-- Record First-Quarter Sales, Gross Profit, Operating Income, and
Earnings per Share --
-- First-Quarter Earnings Per Share of $1.56; Non-GAAP Earnings Per
Share of $1.88 --
CENTENNIAL, Colo.--(BUSINESS WIRE)--May 3, 2018--
Arrow Electronics, Inc. (NYSE:ARW) today reported first-quarter 2018
sales of $6.88 billion, an increase of 20 percent from sales of $5.74
billion in the first quarter of 2017. First-quarter net income of $139
million, or $1.56 per share on a diluted basis, compared with net income
of $115 million, or $1.27 per share on a diluted basis, in the first
quarter of 2017. Excluding certain items1, net income would
have been $168 million, or $1.88 per share on a diluted basis, in the
first quarter of 2018, compared with net income of $132 million, or
$1.46 per share on a diluted basis, in the first quarter of 2017.
Excluding certain items1, net income increased 27 percent
year over year, and earnings per share on a diluted basis increased 29
percent year over year.
“We continue to expand our line card, our services, and the solutions we
bring to the marketplace to capitalize on the exciting growth
opportunities from IoT, industrial automation, and smart cities, homes,
and vehicles,” said Michael J. Long, chairman, president, and chief
executive officer. “We are delivering differentiated performance as
evidenced by our fifth straight quarter of record results.”
Global components first-quarter sales of $4.93 billion increased 21
percent year over year. First-quarter sales, as adjusted, increased 16
percent year over year. Americas components sales increased 15 percent
year over year. Sales in the region, as adjusted, increased 13 percent
year over year. Asia-Pacific components sales increased 20 percent year
over year. Europe components sales increased 32 percent year over year.
Sales in the region, as adjusted, increased 16 percent year over year.
Global components first-quarter operating income increased 32 percent
year over year. “As we expected, we are capturing strong leverage on our
growing sales,” said Mr. Long.
Global enterprise computing solutions first-quarter sales of $1.95
billion increased 16 percent year over year. First-quarter sales, as
adjusted, increased 11 percent year over year. Americas enterprise
computing solutions sales increased 9 percent year over year. Sales in
the region, as adjusted, increased 12 percent year over year. Europe
enterprise computing solutions sales increased 29 percent year over
year. Sales in the region, as adjusted, increased 9 percent year over
year. Global enterprise computing solutions first-quarter operating
income grew 2 percent year over year and grew 1 percent year over year
excluding amortization of intangibles expense. The divestiture of the
systems integration business on March 2, 2018 resulted in an
approximately $2 million unfavorable operating income comparison to the
first quarter of 2017.
“Value-added resellers and managed service providers are moving their
businesses to Arrow due to our leadership in newer technologies,
including cloud, security, and software-defined data center solutions,”
added Mr. Long.
“Return on invested capital increased year over year for the third
straight quarter. First-quarter cash flow from operations was a
seasonally negative $75 million. We expect the substantial investments
we made to support our rapid growth, and our disciplined approach to
working capital management, to drive further improvements in returns and
cash flow in the coming quarters,” said Chris Stansbury, senior vice
president and chief financial officer. “We remain committed to returning
excess cash to shareholders. During the first quarter, we returned
approximately $40 million to shareholders through our stock repurchase
program. We had approximately $319 million of remaining authorization
under our share repurchase program at the end of the first quarter.”
1 A reconciliation of non-GAAP adjusted financial
measures, including sales, as adjusted, operating income, as adjusted,
net income attributable to shareholders, as adjusted, and net income per
share, as adjusted, to GAAP financial measures is presented in the
reconciliation tables included herein.
GUIDANCE
“As we look to the second quarter, we believe that total sales will be
between $7 billion and $7.4 billion, with global components sales
between $5 billion and $5.2 billion, and global enterprise computing
solutions sales between $2 billion and $2.2 billion. As a result of this
outlook, we expect earnings per share on a diluted basis, to be in the
range of $1.78 to $1.90, and earnings per share on a diluted basis,
excluding certain items1, to be in the range of $2.08 to
$2.20 per share. Our guidance assumes interest expense will be
approximately $48 million. Our guidance also assumes an average tax rate
of 23.5 percent to 25.5 percent and average diluted shares outstanding
are expected to be approximately 89 million. We are expecting the
average USD-to-Euro exchange rate for the second quarter to be
approximately $1.23 to €1,” said Mr. Stansbury.
