 percent year over year
and decreased 17 percent year over year on a constant currency
basis.
Global Enterprise Computing
Solutions
“Our enterprise computing solutions business delivered
year-over-year billings growth as we continued to capitalize on the
market’s transition to IT as a service. We benefited from another
solid quarter in EMEA along with improving activity levels in North
America,” said Mr. Kerins.
Global Enterprise Computing
Solutions (ECS)
Quarter Ended
Six Months Ended
June 29,
July 1,
June 29,
July 1,
(in millions)
2024
2023
2024
2023
Global ECS sales
$
1,861
$
1,832
$
3,594
$
3,712
Global ECS operating income, as
reported
103
86
174
167
Global ECS non-GAAP operating income
104
87
176
170
In the second quarter of 2024, global ECS sales increased 2
percent year over year. EMEA ECS second-quarter sales increased 8
percent year over year and increased 9 percent year over year on a
constant currency basis. Americas ECS second-quarter sales
decreased 4 percent year over year and decreased 3 percent year
over year on a constant currency basis.
Other Financial Metrics
“In the second quarter, we managed our working capital in line
with market conditions, reducing inventory levels by approximately
$140 million, or $1.2 billion over the last nine months,” said Raj
Agrawal, Arrow’s senior vice president and chief financial officer.
“We also generated $320 million in cash flow from operations,
providing us capital allocation flexibility, and enabling $50
million in share repurchases during the quarter.”
1 A reconciliation of non-GAAP financial measures to GAAP
financial measures is presented in the reconciliation tables
included herein.
Third-Quarter 2024
Outlook
- Consolidated sales of $6.37 billion to $6.97 billion, with
global components sales of $4.70 billion to $5.10 billion, and
global enterprise computing solutions sales of $1.67 billion to
$1.87 billion
- Net income per share on a diluted basis of $1.70 to $1.90, and
non-GAAP net income per share on a diluted basis of $2.10 to
$2.30
- Average tax rate in the range of 23 to 25 percent
- Interest expense of approximately $70 million
- Changes in foreign currencies to increase sales by
approximately $7 million, and to have no impact on earnings per
share on a diluted basis compared to the third quarter of 2023
- Changes in foreign currencies to increase quarter-over-quarter
growth in sales by $30 million and earnings per share on a diluted
basis by $0.02 compared to the second quarter of 2024
Third-Quarter 2024 GAAP to
non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
Quarter Ended
Quarter Ended
September 28,
September 30,
September 28,
June 29,
(in billions)
2024
2023
% Change
2024
2024
% Change
Global components sales, GAAP
$
4.70 - 5.10
$
6.25
(25%) - (18%)
$
4.70 - 5.10
$
5.03
(7%) - 1%
Impact of changes in foreign
currencies
—
—
—
0.02
Global components sales, constant
currency
$
4.70 - 5.10
$
6.25
(25%) - (18%)
$
4.70 - 5.10
$
5.05
(7%) - 1%
Global ECS sales, GAAP
$
1.67 - 1.87
$
1.76
(5%) - 6%
$
1.67 - 1.87
$
1.86
(10%) - 0%
Impact of changes in foreign
currencies
—
0.01
—
0.01
Global ECS sales, constant currency
$
1.67 - 1.87
$
1.77
(6%) - 6%
$
1.67 - 1.87
$
1.87
(11%) - 0%
NON-GAAP EARNINGS
RECONCILIATION
Intangible amortization
Restructuring &
Reported GAAP measure
expense
integration charges
Non-GAAP measure
Net income per diluted share
$1.70 to $1.90
$0.10
$0.30
$2.10 to $2.30
Earnings Presentation
Please refer to the earnings presentation, which can be found at
investor.arrow.com, as a supplement to the company’s earnings
release. The company uses its website as a tool to disclose
important information about the company and to comply with its
disclosure obligations under Regulation Fair Disclosure.
Webcast and Conference Call
Information
Arrow Electronics will host a conference call to discuss
second-quarter 2024 financial results on August 1, 2024, at 1:00 PM
ET.
A live webcast of the conference call will be available via the
events section of investor.arrow.com or by accessing the webcast
link directly at https://events.q4inc.com/attendee/244342075.
