Arrow Electronics Reports Third-Quarter 2024 Results
-- Sales of
-- Third-Quarter Earnings Per Diluted Share of
“In the third quarter, the company continued to execute well in a challenging environment. While the cyclical correction continues in our global components business, we saw enterprise IT spending gain momentum,” said
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Arrow Consolidated |
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Quarter Ended |
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Nine Months Ended |
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(in millions except per share data) |
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2024 |
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2023 |
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2024 |
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2023 |
Consolidated sales |
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$ |
6,823 |
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$ |
8,007 |
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$ |
20,640 |
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$ |
25,258 |
Net income attributable to shareholders |
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101 |
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199 |
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293 |
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709 |
Net income per diluted share |
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1.88 |
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3.53 |
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5.42 |
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12.28 |
Non-GAAP net income attributable to shareholders (1) |
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128 |
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233 |
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410 |
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757 |
Non-GAAP net income per diluted share |
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2.38 |
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4.14 |
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7.59 |
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13.12 |
In the third quarter of 2024, sales decreased 15 percent year over year. Changes in foreign currencies had a positive impact on growth of approximately
Global Components
“In our global components business, the broader ecosystem inventory correction persists. Given the market environment, we remain focused on our suppliers and customers while managing the operational factors within our control,” said
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Global Components |
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Quarter Ended |
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Nine Months Ended |
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(in millions) |
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2024 |
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2023 |
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2024 |
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2023 |
Global components sales |
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$ |
4,946 |
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$ |
6,245 |
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$ |
15,170 |
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$ |
19,784 |
Global components operating income |
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189 |
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379 |
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624 |
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1,178 |
Global components non-GAAP operating income |
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193 |
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386 |
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654 |
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1,198 |
In the third quarter of 2024, global components sales decreased 21 percent year over year.
Global
“We saw better momentum and strong sales growth in our global ECS business, highlighted by a healthy market for hybrid cloud solutions, steady market dynamics in
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Global |
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Quarter Ended |
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Nine Months Ended |
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(in millions) |
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2024 |
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2023 |
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2024 |
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2023 |
Global ECS sales |
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$ |
1,877 |
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$ |
1,762 |
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$ |
5,471 |
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$ |
5,474 |
Global ECS operating income |
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76 |
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55 |
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250 |
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222 |
Global ECS non-GAAP operating income |
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77 |
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56 |
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253 |
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226 |
In the third quarter of 2024, global ECS sales increased 7 percent year over year and increased 6 percent year over year on a constant currency basis. EMEA ECS third-quarter sales increased 13 percent year over year and increased 11 percent year over year on a constant currency basis. Americas ECS third-quarter sales increased 2 percent year over year.
Other Financial Information
“In the third quarter, we reduced inventory levels by approximately
“In line with our ongoing efforts to simplify our operations, we are restructuring the business to drive additional cost savings,” said
In addition to actions taken to date, the company estimates total restructuring expenses over the next two years of
1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein. |
Fourth-Quarter 2024 Outlook
-
Consolidated sales of
$6.67 billion to$7.27 billion , with global components sales of$4.50 billion to$4.90 billion , and global enterprise computing solutions sales of$2.17 billion to$2.37 billion -
Net income per share on a diluted basis of
$1.35 to$1.55 , and non-GAAP net income per share on a diluted basis of$2.48 to$2.68 - Average tax rate in the range of 23 to 25 percent
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Interest expense of approximately
$60 million to$65 million -
Changes in foreign currencies to increase sales by approximately
$60 million , and earnings per share on a diluted basis by$0.02 compared to the fourth quarter of 2023 - Changes in foreign currencies to have no impact on growth in sales or earnings per share on a diluted basis compared to the third quarter of 2024
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Fourth-Quarter 2024 GAAP to non-GAAP Outlook Reconciliation |
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NON-GAAP SALES RECONCILIATION |
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Quarter Ended |
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Quarter Ended |
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(in billions) |
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2024 |
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2023 |
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% Change |
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2024 |
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2024 |
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% Change |
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Global components sales, GAAP |
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$ |
4.50 - 4.90 |
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$ |
5.64 |
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(20%) - (13%) |
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$ |
4.50 - 4.90 |
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$ |
4.95 |
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(9%) - (1%) |
Impact of changes in foreign currencies |
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— |
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0.04 |
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— |
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— |
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Global components sales, constant currency |
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$ |
4.50 - 4.90 |
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$ |
5.68 |
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(21%) - (14%) |
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$ |
4.50 - 4.90 |
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$ |
4.95 |
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(9%) - (1%) |
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Global ECS sales, GAAP |
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$ |
2.17 - 2.37 |
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$ |
2.21 |
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(2%) - 7% |
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$ |
2.17 - 2.37 |
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$ |
1.88 |
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15% - 26% |
Impact of changes in foreign currencies |
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— |
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0.02 |
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— |
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— |
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Global ECS sales, constant currency |
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$ |
2.17 - 2.37 |
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$ |
2.23 |
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(3%) - 6% |
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$ |
2.17 - 2.37 |
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$ |
1.88 |
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15% - 26% |
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NON-GAAP EARNINGS RECONCILIATION |
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Reported GAAP measure |
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Intangible amortization expense |
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Restructuring & integration charges |
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Non-GAAP measure |
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Net income per diluted share |
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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
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/487434328. Shortly after the conclusion of the conference call, a webcast replay will be available on the Arrow website for one year.
