Arrow Electronics, Inc. (NYSE: ARW) today reported first-quarter sales in 2022 of $ 9.07 billion, an 8 percent increase in sales of $ 8.39 billion in the first quarter of 2021. Net profit for the first quarter was $ 365 million , or $ 5.31 per diluted share, compared to a net profit of $ 206 million, or $ 2.72 per diluted share, in the first quarter of 2021. Non-GAAP Non-GAAP Net Income1 was $ 373 million, or $ 5.43 per diluted share, in the first quarter of 2022, compared to a non-GAAP net income of $ 216 million, or $ 2.84 per share, on a reduced basis. value, in the first quarter of 2021
“Arrow’s unwavering commitment to our customers’ success continues to drive the expansion of our own supply chain business as a service, designed and engineered solutions to increase value and securely manage critical software workloads,” said Michael J. Long, chairman, president and CEO. “At Arrow, we continue to improve the solutions and services we provide as the markets we serve change at an ever-increasing rate. Our record results this quarter show that we remain on the curve, supported by the best team in the industry. We expect supply of components to remain well below demand in the coming quarters and for most of 2022.
Global sales of components for the first quarter of $ 7.20 billion reflected an increase of 12 percent year on year, and sales without GAAP increased by 13 percent during the year. Sales of Asia-Pacific components fell 8 percent year-on-year in the first quarter. Sales of US components in the first quarter increased by 38 percent year on year. Sales of European components in the first quarter increased by 23 percent on an annual basis, and sales of non-GAAP in the region increased by 31 percent on an annual basis. Operating revenue for global components for the first quarter was $ 499 million, and operating revenue for the first quarter outside GAAP was $ 506 million.
“The current market environment has allowed the global component business to demonstrate our industry experience and knowledge, making us uniquely positioned to help our customers meet today’s challenges. This includes helping to mitigate production risks and facilitate the continuous flow of products on the market, ”said Mr Long.
Sales of global corporate computing solutions (“ECS”) for the first quarter of $ 1.88 billion reflected a decline of 3 percent year on year, and sales without GAAP decreased by 1 percent during the year. Sales of enterprise computing solutions in Europe rose 5 percent year-over-year in the first quarter, while non-GAAP sales in the region rose 11 percent year-on-year. Sales of enterprise computer solutions in America fell 9 percent year-over-year in the first quarter. Operating revenue for global enterprise computing solutions for the first quarter was $ 86 million, and operating revenue for the first quarter that was not in accordance with GAAP was $ 88 million.
“Demand for sophisticated IT solutions continues to grow and we expect to see significant growth in this area when short-term project delays and work-in-progress arising from supply chain challenges are resolved,” Long said.
“Our return on investment remains favorable, and leverage ratios are close to their lowest levels in ten years,” said Rick Seidlitz, vice president and interim chief financial officer. “Our strong profitability and the efficient management of our balance sheet have allowed us to fulfill our commitment to return shareholder cash by repurchasing approximately $ 250 million in shares for the fourth consecutive quarter, with the total amount returned to shareholders in the last 12 months. approximately $ 1 billion. Our current redemption permit is approximately $ 513 million.
1 The reconciliation of non-GAAP financial measures, including sales, gross profit, operating income, net shareholder income and net earnings per share, with GAAP financial measures is presented in the reconciliation tables included here.
FORECASTS FOR THE SECOND QUARTER OF 2022
- Consolidated sales of $ 9.04 billion to $ 9.64 billion, with global component sales of $ 7.29 billion to $ 7.59 billion and global sales of enterprise computing solutions from $ 1.75 billion to $ 2.05 billion
- Net diluted earnings per share from $ 5.32 to $ 5.48 and net earnings per non-GAAP diluted earnings per share from $ 5.48 to $ 5.64
- Average tax rate of approximately 23.5 percent compared to the long-term range of 23 to 25 percent
- Average diluted shares in circulation of 67 million
- Interest expense of approximately $ 36 million
- An average USD to EUR exchange rate is expected from $ 1.08 to € 1; changes in foreign currencies to reduce sales by approximately $ 300 million and earnings per share on a diluted basis of $ 0.20 compared to the second quarter of 2021.
The full edition and tables can be found here.
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