Shortly after the conclusion of the conference call, a webcast
replay will be available on the Arrow website for one year.
About Arrow Electronics
Arrow Electronics guides innovation forward for thousands of
leading technology manufacturers and service providers. With 2023
sales of $33 billion, Arrow develops technology solutions that help
improve business and daily life. Learn more at arrow.com.
Information Relating to Forward-Looking
Statements
This press release includes “forward-looking” statements, as the
term is defined under the federal securities laws, including but
not limited to statements regarding: Arrow’s future financial
performance, including its outlook on financial results for the
third quarter of fiscal 2024 such as sales, net income per diluted
share, non-GAAP net income per diluted share, average tax rate,
interest and other expense, impact to sales due to changes in
foreign currencies, intangible amortization expense per diluted
share, restructuring & integration charges per diluted share,
and expectations regarding market demand and conditions and
shareholder returns. These and other forward-looking statements are
subject to numerous assumptions, risks, and uncertainties, which
could cause actual results or facts to differ materially from such
statements for a variety of reasons, including, but not limited to:
unfavorable economic conditions; disruptions or inefficiencies in
the supply chain; political instability and changes; impacts of
military conflict and sanctions; industry conditions; changes in
product supply, pricing and customer demand; competition; other
vagaries in the global components and the global ECS markets;
deteriorating economic conditions, including economic recession,
inflation, tax rates, foreign currency exchange rates, or the
availability of capital; the effects of natural or man-made
catastrophic events; changes in relationships with key suppliers;
increased profit margin pressure; changes in legal and regulatory
matters; non-compliance with certain regulations, such as export,
antitrust, and anti-corruption laws; foreign tax and other loss
contingencies; breaches of security or privacy of business
information and information system failures, including related to
current or future implementations, integrations and upgrades;
outbreaks, epidemics, pandemics, or public health crises; and the
company's ability to generate positive cash flow. For a further
discussion of these and other factors that could cause the
company's future results to differ materially from any
forward-looking statements, see the section entitled “Risk Factors”
in the company's most recent Quarterly Report on Form 10-Q and the
company's most recent Annual Report on Form 10-K, as well as in
other filings the company makes with the Securities and Exchange
Commission. Shareholders and other readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. The company
undertakes no obligation to update publicly or revise any of the
forward-looking statements.
Certain Non-GAAP Financial
Information
In addition to disclosing financial results that are determined
in accordance with accounting principles generally accepted in the
United States (“GAAP”), the company also provides certain non-GAAP
financial information. The company provides the following non-GAAP
metrics: sales, operating income (including by business segment),
income before income taxes, net income attributable to
shareholders, effective tax rate and net income per share on a
diluted basis. The foregoing non-GAAP measures are adjusted by
certain of the following, as applicable: impact of changes in
foreign currencies (referred to as “changes in foreign currencies”
or “on a constant currency basis”) by re-translating prior-period
results at current period foreign exchange rates; identifiable
intangible asset amortization, restructuring, integration, and
other charges; net gains and losses on investments; impact of wind
down to inventory; loss on extinguishment of debt; and impact of
tax legislation changes. Management believes that providing this
additional information is useful to the reader to better assess and
understand the company’s operating performance and future prospects
in the same manner as management, especially when comparing results
with previous periods. Management typically monitors the business
as adjusted for these items, in addition to GAAP results, to
understand and compare operating results across accounting periods,
for internal budgeting purposes, for short- and long-term operating
plans, and to evaluate the company's financial performance.