About
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 fourth 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, the timing of the completion of the Operating Expense Efficiency Plan (the “Plan”) and Arrow’s estimated costs and expected operating expense reductions from the Plan, industry trends 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: the incurrence of additional charges not currently contemplated and failure to realize contemplated cost savings due to unanticipated events that may occur, including in connection with the implementation of the Plan; 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; restructuring activities and impacts thereof; 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
Certain Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited) |
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Quarter Ended |
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Nine Months Ended |
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Sales |
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$ |
6,823,319 |
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$ |
8,007,019 |
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$ |
20,640,447 |
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$ |
25,257,963 |
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Cost of sales |
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6,038,491 |
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7,027,422 |
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18,151,349 |
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22,098,495 |
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Gross profit |
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784,828 |
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979,597 |
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2,489,098 |
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3,159,468 |
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Operating expenses: |
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Selling, general, and administrative |
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534,508 |
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563,150 |
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1,670,429 |
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1,822,783 |
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Depreciation and amortization |
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40,592 |
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45,005 |
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123,356 |
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137,948 |
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Restructuring, integration, and other |
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34,466 |
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31,359 |
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121,859 |
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44,252 |
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609,566 |
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639,514 |
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1,915,644 |
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2,004,983 |
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Operating income |
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175,262 |
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340,083 |
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573,454 |
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1,154,485 |
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Equity in earnings of affiliated companies |
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1,002 |
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1,392 |
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1,912 |
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4,373 |
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Gain (loss) on investments, net |
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3,757 |
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(6,159 |
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(760 |
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4,649 |
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Loss on extinguishment of debt |
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— |
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— |
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(1,657 |
) |
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— |
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Employee benefit plan expense, net |
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(979 |
) |
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(854 |
) |
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(2,892 |
) |
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(2,510 |
) |