Please refer to the CFO commentary, which can be found at
investor.arrow.com, as a supplement to the company’s earnings release.
Arrow Electronics (www.arrow.com)
is a global provider of products, services and solutions to industrial
and commercial users of electronic components and enterprise computing
solutions. Arrow serves as a supply channel partner for more than
150,000 original equipment manufacturers, value-added resellers,
contract manufacturers, and commercial customers through a global
network. The company maintains over 300 sales facilities and 45
distribution and value-added centers, serving over 80 countries.
Information Relating to Forward-Looking Statements
This press release includes forward-looking statements that 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: industry conditions,
the company's implementation of its new enterprise resource planning
system, changes in product supply, pricing and customer demand,
competition, other vagaries in the global components and global
enterprise computing solutions markets, changes in relationships with
key suppliers, increased profit margin pressure, the effects of
additional actions taken to become more efficient or lower costs, risks
related to the integration of acquired businesses, changes in legal and
regulatory matters, and the company’s ability to generate additional
cash flow. Forward-looking statements are those statements which are not
statements of historical fact. These forward-looking statements can be
identified by forward-looking words such as "expects," "anticipates,"
"intends," "plans," "may," "will," "believes," "seeks," "estimates," and
similar expressions. Shareholders and other readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date on which they are made. The company undertakes no
obligation to update publicly or revise any of the forward-looking
statements.
For a further discussion of factors to consider in connection with these
forward-looking statements, investors should refer to Item 1A Risk
Factors of the company’s Annual Report on Form 10-K for the year ended
Dec. 31, 2017.
Certain Non-GAAP Financial Information
In addition to disclosing financial results that are determined in
accordance with accounting principles generally accepted in the United
States (“GAAP”), the company also provides certain non-GAAP financial
information relating to sales, operating income, net income attributable
to shareholders, and net income per basic and diluted share. The company
provides sales, income, or expense on a non-GAAP basis adjusted for the
impact of changes in foreign currencies and the impact of
acquisitions/dispositions by adjusting the company's operating results,
including the amortization expense related to acquired/disposed
intangible assets, as if the acquisitions/dispositions had occurred at
the beginning of the earliest period presented (referred to as "impact
of acquisitions" and "impact of dispositions"). Operating income, net
income attributable to shareholders, and net income per basic and
diluted share are adjusted to exclude identifiable intangible
amortization, restructuring, integration, and other charges, and certain
charges, credits, gains, and losses that the company believes impact the
comparability of its results of operations. These charges, credits,
gains, and losses arise out of the company’s efficiency enhancement
initiatives, acquisitions/dispositions (including intangible assets
amortization expense), and financing activities. A reconciliation of the
company’s non-GAAP financial information to GAAP is set forth in the
tables below.
The company believes that such non-GAAP financial information is useful
to investors to assist in assessing and understanding the company’s
operating performance and underlying trends in the company’s business
because management considers these items referred to above to be outside
the company’s core operating results. This non-GAAP financial
information is among the primary indicators management uses as a basis
for evaluating the company’s financial and operating performance. In
addition, the company’s Board of Directors may use this non-GAAP
financial information in evaluating management performance and setting
management compensation.
The presentation of this additional non-GAAP financial information is
not meant to be considered in isolation or as a substitute for, or
alternative to, sales, operating income, net income and net income per
basic and diluted share determined in accordance with GAAP. Analysis of
results and outlook on a non-GAAP basis should be used as a complement
to, and in conjunction with, data presented in accordance with GAAP.