However, analysis of results on a non-GAAP basis should be used as
a complement to, in conjunction with, and not as a substitute for,
data presented in accordance with GAAP. For further discussion of
our non-GAAP measures and related adjustments, refer to the section
entitled “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the company's most
recent Quarterly Report on Form 10-Q and the company's most recent
Annual Report on Form 10-K.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands except per share
data)
(Unaudited)
Quarter Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Sales
$
6,892,868
$
8,514,516
$
13,817,128
$
17,250,944
Cost of sales
6,046,424
7,448,467
12,112,858
15,071,073
Gross profit
846,444
1,066,049
1,704,270
2,179,871
Operating expenses:
Selling, general, and administrative
552,595
617,202
1,135,921
1,259,633
Depreciation and amortization
41,037
46,264
82,764
92,943
Restructuring, integration, and other
40,537
10,333
87,393
12,893
634,169
673,799
1,306,078
1,365,469
Operating income
212,275
392,250
398,192
814,402
Equity in earnings of affiliated
companies
1,254
3,061
910
2,981
(Loss) gain on investments, net
(4,615
)
497
(4,517
)
10,808
Loss on extinguishment of debt
(1,657
)
—
(1,657
)
—
Employee benefit plan expense, net
(980
)
(803
)
(1,913
)
(1,656
)
Interest and other financing expense,
net
(66,891
)
(84,834
)
(146,495
)
(164,492
)
Income before income taxes
139,386
310,171
244,520
662,043
Provision for income taxes
29,762
72,380
51,798
148,927
Consolidated net income
109,624
237,791
192,722
513,116
Noncontrolling interests
926
1,232
423
2,807
Net income attributable to
shareholders
$
108,698
$
236,559
$
192,299
$
510,309
Net income per share:
Basic
$
2.03
$
4.17
$
3.56
$
8.84
Diluted
$
2.01
$
4.12
$
3.53
$
8.74
Weighted-average shares outstanding:
Basic
53,640
56,720
53,944
57,726
Diluted
54,181
57,355
54,496
58,409
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par
value)
(Unaudited)
June 29, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
213,009
$
218,053
Accounts receivable, net
10,886,501
12,238,073
Inventories
4,654,793
5,187,225
Other current assets
1,010,942
684,126
Total current assets
16,765,245
18,327,477
Property, plant, and equipment, at
cost:
Land
5,691
5,691
Buildings and improvements
190,109
195,579
Machinery and equipment
1,623,869
1,632,606
1,819,669
1,833,876
Less: Accumulated depreciation and
amortization
(1,319,945
)
(1,303,136
)
Property, plant, and equipment, net
499,724
530,740
Investments in affiliated companies
60,400
62,741
Intangible assets, net
112,470
127,440
Goodwill
2,052,701
2,050,426
Other assets
617,226
627,344
Total assets
$
20,107,766
$
21,726,168
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
8,770,862
$
10,070,015
Accrued expenses
1,687,273
1,463,915
Short-term borrowings, including current
portion of long-term debt
860,538
1,653,954
Total current liabilities
11,318,673
13,187,884
Long-term debt
2,479,313
2,153,553
Other liabilities
495,730
507,424
Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2024
and 2023
Issued - 58,046 and 57,691 shares in 2024
and 2023
58,046
57,691
Capital in excess of par value
574,530
553,340
Treasury stock (5,101 and 3,880 shares in
2024 and 2023, respectively), at cost
(456,123
)
(297,745
)
Retained earnings
5,982,516
5,790,217
Accumulated other comprehensive loss
(415,666
)
(298,039
)
Total shareholders’ equity
5,743,303
5,805,464
Noncontrolling interests
70,747
71,843
Total equity
5,814,050
5,877,307
Total liabilities and equity
$
20,107,766
$
21,726,168
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
Quarter Ended
June 29, 2024
July 1, 2023
Cash flows from operating activities:
Consolidated net income
$
109,624
$
237,791
Adjustments to reconcile consolidated net
income to net cash provided by (used for) operations:
Depreciation and amortization
41,037
46,264
Amortization of stock-based