Interest and other financing expense, net |
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(62,947 |
) |
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(82,180 |
) |
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(209,442 |
) |
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(246,672 |
) |
Income before income taxes |
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116,095 |
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|
252,282 |
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360,615 |
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914,325 |
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Provision for income taxes |
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15,198 |
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52,241 |
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66,996 |
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201,168 |
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Consolidated net income |
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100,897 |
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200,041 |
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293,619 |
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713,157 |
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Noncontrolling interests |
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|
330 |
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|
1,382 |
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|
753 |
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|
4,189 |
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Net income attributable to shareholders |
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$ |
100,567 |
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$ |
198,659 |
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$ |
292,866 |
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$ |
708,968 |
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Net income per share: |
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Basic |
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$ |
1.90 |
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$ |
3.57 |
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$ |
5.48 |
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$ |
12.43 |
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Diluted |
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$ |
1.88 |
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$ |
3.53 |
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$ |
5.42 |
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$ |
12.28 |
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Weighted-average shares outstanding: |
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Basic |
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53,010 |
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55,597 |
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53,476 |
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57,021 |
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Diluted |
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53,475 |
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56,298 |
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53,999 |
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57,715 |
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CONSOLIDATED BALANCE SHEETS (In thousands except par value) (Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
248,000 |
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$ |
218,053 |
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Accounts receivable, net |
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|
11,726,601 |
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|
12,238,073 |
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Inventories |
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|
4,529,655 |
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|
5,187,225 |
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Other current assets |
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|
1,022,620 |
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|
684,126 |
|
Total current assets |
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17,526,876 |
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|
18,327,477 |
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Property, plant, and equipment, at cost: |
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Land |
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|
5,691 |
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|
5,691 |
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Buildings and improvements |
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|
193,315 |
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|
195,579 |
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Machinery and equipment |
