DOW JONES NEWSWIRES
Arrow Electronics Inc. (ARW) said it will revise its
fourth-quarter results to include a $1.02 billion goodwill
write-down that reflects the woes afflicting companies throughout
the electronics industry.
The company's operations include providing products and services
to the semiconductor industry, which has reported tumbling demand
in recent months as consumers pare back purchase of all types of
electronics.
The write-downs, which entail $716.9 million at Arrow's
components business and $301.9 million at its enterprise computing
solutions unit, total $7.49 a share. The company is also recording
an 8-cent investment loss.
Arrow earlier this month posted a 62% drop in net income to
$43.2 million, or 36 cents a share. The woes are expected to
continue for some time, with Chairman and Chief Executive William
E. Mitchell saying at the time the marketplace is expected to
"continue to be unsettled" through 2009. The company's
first-quarter forecast was below analysts' expectations.
Arrow's woes add further evidence that the downturn for chip
companies is getting worse. Chip distributors sit between chip
makers and product manufacturers in the global technology supply
chain. They buy chips wholesale and then sell them to smaller
customers that integrate them into hardware and tech products. The
majority of semiconductors are sold to computer and electronics
makers through distributors like Arrow.
Shares were recently down 12 cents at $17.57. The stock is down
by half over the past six months.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com