|
ARROW ELECTRONICS, INC.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
March 31, 2018
|
|
|
April 1, 2017
|
|
|
|
|
|
(adjusted)
|
Sales
|
|
$
|
6,875,613
|
|
|
|
$
|
5,736,780
|
Cost of sales
|
|
6,006,669
|
|
|
|
4,975,583
|
Gross profit
|
|
868,944
|
|
|
|
761,197
|
Operating expenses:
|
|
|
|
|
|
Selling, general, and administrative expenses
|
|
562,969
|
|
|
|
515,526
|
Depreciation and amortization
|
|
47,247
|
|
|
|
37,141
|
Loss on disposition of businesses, net
|
|
1,562
|
|
|
|
—
|
Restructuring, integration, and other charges
|
|
21,171
|
|
|
|
15,505
|
|
|
632,949
|
|
|
|
568,172
|
Operating income
|
|
235,995
|
|
|
|
193,025
|
Equity in earnings (losses) of affiliated companies
|
|
(673
|
)
|
|
|
925
|
Gain (loss) on investments, net
|
|
(2,452
|
)
|
|
|
1,982
|
Post-retirement expense
|
|
1,231
|
|
|
|
1,800
|
Interest and other financing expense, net
|
|
45,179
|
|
|
|
38,249
|
Income before income taxes
|
|
186,460
|
|
|
|
155,883
|
Provision for income taxes
|
|
46,590
|
|
|
|
39,564
|
Consolidated net income
|
|
139,870
|
|
|
|
116,319
|
Noncontrolling interests
|
|
776
|
|
|
|
1,582
|
Net income attributable to shareholders
|
|
$
|
139,094
|
|
|
|
$
|
114,737
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
Basic
|
|
$
|
1.58
|
|
|
|
$
|
1.29
|
Diluted
|
|
$
|
1.56
|
|
|
|
$
|
1.27
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
Basic
|
|
87,955
|
|
|
|
89,262
|
Diluted
|
|
89,035
|
|
|
|
90,541
|
|
|
|
|
|
|
|
ARROW ELECTRONICS, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(In thousands except par value)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
|
|
|
|
(adjusted)
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
548,644
|
|
|
|
$
|
730,083
|
|
Accounts receivable, net
|
|
7,378,453
|
|
|
|
8,125,588
|
|
Inventories
|
|
3,572,714
|
|
|
|
3,302,518
|
|
Other current assets
|
|
267,402
|
|
|
|
256,028
|
|
Total current assets
|
|
11,767,213
|
|
|
|
12,414,217
|
|
Property, plant, and equipment, at cost:
|
|
|
|
|
|
Land
|
|
13,288
|
|
|
|
12,866
|
|
Buildings and improvements
|
|
163,901
|
|
|
|
160,664
|
|
Machinery and equipment
|
|
1,362,693
|
|
|
|
1,330,730
|
|
|
|
1,539,882
|
|
|
|
1,504,260
|
|
Less: Accumulated depreciation and amortization
|
|
(690,015
|
)
|
|
|
(665,785
|
)
|
Property, plant, and equipment, net
|
|
849,867
|
|
|
|
838,475
|
|
Investments in affiliated companies
|
|
88,166
|
|
|
|
88,347
|
|
Intangible assets, net
|
|
348,378
|
|
|
|
286,215
|
|
Goodwill
|
|
2,703,542
|
|
|
|
2,470,047
|
|
Other assets
|
|
367,639
|
|
|
|
361,966
|
|
Total assets
|
|
$
|
16,124,805
|
|
|
|
$
|
16,459,267
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
6,110,752
|
|
|
|
$
|
6,756,830
|
|
Accrued expenses
|
|
806,122
|
|
|
|
841,675
|
|
Short-term borrowings, including current portion of long-term debt
|
|
38,220
|
|
|
|
356,806
|
|
Total current liabilities
|
|
6,955,094
|
|
|
|
7,955,311
|
|
Long-term debt
|
|
3,533,050
|
|
|
|
2,933,045
|
|
Other liabilities
|
|
487,847
|
|
|
|
572,971
|
|
Commitments and contingencies
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Common stock, par value $1:
|
|
|
|
|
|
Authorized - 160,000 shares in both 2018 and 2017