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1,648,708 |
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|
1,632,606 |
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1,847,714 |
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|
1,833,876 |
|
Less: Accumulated depreciation and amortization |
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(1,354,179 |
) |
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(1,303,136 |
) |
Property, plant, and equipment, net |
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|
493,535 |
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|
530,740 |
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Investments in affiliated companies |
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|
61,506 |
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|
62,741 |
|
Intangible assets, net |
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|
105,313 |
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|
127,440 |
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|
2,084,160 |
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|
2,050,426 |
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Other assets |
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|
663,259 |
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|
627,344 |
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Total assets |
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$ |
20,934,649 |
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|
$ |
21,726,168 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
|
$ |
9,392,389 |
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|
$ |
10,070,015 |
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Accrued expenses |
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|
1,668,633 |
|
|
|
1,463,915 |
|
Short-term borrowings, including current portion of long-term debt |
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|
909,826 |
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|
1,653,954 |
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Total current liabilities |
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|
11,970,848 |
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|
13,187,884 |
|
Long-term debt |
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|
2,363,241 |
|
|
|
2,153,553 |
|
Other liabilities |
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|
564,483 |
|
|
|
507,424 |
|
|
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Equity: |
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Shareholders’ equity: |
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Common stock, par value $1: |
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Authorized - 160,000 shares in both 2024 and 2023 |
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Issued - 58,059 and 57,691 shares in 2024 and 2023, respectively |
|
|
58,059 |
|
|
|
57,691 |
|
Capital in excess of par value |
|
|
582,572 |
|
|
|
553,340 |
|
|
|
|
(506,157 |
) |
|
|
(297,745 |
) |
Retained earnings |
|
|
6,083,083 |
|
|
|
5,790,217 |
|
Accumulated other comprehensive loss |
|
|
(254,460 |
) |
|
|
(298,039 |
) |
Total shareholders’ equity |
|
|
5,963,097 |
|
|
|
5,805,464 |
|
Noncontrolling interests |
|
|
72,980 |
|
|
|
71,843 |
|
Total equity |
|
|
6,036,077 |
|
|
|
5,877,307 |
|
Total liabilities and equity |
|
$ |
20,934,649 |
|
|
$ |
21,726,168 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
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Quarter Ended |
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|
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Cash flows from operating activities: |
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|
|
|
|
|
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Consolidated net income |
|
$ |
100,897 |
|
|
$ |
200,041 |
|
Adjustments to reconcile consolidated net income to net cash provided by operations: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
40,592 |
|
|
|
45,005 |
|
Amortization of stock-based compensation |
|
|
8,487 |
|
|
|
6,519 |
|
Equity in earnings of affiliated companies |
|
|
(1,002 |
) |
|
|
(1,392 |
) |
Deferred income taxes |
|
|
(12,889 |
) |
|
|
(19,639 |
) |
Loss (gain) on investments, net |
|
|
(3,686 |
) |
|
|
6,159 |
|
Other |
|
|
(670 |
) |
|
|
1,092 |
|
Change in assets and liabilities, net of effects of acquired businesses: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
(701,168 |
) |
|
|
260,749 |
|
Inventories |
|
|
169,211 |
|
|
|
(383,647 |
) |
Accounts payable |
|
|
550,797 |
|
|
|
157,482 |
|
Accrued expenses |
|
|
(83,506 |
) |
|
|
127,235 |
|
Other assets and liabilities |
|
|
13,495 |
|
|
|
(77,897 |
) |
Net cash provided by operating activities |
|
|
80,558 |
|
|
|
321,707 |
|
Cash flows from investing activities: |
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|
|
|
|
|
