Arrow Faces Q2 Challenge with Resilience

Global distributor Arrow recently released its latest results, revealing challenges in soft automotive and industrial markets. Despite this, the company remains optimistic, stating that it has turned the corner of the downturn. Sean Kerins, Arrow’s president and CEO, expressed confidence in the company's performance, noting that they have been executing well in an evolving market environment.

According to Kerins, Arrow's value-added offerings in global components and improved momentum in enterprise computing solutions have helped maintain overall operating margin stability in the quarter. However, component sales took a hit, declining by 24% to $5.0 billion in Q2 compared to $6.68 billion in the same quarter last year. For the last six months, component sales were down to $10.2 billion from $13.5 billion in the previous year.

Despite the challenges, Kerins highlighted positive indicators in the market. He mentioned that there are signs of incremental improvement in leading indicators, with book-to-bill ratios advancing across all regions and bookings showing sequential growth. While the automotive and industrial sectors are still facing softness, Arrow believes that the industry is in the later stages of its cyclical correction.

Looking ahead, Arrow anticipates that global components sales will continue to decline in Q3, ranging from $4.70 billion to $5.10 billion. Additionally, global enterprise computing solutions sales are expected to be in the range of $1.67 billion to $1.87 billion. The company remains focused on navigating the challenges posed by the current market conditions while capitalizing on opportunities for growth.

For more information on Arrow's latest results and future outlook, visit their official website at www.arrow.com.