|
|
|
|
|
|
Issued - 125,424 shares in both 2018 and 2017
|
|
125,424
|
|
|
|
125,424
|
|
Capital in excess of par value
|
|
1,105,108
|
|
|
|
1,114,167
|
|
Treasury stock (37,804 and 37,733 shares in 2018 and 2017,
respectively), at cost
|
|
(1,787,653
|
)
|
|
|
(1,762,239
|
)
|
Retained earnings
|
|
5,758,234
|
|
|
|
5,596,786
|
|
Accumulated other comprehensive loss
|
|
(101,505
|
)
|
|
|
(124,883
|
)
|
Total shareholders' equity
|
|
5,099,608
|
|
|
|
4,949,255
|
|
Noncontrolling interests
|
|
49,206
|
|
|
|
48,685
|
|
Total equity
|
|
5,148,814
|
|
|
|
4,997,940
|
|
Total liabilities and equity
|
|
$
|
16,124,805
|
|
|
|
$
|
16,459,267
|
|
|
|
|
|
|
|
|
|
|
|
ARROW ELECTRONICS, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
March 31, 2018
|
|
|
April 1, 2017
|
Cash flows from operating activities:
|
|
|
|
|
|
(adjusted)
|
Consolidated net income
|
|
|
$
|
139,870
|
|
|
|
$
|
116,319
|
|
|
|
|
|
|
|
|
Adjustments to reconcile consolidated net income to net cash used
for operations:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
47,247
|
|
|
|
37,141
|
|
Amortization of stock-based compensation
|
|
|
12,994
|
|
|
|
11,575
|
|
Equity in (earnings) losses of affiliated companies
|
|
|
673
|
|
|
|
(925
|
)
|
Deferred income taxes
|
|
|
(2,818
|
)
|
|
|
13,938
|
|
Other
|
|
|
5,917
|
|
|
|
1,445
|
|
Change in assets and liabilities, net of effects of acquired and
disposed businesses:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
789,843
|
|
|
|
948,621
|
|
Inventories
|
|
|
(260,620
|
)
|
|
|
(38,185
|
)
|
Accounts payable
|
|
|
(691,818
|
)
|
|
|
(982,355
|
)
|
Accrued expenses
|
|
|
(22,087
|
)
|
|
|
(93,865
|
)
|
Other assets and liabilities
|
|
|
(94,278
|
)
|
|
|
(34,599
|
)
|
Net cash used for operating activities
|
|
|
(75,077
|
)
|
|
|
(20,890
|
)
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Cash consideration paid for acquired businesses
|
|
|
(331,467
|
)
|
|
|
—
|
|
Proceeds from disposition of businesses
|
|
|
34,291
|
|
|
|
—
|
|
Acquisition of property, plant, and equipment
|
|
|
(34,735
|
)
|
|
|
(62,118
|
)
|
Proceeds from sale of property, plant, and equipment
|
|
|
—
|
|
|
|
7,886
|
|
Other
|
|
|
(4,500
|
)
|
|
|
—
|
|
Net cash used for investing activities
|
|
|
(336,411
|
)
|
|
|
(54,232
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Change in short-term and other borrowings
|
|
|
(18,382
|
)
|
|
|
76,402
|
|
Proceeds from long-term bank borrowings, net
|
|
|
601,386
|
|
|
|
62,500
|
|
Redemption of notes
|
|
|
(300,000
|
)
|
|
|
—
|
|
Proceeds from exercise of stock options
|
|
|
4,992
|
|
|
|
17,259
|
|
Repurchases of common stock
|
|
|
(52,513
|
)
|
|
|
(68,847
|
)
|
Purchase of shares from noncontrolling interest
|
|
|
—
|
|
|
|
(23,350
|
)
|
Net cash provided by financing activities
|
|
|
235,483
|
|
|
|
63,964
|
|
Effect of exchange rate changes on cash
|
|
|
(5,434
|
)
|
|
|
(1,600
|
)
|
Net decrease in cash and cash equivalents
|
|
|
(181,439
|
)
|
|
|
(12,758
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
730,083
|
|
|
|
534,320
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
548,644
|
|
|
|
$
|
521,562
|
|
|
|
|
|
|
|
|
|
|
|
|
ARROW ELECTRONICS, INC.