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Acquisition of property, plant, and equipment |
|
|
(18,519 |
) |
|
|
(20,670 |
) |
Other |
|
|
10,677 |
|
|
|
— |
|
Net cash used for investing activities |
|
|
(7,842 |
) |
|
|
(20,670 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
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Change in short-term and other borrowings |
|
|
549,451 |
|
|
|
603,693 |
|
Proceeds from (repayments of) long-term bank borrowings, net |
|
|
(613,449 |
) |
|
|
(557,308 |
) |
Net proceeds from note offering |
|
|
494,886 |
|
|
|
— |
|
Redemption of notes |
|
|
(500,000 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
|
585 |
|
|
|
443 |
|
Repurchases of common stock |
|
|
(51,051 |
) |
|
|
(203,491 |
) |
Other |
|
|
(899 |
) |
|
|
— |
|
Net cash used for financing activities |
|
|
(120,477 |
) |
|
|
(156,663 |
) |
Effect of exchange rate changes on cash |
|
|
82,752 |
|
|
|
(51,462 |
) |
Net increase in cash and cash equivalents |
|
|
34,991 |
|
|
|
92,912 |
|
Cash and cash equivalents at beginning of period |
|
|
213,009 |
|
|
|
240,382 |
|
Cash and cash equivalents at end of period |
|
$ |
248,000 |
|
|
$ |
333,294 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Nine Months Ended |
||||||
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Consolidated net income |
|
$ |
293,619 |
|
|
$ |
713,157 |
|
Adjustments to reconcile consolidated net income to net cash provided by operations: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
123,356 |
|
|
|
137,948 |
|
Amortization of stock-based compensation |
|
|
30,187 |
|
|
|
34,868 |
|
Equity in earnings of affiliated companies |
|
|
(1,912 |
) |
|
|
(4,373 |
) |
Deferred income taxes |
|
|
(20,287 |
) |
|
|
(53,038 |
) |
Loss on extinguishment of debt |
|
|
1,657 |
|
|
|
— |
|
Loss (gain) on investments, net |
|
|
1,077 |
|
|
|
(4,649 |
) |
Other |
|
|
4,194 |
|
|
|
4,078 |
|
Change in assets and liabilities, net of effects of acquired businesses: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
512,394 |
|
|
|
1,585,521 |
|
Inventories |
|
|
662,685 |
|
|
|
(525,020 |
) |
Accounts payable |
|
|
(687,015 |
) |
|
|
(1,355,777 |
) |
Accrued expenses |
|
|
189,537 |
|
|
|
(88,348 |
) |
Other assets and liabilities |
|
|
(305,543 |
) |
|
|
(25,660 |
) |
Net cash provided by operating activities |
|
|
803,949 |
|
|
|
418,707 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Acquisition of property, plant, and equipment |
|
|
(70,155 |
) |
|
|
(57,775 |
) |
Other |
|
|
17,129 |
|
|
|
10,962 |
|
Net cash used for investing activities |
|
|
(53,026 |
) |
|
|
(46,813 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Change in short-term and other borrowings |
|
|
(595,069 |
) |
|
|
802,032 |
|
Proceeds from (repayments of) long-term bank borrowings, net |
|
|
60,158 |
|
|
|
(566,734 |
) |
Net proceeds from note offering |
|
|
989,564 |
|
|
|
496,268 |
|
Redemption of notes |
|
|
(1,000,000 |
) |
|
|
(300,000 |
) |
Proceeds from exercise of stock options |
|
|
5,353 |
|
|
|
16,824 |
|
Repurchases of common stock |
|
|
(214,352 |
) |
|
|
(719,708 |
) |
Settlement of forward-starting interest rate swap |
|
|
— |
|
|
|
56,711 |
|
Other |
|
|
(1,040 |
) |
|
|
(142 |
) |
Net cash used for financing activities |
|
|
(755,386 |
) |
|
|
(214,749 |
) |
Effect of exchange rate changes on cash |
|
|
34,410 |
|
|
|
(766 |
) |
Net increase in cash and cash equivalents |
|
|
29,947 |
|
|
|
156,379 |
|
Cash and cash equivalents at beginning of period |
|
|
218,053 |
|
|
|
176,915 |
|
Cash and cash equivalents at end of period |
|
$ |
248,000 |
|
|
$ |
333,294 |
|
NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
||
|
|
Quarter Ended |
|
|
|
||||||
|
|
|
|
|
|
% Change |
|
||||
|
|
|
|
|
|
|
|
|
|
||
Consolidated sales, as reported |
|
$ |
6,823,319 |
|
$ |
8,007,019 |
|
|
(14.8 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
36,708 |
|
|
|
|
|
Consolidated sales, constant currency |
|
$ |
6,823,319 |
|
$ |
8,043,727 |
|
|
(15.2 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
Global components sales, as reported |
|
$ |
4,946,059 |
|
$ |
6,245,192 |
|
|
(20.8 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
24,592 |
|
|
|
|
|
Global components sales, constant currency |
|
$ |
4,946,059 |
|
$ |
6,269,784 |
|
|
(21.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
1,638,459 |
|
$ |
1,869,934 |
|
|
(12.4 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
(809 |
) |
|
|
|
|
|
|
$ |
1,638,459 |
|
$ |
1,869,125 |
|
|
(12.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
2,017,814 |
|
$ |
2,387,835 |
|
|
(15.5 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
2,433 |
|
|
|
|
|
|
|
$ |
2,017,814 |
|
$ |
2,390,268 |
|
|
(15.6 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
EMEA components sales, as reported |
|
$ |
1,289,786 |
|
$ |
1,987,423 |
|
|
(35.1 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
22,968 |
|
|
|
|
|
EMEA components sales, constant currency |
|
$ |
1,289,786 |
|
$ |
2,010,391 |
