Arrow Electronics Reports Q1 Earnings
CENTENNIAL, Colo.–(BUSINESS WIRE)–Apr. 30, 2015– Arrow Electronics, Inc. (NYSE:ARW) today reported first-quarter 2015 net income of $106.1 million, or $1.09 per share on a diluted basis, compared with net income of $107.1 million, or $1.06 per share on a diluted basis, in the first quarter of 2014.
Excluding certain items1 in the first quarters of 2015 and 2014, net income would have been $127.8 million, or $1.32 per share on a diluted basis, in the first quarter of 2015, compared with net income of $124.0 million, or $1.22 per share on a diluted basis, in the first quarter of 2014. First-quarter sales, adjusted for the impact of acquisitions and changes in foreign currencies, increased 3 percent year over year. First-quarter sales of $5 billion, as reported, decreased 2 percent from sales of $5.08 billion in the prior year. In the first quarter of 2015, changes in foreign currencies had a negative impact of $322 million on sales and a negative impact of $.10 or 9 percent on earnings per share on a diluted basis compared to the first quarter of 2014.
“In the first quarter, our global components and enterprise computing solutions segments both delivered operating income growth and operating margin expansion. Our global components business experienced strong demand in Europe. Our focus on the higher value portion of the datacenter resulted in record first-quarter operating income and operating margins for our enterprise computing solutions business,” said Michael J. Long, chairman, president, and chief executive officer.
Global components first-quarter sales, as adjusted, grew 2 percent year over year. First-quarter sales of $3.35 billion, as reported, decreased 2 percent year over year. Global components had one fewer shipping day in the first quarter of 2015 compared to the first quarter of 2014 and this negatively impacted the rate of sales growth by approximately 1.5 percentage points. Americas components sales were flat year over year. Europe components sales grew 10 percent year over year on an as-adjusted basis. Sales in the region, as reported, declined 7 percent year over year. Components sales in the Asia-Pacific were flat year over year. Core components sales in Asia-Pacific grew 6 percent year over year.
Global enterprise computing solutions first-quarter sales of $1.66 billion grew 7 percent year over year, as adjusted. Sales, as reported, were flat year over year. Americas sales grew 8 percent year over year. Europe sales grew 8 percent on an as-adjusted basis. Sales in the region, as reported, declined 13 percent year over year. Both Americas and Europe experienced growth across the entirety of the solutions portfolio.
“First-quarter cash flow from operations was a negative $242 million. First-quarter cash flow would be a negative $92 million after adjusting for approximately $150 million of previously disclosed timing-related benefits to operating cash flow in 2014’s fourth quarter. In addition, in the first quarter of 2015 we made selected investments in inventory to support seasonally higher global components sales in the second quarter. Trailing 12-month cash flow from operations was $308 million,” said Paul J. Reilly, executive vice president, finance and operations, and chief financial officer. “Our strong balance sheet and accumulated cash flow provided us with the opportunity to both deploy capital toward our strategic initiatives and return approximately $64 million to shareholders through our stock repurchase program.