compensation
8,253
8,852
Equity in earnings of affiliated
companies
(1,254
)
(3,061
)
Deferred income taxes
(4,597
)
(25,869
)
Loss on extinguishment of debt
1,657
—
Loss (gain) on investments, net
4,750
(497
)
Other
3,675
1,665
Change in assets and liabilities, net of
effects of acquired businesses:
Accounts receivable, net
155,886
(377,117
)
Inventories
130,661
58,148
Accounts payable
(160,026
)
(8,558
)
Accrued expenses
251,990
(83,267
)
Other assets and liabilities
(221,475
)
18,845
Net cash provided by (used for) operating
activities
320,181
(126,804
)
Cash flows from investing activities:
Acquisition of property, plant, and
equipment
(22,101
)
(16,991
)
Other
1,313
95
Net cash used for investing activities
(20,788
)
(16,896
)
Cash flows from financing activities:
Change in short-term and other
borrowings
(434,845
)
344,389
Proceeds from (repayments of) long-term
bank borrowings, net
196,575
(43,786
)
Net proceeds from note offering
494,678
(2,332
)
Redemption of notes
(500,000
)
—
Proceeds from exercise of stock
options
1,839
10,447
Repurchases of common stock
(75,353
)
(212,416
)
Settlement of forward-starting interest
rate swap
—
56,711
Other
(141
)
(142
)
Net cash (used for) provided by financing
activities
(317,247
)
152,871
Effect of exchange rate changes on
cash
(11,947
)
25,657
Net (decrease) increase in cash and cash
equivalents
(29,801
)
34,828
Cash and cash equivalents at beginning of
period
242,810
205,554
Cash and cash equivalents at end of
period
$
213,009
$
240,382
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 29, 2024
July 1, 2023
Cash flows from operating activities:
Consolidated net income
$
192,722
$
513,116
Adjustments to reconcile consolidated net
income to net cash provided by operations:
Depreciation and amortization
82,764
92,943
Amortization of stock-based
compensation
21,700
28,349
Equity in earnings of affiliated
companies
(910
)
(2,981
)
Deferred income taxes
(7,398
)
(33,399
)
Loss on extinguishment of debt
1,657
—
Loss (gain) on investments, net
4,763
(10,808
)
Other
4,864
2,986
Change in assets and liabilities, net of
effects of acquired businesses:
Accounts receivable, net
1,213,562
1,324,772
Inventories
493,474
(141,373
)
Accounts payable
(1,237,812
)
(1,513,259
)
Accrued expenses
273,043
(215,583
)
Other assets and liabilities
(319,038
)
52,237
Net cash provided by operating
activities
723,391
97,000
Cash flows from investing activities:
Acquisition of property, plant, and
equipment
(51,636
)
(37,105
)
Other
6,452
10,962
Net cash used for investing activities
(45,184
)
(26,143
)
Cash flows from financing activities:
Change in short-term and other
borrowings
(1,144,520
)
198,339
Proceeds from (repayments of) long-term
bank borrowings, net
673,607
(9,426
)
Net proceeds from note offering
494,678
496,268
Redemption of notes
(500,000
)
(300,000
)
Proceeds from exercise of stock
options
4,768
16,381
Repurchases of common stock
(163,301
)
(516,217
)
Settlement of forward-starting interest
rate swap
—
56,711
Other
(141
)
(142
)
Net cash used for financing activities
(634,909
)
(58,086
)
Effect of exchange rate changes on
cash
(48,342
)
50,696
Net (decrease) increase in cash and cash
equivalents
(5,044
)
63,467
Cash and cash equivalents at beginning of
period
218,053
176,915
Cash and cash equivalents at end of
period
$
213,009
$
240,382
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
June 29, 2024
July 1, 2023
% Change
Consolidated sales, as reported
$
6,892,868
$
8,514,516
(19.0
)
%
Impact of changes in foreign
currencies
—
(52,232
)
Consolidated sales, constant currency
$
6,892,868
$
8,462,284
(18.5
)
%
Global components sales, as reported
$
5,032,031
$
6,682,882
(24.7
)
%
Impact of changes in foreign
currencies
—
(44,642
)
Global components sales, constant
currency
$
5,032,031
$
6,638,240
(24.2
)
%
Americas components sales, as reported
$
1,572,840
$