|
|
(35.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
Global ECS sales, as reported |
|
$ |
1,877,260 |
|
$ |
1,761,827 |
|
|
6.6 |
|
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
12,116 |
|
|
|
|
|
Global ECS sales, constant currency |
|
$ |
1,877,260 |
|
$ |
1,773,943 |
|
|
5.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
||
Americas ECS sales, as reported |
|
$ |
1,033,115 |
|
$ |
1,015,924 |
|
|
1.7 |
|
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
(645 |
) |
|
|
|
|
Americas ECS sales, constant currency |
|
$ |
1,033,115 |
|
$ |
1,015,279 |
|
|
1.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
||
EMEA ECS sales, as reported |
|
$ |
844,145 |
|
$ |
745,903 |
|
|
13.2 |
|
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
12,761 |
|
|
|
|
|
EMEA ECS sales, constant currency |
|
$ |
844,145 |
|
$ |
758,664 |
|
|
11.3 |
|
% |
NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
||
|
|
Nine Months Ended |
|
|
|
||||||
|
|
|
|
|
|
% Change |
|
||||
|
|
|
|
|
|
|
|
|
|
||
Consolidated sales, as reported |
|
$ |
20,640,447 |
|
$ |
25,257,963 |
|
|
(18.3 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
(6,154 |
) |
|
|
|
|
Consolidated sales, constant currency |
|
$ |
20,640,447 |
|
$ |
25,251,809 |
|
|
(18.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
Global components sales, as reported |
|
$ |
15,169,507 |
|
$ |
19,783,867 |
|
|
(23.3 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
(24,213 |
) |
|
|
|
|
Global components sales, constant currency |
|
$ |
15,169,507 |
|
$ |
19,759,654 |
|
|
(23.2 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
4,807,991 |
|
$ |
6,169,949 |
|
|
(22.1 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
(2,994 |
) |
|
|
|
|
|
|
$ |
4,807,991 |
|
$ |
6,166,955 |
|
|
(22.0 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
5,975,729 |
|
$ |
7,226,871 |
|
|
(17.3 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
(39,533 |
) |
|
|
|
|
|
|
$ |
5,975,729 |
|
$ |
7,187,338 |
|
|
(16.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
EMEA components sales, as reported |
|
$ |
4,385,787 |
|
$ |
6,387,047 |
|
|
(31.3 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
18,314 |
|
|
|
|
|
EMEA components sales, constant currency |
|
$ |
4,385,787 |
|
$ |
6,405,361 |
|
|
(31.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
Global ECS sales, as reported |
|
$ |
5,470,940 |
|
$ |
5,474,096 |
|
|
(0.1 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
18,059 |
|
|
|
|
|
Global ECS sales, constant currency |
|
$ |
5,470,940 |
|
$ |
5,492,155 |
|
|
(0.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
Americas ECS sales, as reported |
|
$ |
2,904,933 |
|
$ |
3,014,544 |
|
|
(3.6 |
) |
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
(3,184 |
) |
|
|
|
|
Americas ECS sales, constant currency |
|
$ |
2,904,933 |
|
$ |
3,011,360 |
|
|
(3.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
||
EMEA ECS sales, as reported |
|
$ |
2,566,007 |
|
$ |
2,459,552 |
|
|
4.3 |
|
% |
Impact of changes in foreign currencies |
|
|
— |
|
|
21,243 |
|
|
|
|
|
EMEA ECS sales, constant currency |
|
$ |
2,566,007 |
|
$ |
2,480,795 |
|
|
3.4 |
|
% |
NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Three months ended |
|
|||||||||||||||||||||||
|
|
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 |
|
$ |
175,262 |
|
$ |
7,308 |
|
$ |
34,466 |
|
$ |
(1,857 |
) |
|
$ |
— |
$ |
— |
|
|
$ |
215,179 |
|
|
Income before income taxes |
|
|
116,095 |
|
|
7,308 |
|
|
34,466 |
|
|
(1,857 |
) |
|
|
— |
|
(3,757 |
) |
|
|
152,255 |
|
|
Provision for income taxes |
|
|
15,198 |
|
|
1,819 |
|
|
8,592 |
|
|
(444 |
) |
|
|
— |
|
(902 |
) |
|
|
24,263 |
|
|
Consolidated net income |
|
|
100,897 |
|
|
5,489 |
|
|
25,874 |
|
|
(1,413 |
) |
|
|
— |
|
(2,855 |
) |
|
|
127,992 |
|
|
Noncontrolling interests |
|
|
330 |
|
|
136 |
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
|
466 |
|
|
Net income attributable to shareholders |
|
$ |
100,567 |
|
$ |
5,353 |
|
$ |
25,874 |
|
$ |
(1,413 |
) |
|
$ |
— |
$ |
(2,855 |
) |
|
$ |
127,526 |
|
|
Net income per diluted share (4) |
|
$ |
1.88 |
|
$ |
0.10 |
|
$ |
0.48 |
|
$ |
(0.03 |
) |
|
$ |
— |
$ |
(0.05 |
) |
|
$ |
2.38 |
|
|
Effective tax rate (5) |
|
|
13.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|||||||||||||||||||||
|
|
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 |
|
$ |
340,083 |
|
$ |
7,863 |
|
$ |
31,359 |
|
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
379,305 |
|
|
Income before income taxes |
|
|
252,282 |
|
|
7,863 |
|
|
31,359 |
|
|
— |
|
|
— |
|
6,159 |
|
|
297,663 |
|
|
Provision for income taxes |
|
|
52,241 |
|
|
1,959 |
|
|
7,321 |
|
|
— |
|
|
— |
|
1,476 |
|
|
62,997 |
|
|
Consolidated net income |
|
|
200,041 |
|
|
5,904 |
|
|
24,038 |
|
|
— |
|
|
— |
|
4,683 |
|
|
234,666 |
|
|
Noncontrolling interests |
|
|
1,382 |
|
|
138 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
1,520 |
|
|