|
NON-GAAP SALES RECONCILIATION
|
(In thousands)
|
(Unaudited)
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
March 31, 2018
|
|
|
April 1, 2017
|
|
|
% Change
|
|
|
|
|
|
|
(adjusted)
|
|
|
|
Consolidated sales, as reported
|
|
|
$
|
6,875,613
|
|
|
|
$
|
5,736,780
|
|
|
|
19.9
|
%
|
Impact of changes in foreign currencies
|
|
|
—
|
|
|
|
268,779
|
|
|
|
|
Impact of acquisitions
|
|
|
—
|
|
|
|
37,298
|
|
|
|
|
Impact of dispositions
|
|
|
(27,493
|
)
|
|
|
(57,907
|
)
|
|
|
|
Consolidated sales, as adjusted
|
|
|
$
|
6,848,120
|
|
|
|
$
|
5,984,950
|
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Global components sales, as reported
|
|
|
$
|
4,929,932
|
|
|
|
$
|
4,058,803
|
|
|
|
21.5
|
%
|
Impact of changes in foreign currencies
|
|
|
—
|
|
|
|
175,038
|
|
|
|
|
Impact of acquisitions
|
|
|
—
|
|
|
|
20,588
|
|
|
|
|
Global components sales, as adjusted
|
|
|
$
|
4,929,932
|
|
|
|
$
|
4,254,429
|
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Americas Components sales, as reported
|
|
|
$
|
1,796,698
|
|
|
|
$
|
1,563,545
|
|
|
|
14.9
|
%
|
Impact of changes in foreign currencies
|
|
|
—
|
|
|
|
8,118
|
|
|
|
|
Impact of acquisitions
|
|
|
—
|
|
|
|
20,588
|
|
|
|
|
Americas Components sales, as adjusted
|
|
|
$
|
1,796,698
|
|
|
|
$
|
1,592,251
|
|
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Europe components sales, as reported
|
|
|
$
|
1,478,386
|
|
|
|
$
|
1,118,279
|
|
|
|
32.2
|
%
|
Impact of changes in foreign currencies
|
|
|
—
|
|
|
|
157,602
|
|
|
|
|
Europe components sales, as adjusted
|
|
|
$
|
1,478,386
|
|
|
|
$
|
1,275,881
|
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Asia components sales, as reported
|
|
|
$
|
1,654,848
|
|
|
|
$
|
1,376,979
|
|
|
|
20.2
|
%
|
Impact of changes in foreign currencies
|
|
|
—
|
|
|
|
9,318
|
|
|
|
|
Asia components sales, as adjusted
|
|
|
$
|
1,654,848
|
|
|
|
$
|
1,386,297
|
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Global ECS sales, as reported
|
|
|
$
|
1,945,681
|
|
|
|
$
|
1,677,977
|
|
|
|
16.0
|
%
|
Impact of changes in foreign currencies
|
|
|
—
|
|
|
|
93,741
|
|
|
|
|
Impact of acquisitions
|
|
|
—
|
|
|
|
16,710
|
|
|
|
|
Impact of dispositions
|
|
|
(27,493
|
)
|
|
|
(57,907
|
)
|
|
|
|
Global ECS sales, as adjusted
|
|
|
$
|
1,918,188
|
|
|
|
$
|
1,730,521
|
|
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Europe ECS sales, as reported
|
|
|
$
|
750,270
|
|
|
|
$
|
583,334
|
|
|
|
28.6
|
%
|
Impact of changes in foreign currencies
|
|
|
—
|
|
|
|
87,855
|
|
|
|
|
Impact of acquisitions
|
|
|
—
|
|
|
|
16,710
|
|
|
|
|
Impact of dispositions
|
|
|
—
|
|
|
|
(889
|
)
|
|
|
|
Europe ECS sales, as adjusted
|
|
|
$
|
750,270
|
|
|
|
$
|
687,010
|
|
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Americas ECS sales, as reported
|
|
|
$
|
1,195,411
|
|
|
|
$
|
1,094,643
|
|
|
|
9.2
|
%
|
Impact of changes in foreign currencies
|
|
|
—
|
|
|
|
5,886
|
|
|
|
|
Impact of dispositions
|
|
|
(27,493
|
)
|
|
|
(57,018
|
)
|
|
|
|
Americas ECS sales, as adjusted
|
|
|
$
|
1,167,918
|
|
|
|
$
|
1,043,511
|
|
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARROW ELECTRONICS, INC.