2,066,562
(23.9
)
%
Impact of changes in foreign
currencies
—
(1,513
)
Americas components sales, constant
currency
$
1,572,840
$
2,065,049
(23.8
)
%
Asia components sales, as reported
$
2,019,697
$
2,462,841
(18.0
)
%
Impact of changes in foreign
currencies
—
(17,330
)
Asia components sales, constant
currency
$
2,019,697
$
2,445,511
(17.4
)
%
EMEA components sales, as reported
$
1,439,494
$
2,153,479
(33.2
)
%
Impact of changes in foreign
currencies
—
(25,799
)
EMEA components sales, constant
currency
$
1,439,494
$
2,127,680
(32.3
)
%
Global ECS sales, as reported
$
1,860,837
$
1,831,634
1.6
%
Impact of changes in foreign
currencies
—
(7,590
)
Global ECS sales, constant currency
$
1,860,837
$
1,824,044
2.0
%
Americas ECS sales, as reported
$
964,070
$
1,000,506
(3.6
)
%
Impact of changes in foreign
currencies
—
(1,709
)
Americas ECS sales, constant currency
$
964,070
$
998,797
(3.5
)
%
EMEA ECS sales, as reported
$
896,767
$
831,128
7.9
%
Impact of changes in foreign
currencies
—
(5,881
)
EMEA ECS sales, constant currency
$
896,767
$
825,247
8.7
%
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Six Months Ended
June 29, 2024
July 1, 2023
% Change
Consolidated sales, as reported
$
13,817,128
$
17,250,944
(19.9
)
%
Impact of changes in foreign
currencies
—
(42,862
)
Consolidated sales, constant currency
$
13,817,128
$
17,208,082
(19.7
)
%
Global components sales, as reported
$
10,223,448
$
13,538,675
(24.5
)
%
Impact of changes in foreign
currencies
—
(48,805
)
Global components sales, constant
currency
$
10,223,448
$
13,489,870
(24.2
)
%
Americas components sales, as reported
$
3,169,532
$
4,300,015
(26.3
)
%
Impact of changes in foreign
currencies
—
(2,185
)
Americas components sales, constant
currency
$
3,169,532
$
4,297,830
(26.3
)
%
Asia components sales, as reported
$
3,957,915
$
4,839,036
(18.2
)
%
Impact of changes in foreign
currencies
—
(41,966
)
Asia components sales, constant
currency
$
3,957,915
$
4,797,070
(17.5
)
%
EMEA components sales, as reported
$
3,096,001
$
4,399,624
(29.6
)
%
Impact of changes in foreign
currencies
—
(4,654
)
EMEA components sales, constant
currency
$
3,096,001
$
4,394,970
(29.6
)
%
Global ECS sales, as reported
$
3,593,680
$
3,712,269
(3.2
)
%
Impact of changes in foreign
currencies
—
5,943
Global ECS sales, constant currency
$
3,593,680
$
3,718,212
(3.3
)
%
Americas ECS sales, as reported
$
1,871,818
$
1,998,620
(6.3
)
%
Impact of changes in foreign
currencies
—
(2,539
)
Americas ECS sales, constant currency
$
1,871,818
$
1,996,081
(6.2
)
%
EMEA ECS sales, as reported
$
1,721,862
$
1,713,649
0.5
%
Impact of changes in foreign
currencies
—
8,482
EMEA ECS sales, constant currency
$
1,721,862
$
1,722,131
(0.0
)
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS
RECONCILIATION
(In thousands except per share
data)
(Unaudited)
Three months ended June 29,
2024
Reported
Intangible
Restructuring,
Impact of
Non
GAAP
amortization
Integration
Wind
recurring
Non-GAAP
measure
expense
and other
Down(1)
tax items
Other(2)
measure
Operating income
$
212,275
$
7,456
$
40,537
$
1,627
$
—
$
—
261,895
Income before income taxes
139,386
7,456
40,537
1,627
—
6,272
195,278
Net income attributable to
shareholders
$
108,698
$
5,457
$
30,323
$
1,238
$
—
$
4,766
$
150,482
Net income per diluted share (4)
$
2.01
$
0.10
$
0.56
$
0.02
$
—
$
0.09
$
2.78
Effective tax rate (5)
21.4
%
22.4
%
Three months ended July 1,
2023
Reported
Intangible
Restructuring,
Impact of
Non
GAAP
amortization
Integration
Wind
recurring
Non-GAAP
measure
expense
and other
Down(1)
tax items
Other(3)
measure
Operating income
$
392,250
$
7,908
$
10,333
$
—
$
—
$
—
$
410,491
Income before income taxes
310,171
7,908
10,333
—
—
(497
)
327,915
Net income attributable to
shareholders
$
236,559
$
5,780
$
7,736
$
—
$
942
$
(378
)
$
250,639
Net income per diluted share (4)
$
4.12
$
0.10
$
0.13
$
—
$
0.02
$
(0.01
)
$
4.37