Net income attributable to shareholders |
|
$ |
198,659 |
|
$ |
5,766 |
|
$ |
24,038 |
|
$ |
— |
|
$ |
— |
$ |
4,683 |
|
$ |
233,146 |
|
|
Net income per diluted share (4) |
|
$ |
3.53 |
|
$ |
0.10 |
|
$ |
0.43 |
|
$ |
— |
|
$ |
— |
$ |
0.08 |
|
$ |
4.14 |
|
|
Effective tax rate (5) |
|
|
20.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.2 |
% |
NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|||||||||||||||||||||
|
|
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 |
|
$ |
573,454 |
|
$ |
22,310 |
|
$ |
121,859 |
|
$ |
10,229 |
|
$ |
— |
|
$ |
— |
|
$ |
727,852 |
|
Income before income taxes |
|
|
360,615 |
|
|
22,310 |
|
|
121,859 |
|
|
10,229 |
|
|
— |
|
|
2,417 |
|
|
517,430 |
|
Provision for income taxes |
|
|
66,996 |
|
|
5,562 |
|
|
30,820 |
|
|
2,447 |
|
|
— |
|
|
580 |
|
|
106,405 |
|
Consolidated net income |
|
|
293,619 |
|
|
16,748 |
|
|
91,039 |
|
|
7,782 |
|
|
— |
|
|
1,837 |
|
|
411,025 |
|
Noncontrolling interests |
|
|
753 |
|
|
406 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,159 |
|
Net income attributable to shareholders |
|
$ |
292,866 |
|
$ |
16,342 |
|
$ |
91,039 |
|
$ |
7,782 |
|
$ |
— |
|
$ |
1,837 |
|
$ |
409,866 |
|
Net income per diluted share (4) |
|
$ |
5.42 |
|
$ |
0.30 |
|
$ |
1.69 |
|
$ |
0.14 |
|
$ |
— |
|
$ |
0.03 |
|
$ |
7.59 |
|
Effective tax rate (5) |
|
|
18.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Nine months ended |
|
|||||||||||||||||||||||
|
|
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 |
|
$ |
1,154,485 |
|
$ |
23,751 |
|
$ |
44,252 |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,222,488 |
|
Income before income taxes |
|
|
914,325 |
|
|
23,751 |
|
|
44,252 |
|
|
— |
|
|
— |
|
|
|
(4,649 |
) |
|
|
977,679 |
|
Provision for income taxes |
|
|
201,168 |
|
|
5,961 |
|
|
10,638 |
|
|
— |
|
|
(942 |
) |
|
|
(1,114 |
) |
|
|
215,711 |
|
Consolidated net income |
|
|
713,157 |
|
|
17,790 |
|
|
33,614 |
|
|
— |
|
|
942 |
|
|
|
(3,535 |
) |
|
|
761,968 |
|
Noncontrolling interests |
|
|
4,189 |
|
|
408 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
4,597 |
|
Net income attributable to shareholders |
|
$ |
708,968 |
|
$ |
17,382 |
|
$ |
33,614 |
|
$ |
— |
|
$ |
942 |
|
|
$ |
(3,535 |
) |
|
$ |
757,371 |
|
Net income per diluted share (4) |
|
$ |
12.28 |
|
$ |
0.30 |
|
$ |
0.58 |
|
$ |
— |
|
$ |
0.02 |
|
|
$ |
(0.06 |
) |
|
$ |
13.12 |
|
Effective tax rate (5) |
|
|
22.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22.1 |
% |
______________________________
(1) Includes write downs (reversals) of inventory related to the wind down of a business. |
(2) Other includes loss (gain) on investments, net. |
(3) Other includes loss (gain) on investments, net and loss on extinguishment of debt. |
(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. |
SEGMENT INFORMATION (In thousands) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Quarter Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Global components |
|
$ |
4,946,059 |
|
|
$ |
6,245,192 |
|
|
$ |
15,169,507 |
|
|
$ |
19,783,867 |
|
Global ECS |
|
|
1,877,260 |
|
|
|
1,761,827 |
|
|
|
5,470,940 |
|
|
|
5,474,096 |
|
Consolidated |
|
$ |
6,823,319 |
|
|
$ |
8,007,019 |
|
|
$ |
20,640,447 |
|
|
$ |
25,257,963 |
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Global components (a) |
|
$ |
188,600 |
|
|
$ |
379,053 |
|
|
$ |
624,363 |
|
|
$ |
1,177,906 |
|
Global ECS (b) |
|
|
75,614 |
|
|
|
54,624 |
|
|
|
249,654 |
|
|
|
221,951 |
|
Corporate (c) |
|
|
(88,952 |
) |
|
|
(93,594 |
) |
|
|
(300,563 |
) |
|
|
(245,372 |
) |
Consolidated |
|
$ |
175,262 |
|
|
$ |
340,083 |
|
|
$ |
573,454 |
|
|
$ |
1,154,485 |
|
(a) |
Global components operating income includes a reversal of |
|
(b) |
For the third quarter and first nine months of 2023, global ECS operating income includes charges of |
|
(c) |
Corporate operating loss includes restructuring, integration, and other charges of |
NON-GAAP SEGMENT RECONCILIATION |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Nine Months Ended |
|||||||||
|
|
|
|
|
|
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
2024 |
|
2023 |
||||
Global components operating income, as reported |
|
$ |
188,600 |
|
|
$ |
379,053 |
|
$ |
624,363 |
|
$ |
1,177,906 |
Intangible assets amortization expense |
|
|
6,247 |
|
|
|
6,640 |
|
|
19,134 |
|
|
20,064 |
Impact of wind down to inventory |
|
|
(1,857 |
) |
|
|
— |
|
|
10,229 |
|
|
— |
Global components non-GAAP operating income |
|
$ |
192,990 |
|
|
$ |
385,693 |
|
$ |
653,726 |
|
$ |
1,197,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global ECS operating income, as reported |
|
$ |
75,614 |
|
|
$ |
54,624 |
|
$ |
249,654 |
|
$ |
221,951 |
Intangible assets amortization expense |
|
|
1,061 |
|
|
|
1,223 |
|
|
3,176 |
|
|
3,687 |
Global ECS non-GAAP operating income |
|
$ |
76,675 |
|
|
$ |
55,847 |
|
$ |
252,830 |
|
$ |
225,638 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031098147/en/
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