DOW JONES NEWSWIRES
Arrow Electronics Inc.'s (ARW) first-quarter net income tumbled
70% on weak demand as a prolonged slump hits the company's
semiconductor-sector customers.
The distributor of semiconductor products to computer and
electronics makers projected second-quarter results below analysts'
views. Arrow sees earnings of 26 cents to 38 cents a share on
revenue of $3.15 billion to $3.75 billion. Analysts' mean
estimates, as surveyed by Thomson Reuters, were earnings of 45
cents a share on revenue of $3.46 billion.
The chip industry has reported tumbling demand in recent months
as consumers spend less and product makers cut inventories.
Arrow reported net income of $26.7 million, or 22 cents a share,
down from $85.9 million, or 69 cents a share, a year earlier.
Excluding restructuring and other charges, earnings fell to 36
cents a share from 79 cents a share.
Revenue decreased 15% to $3.42 billion, but would have been down
18% excluding an acquisition.
The company last month projected earnings of 32 cents to 44
cents a share and revenue of $3 billion to $3.6 billion. Revenue
fell short of analysts' then-estimates.
Gross margin fell to 12.6% from 14.5%.
Shares closed at $21.34 Tuesday and were inactive premarket. The
stock is down roughly 40% in the past eight months, though it has
risen nearly 80% since hitting a six-year low in November.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com