Effective tax rate (5)
23.3
%
23.1
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS
RECONCILIATION
(In thousands except per share
data)
(Unaudited)
Six months ended June 29,
2024
Reported
Intangible
Restructuring,
Impact of
Non
GAAP
amortization
Integration
Wind
recurring
Non-GAAP
measure
expense
and other
Down(1)
tax items
Other(2)
measure
Operating income
$
398,192
$
15,002
$
87,393
$
12,086
$
—
$
—
$
512,673
Income before income taxes
244,520
15,002
87,393
12,086
—
6,174
365,175
Net income attributable to
shareholders
$
192,299
$
10,989
$
65,165
$
9,195
$
—
$
4,692
$
282,340
Net income per diluted share (4)
$
3.53
$
0.20
$
1.20
$
0.17
$
—
$
0.09
$
5.18
Effective tax rate (5)
21.2
%
22.5
%
Six months ended July 1, 2023
Reported
Intangible
Restructuring,
Impact of
Non
GAAP
amortization
Integration
Wind
recurring
Non-GAAP
measure
expense
and other
Down(1)
tax items
Other(3)
measure
Operating income
$
814,402
$
15,888
$
12,893
$
—
$
—
$
—
$
843,183
Income before income taxes
662,043
15,888
12,893
—
—
(10,808
)
680,016
Net income attributable to
shareholders
$
510,309
$
11,616
$
9,576
$
—
$
942
$
(8,218
)
$
524,225
Net income per diluted share (4)
$
8.74
$
0.20
$
0.16
$
—
$
0.02
$
(0.14
)
$
8.98
Effective tax rate (5)
22.5
%
22.5
%
(1)
Includes write downs of inventory related
to the wind down of a business.
(2)
Other includes loss (gain) on investments,
net and loss on extinguishment of debt.
(3)
Other includes loss (gain) on investments,
net.
(4)
The sum of the components for non-GAAP
diluted EPS, as adjusted may not agree to totals, as presented, due
to rounding.
(5)
The items as shown in this table,
represent the reconciling items for the tax rate as reported and as
a non-GAAP measure.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Quarter Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Sales:
Global components
$
5,032,031
$
6,682,882
$
10,223,448
$
13,538,675
Global ECS
1,860,837
1,831,634
3,593,680
3,712,269
Consolidated
$
6,892,868
$
8,514,516
$
13,817,128
$
17,250,944
Operating income (loss):
Global components (a)
$
210,201
$
381,314
$
435,763
$
798,853
Global ECS (b)
102,581
86,228
174,040
167,327
Corporate (c)
(100,507
)
(75,292
)
(211,611
)
(151,778
)
Consolidated
$
212,275
$
392,250
$
398,192
$
814,402
(a)
Global components operating income
includes 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.
(b)
Global ECS operating income includes a
$20.0 million benefit related to the reversal of an allowance for
credit losses due to the collection of certain aged receivables for
the second quarter and first six months of 2024.
(c)
Corporate operating (loss) includes
restructuring, integration, and other charges of $40.5 million and
$87.4 million for the second quarter and first six months of 2024,
respectively, and $10.3 million and $12.9 million for the second
quarter and first six months of 2023, respectively.
NON-GAAP SEGMENT
RECONCILIATION
Quarter Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Global components operating income, as
reported
$
210,201
$
381,314
$
435,763
$
798,853
Intangible assets amortization expense
6,399
6,679
12,887
13,424
Impact of wind down to inventory
1,627
—
12,086
—
Global components non-GAAP operating
income
$
218,227
$
387,993
$
460,736
$
812,277
Global ECS operating income, as
reported
$
102,581
$
86,228
$
174,040
$
167,327
Intangible assets amortization expense
1,057
1,229
2,115
2,464
Global ECS non-GAAP operating income
$
103,638
$
87,457
$
176,155
$
169,791
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801700914/en/
Investors: Brad Windbigler, Treasurer and Vice President,
Investor Relations 720-654-9893
Media: John Hourigan, Vice President, Public Affairs and
Corporate Marketing 303-824-4586
Grafico Azioni Arrow Electronics (NYSE:ARW)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Arrow Electronics (NYSE:ARW)
Storico
Da Nov 2023 a Nov 2024