|
NON-GAAP EARNINGS RECONCILIATION
|
(In thousands except per share data)
|
(Unaudited)
|
|
Three months ended March 31, 2018
|
|
|
Reported GAAP measure
|
|
Intangible amortization expense
|
|
Restructuring & Integration charges
|
|
Other*
|
|
Non-GAAP measure
|
Operating income
|
|
$
|
235,995
|
|
|
$
|
13,520
|
|
|
$
|
21,171
|
|
|
$
|
1,562
|
|
|
$
|
272,248
|
|
Income before income taxes
|
|
186,460
|
|
|
13,520
|
|
|
21,171
|
|
|
4,014
|
|
|
225,165
|
|
Provision for income taxes
|
|
46,590
|
|
|
3,604
|
|
|
5,535
|
|
|
782
|
|
|
56,511
|
|
Consolidated net income
|
|
139,870
|
|
|
9,916
|
|
|
15,636
|
|
|
3,232
|
|
|
168,654
|
|
Noncontrolling interests
|
|
776
|
|
|
153
|
|
|
—
|
|
|
—
|
|
|
929
|
|
Net income attributable to shareholders
|
|
$
|
139,094
|
|
|
$
|
9,763
|
|
|
$
|
15,636
|
|
|
$
|
3,232
|
|
|
$
|
167,725
|
|
Net income per diluted share
|
|
$
|
1.56
|
|
|
$
|
0.11
|
|
|
$
|
0.18
|
|
|
$
|
0.04
|
|
|
$
|
1.88
|
|
Effective tax rate
|
|
25.0
|
%
|
|
|
|
|
|
|
|
25.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 1, 2017 (adjusted)
|
|
|
Reported GAAP measure
|
|
Intangible amortization expense
|
|
Restructuring & Integration charges
|
|
Other**
|
|
Non-GAAP measure
|
Operating income
|
|
193,025
|
|
|
12,900
|
|
|
15,505
|
|
|
—
|
|
|
221,430
|
|
Income before income taxes
|
|
155,883
|
|
|
12,900
|
|
|
15,505
|
|
|
(1,982
|
)
|
|
182,306
|
|
Provision for income taxes
|
|
39,564
|
|
|
4,561
|
|
|
4,997
|
|
|
(765
|
)
|
|
48,357
|
|
Consolidated net income
|
|
116,319
|
|
|
8,339
|
|
|
10,508
|
|
|
(1,217
|
)
|
|
133,949
|
|
Noncontrolling interests
|
|
1,582
|
|
|
251
|
|
|
—
|
|
|
—
|
|
|
1,833
|
|
Net income attributable to shareholders
|
|
$
|
114,737
|
|
|
8,088
|
|
|
10,508
|
|
|
(1,217
|
)
|
|
132,116
|
|
Net income per diluted share
|
|
$
|
1.27
|
|
|
$
|
0.09
|
|
|
$
|
0.12
|
|
|
$
|
(0.01
|
)
|
|
$
|
1.46
|
|
Effective tax rate
|
|
25.4
|
%
|
|
|
|
|
|
|
|
26.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
* Other includes loss on disposition of businesses and gain
(loss) on investments, net.
|
** Other includes gain (loss) on investments, net.
|
|
ARROW ELECTRONICS, INC.
|
SEGMENT INFORMATION
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018
|
|
April 1, 2017
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
(adjusted)
|
Global components
|
|
|
|
|
|
|
|
|
|
|
$
|
4,929,932
|
|
|
$
|
4,058,803
|
|
Global ECS
|
|
|
|
|
|
|
|
|
|
|
1,945,681
|
|
|
1,677,977
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
$
|
6,875,613
|
|
|
$
|
5,736,780
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global components
|
|
|
|
|
|
|
|
|
|
|
$
|
229,546
|
|
|
$
|
173,533
|
|
Global ECS
|
|
|
|
|
|
|
|
|
|
|
83,806
|
|
|
82,189
|
|
Corporate (a)
|
|
|
|
|
|
|
|
|
|
|
(77,357
|
)
|
|
(62,697
|
)
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
$
|
235,995
|
|
|
$
|
193,025
|
|
|
|
|
(a)
|
|
Includes restructuring, integration, and other charges of $21.2
million and $15.5 million for the first quarter of 2018 and 2017,
respectively, as well as a net loss on the disposition of
businesses of $1.6 million for the first quarter of 2018.
|
|
|
|
NON-GAAP SEGMENT RECONCILIATION
|
|
|
|
|
|
Quarter Ended
|
|
|
March 31, 2018
|
|
|
April 1, 2017
|
|
|
|
|
|
(adjusted)
|
Global components operating income, as reported
|
|
$
|
229,546
|
|
|
|
$
|
173,533
|
Intangible assets amortization expense
|
|
8,599
|
|
|
|
7,399
|
Global components operating income, as adjusted
|
|
$
|
238,145
|
|
|
|
$
|
180,932
|
Global ECS operating income, as reported
|
|
$
|
83,806
|
|
|
|
$
|
82,189
|
Intangible assets amortization expense
|
|
4,921
|
|
|
|
5,501
|
Global ECS operating income, as adjusted
|
|
$
|
88,727
|
|
|
|
$
|
87,690
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180503005417/en/
Source: Arrow Electronics, Inc.
Arrow Electronics, Inc.
Contact:
Steven O’Brien,
303-824-4544
Vice President, Investor Relations
or
Media
Contact:
John Hourigan, 303-824-4586
Vice President, Global
Communications