Slide 1: Third-Quarter 2011 CFO Commentary
Exhibit 99.2 Third-Quarter 2011 CFO Commentary As reflected in our earnings release, there are a number of items that impact the comparability of our results with those in the trailing quarter and the third quarter of last year. Any discussion of our results will exclude these items to give you a be
Slide 2: Consolidated Overview – Third Quarter
Consolidated Overview – Third Quarter P&L Highlights – ($ in millions, except per share data, may reflect rounding) Y/Y Change Q/Q 3Q11 Y/Y Change Pro forma Change Sales $5,187 +11% +2% -6% Gross Profit Margin 13.7% +60bps Flat -20bps Operating Exp/Sales 9.5% +70bps Flat +20bps Operating Income $218
Slide 3: Global Components
Global Components $2,989 2,541 $3,438 $3,649 Q3-08 Q3-09 Q3-10 Q3-11 Sales ($ in millions) ● Sales increased 6% year over year and were down 6% sequentially o Sales below normal seasonality on a sequential basis o Pro forma for acquisitions and excluding FX, sales decreased 6% year over year and 5%
Slide 4: Americas Components Region
Americas Components Region $1,077 $905 $1,365 $1,476 Q3-08 Q3-09 Q3-10 Q3-11 Sales ($ in millions) ● Sales increased 8% year over year and decreased 6% sequentially o Pro forma for acquisitions, sales decreased 4% year over year and were below normal seasonality on a sequential basis ● Operating inc
Slide 5: Europe Components Region
Europe Components Region $1,000 $697 $1,058 $1,195 Q3-08 Q3-09 Q3-10 Q3-11 Sales ($ in millions) ● Sales increased 13% year over year and declined 8% sequentially o Pro forma for acquisitions and excluding FX, sales increased 1% year over year and declined 6% sequentially o Sequentially, sales growt
Slide 6: Asia Pacific Components Region
Asia Pacific Components Region $912 $939 $1,015 $978 Q3-08 Q3-09 Q3-10 Q3-11 Sales ($ in millions) ● Sales declined 4% year over year and 4% sequentially o Pro forma for acquisitions, sales decreased 11% year over year and 4% sequentially o Below normal seasonality on a sequential basis o Mobile-han
Slide 7: Global Enterprise Computing Solutions
Global Enterprise Computing Solutions $1,306 $1,131 $1,220 $1,538 Q3-08 Q3-09 Q3-10 Q3-11 Sales ($ in millions) ● Sales increased 26% year over year and declined 8% sequentially o Record third quarter revenue o Pro forma and excluding FX, sales increased 13% year over year and decreased 8% sequentia
Slide 8: ECS America
ECS America $965 $857 $913 $1,102 Q3-08 Q3-09 Q3-10 Q3-11 Sales ($ in millions) ● Sales increased 21% year over year and declined 5% sequentially o Pro forma for acquisitions, sales increased 12% year over year and decreased 6% sequentially ● Sales growth in line with normal seasonality on a sequent
Slide 9: ECS Europe
ECS Europe $341 $274 $307 $436 Q3-08 Q3-09 Q3-10 Q3-11 Sales ($ in millions) ● Sales increased 42% year over year and declined 13% sequentially o Pro forma and excluding FX, sales increased 17% year over year and declined 11% sequentially ● Sales growth in line with normal seasonality on a sequentia
Slide 10: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights ● Working Capital We continue to effectively manage all levers of our working capital and working capital to sales of $.15 is within our long-term target range. Return on working capital of 27.8% is a near record third-quarter level. ● Return on Invested Capita
Slide 11: Fourth-Quarter 2011 Guidance
Fourth-Quarter 2011 Guidance ● Consolidated Sales $5.29Bn to $5.69Bn o Global Components $3.29Bn to $3.49Bn o Global ECS $2.0Bn to $2.2Bn ● Diluted EPS $1.25 to $1.37 Our guidance assumes that the average Euro to USD exchange rate for the third quarter is 1.38 to 1. In the fourth quarter, we would e
Slide 12: Arrow Electronics Revenue Seasonality
Arrow Electronics Revenue Seasonality* Core Global Components** GLOBAL GLOBAL NAC EUR ex FX A/P COMPONENTS COMP ex FX Q1 Flat to +2% +13% Flat to -13% +2% to +4% +3% to +5% Q2 Flat to -3% -2% to -7% +3% to +14% +1% to -1% Flat to -1% Q3 Flat to -2% Flat to -10% +15% to +20% +2% to +3% Flat to +2% Q4
Slide 13: Risk Factors
Risk Factors The discussion of the company’s business and operations should be read together with the risk factors contained in Item 1A of its 2010 Annual Report on Form 10-K, filed with the Securities and Exchange Commission, which describe various risks and uncertainties to which the company is or
Slide 14: Earnings Reconciliation
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, operating income, net income attributable to shareholders and net income per basic and diluted share determined in accordance with GAAP. Analysis o
Slide 15: Restructuring, Integration, and Other Charges
Q3-10 Restructuring, Integration, and Other Charges: During the third quarter of 2010, the company recorded restructuring, integration, and other charges of $14.3 million ($9.5 million net of related taxes or $.08 per share on both a basic and diluted basis) primarily related to initiatives taken by