Arrow Electronics, Inc. · NYSE:ARW
Arrow Electronics — Q2 2014 Earnings Presentation
7 slides from Arrow Electronics's earnings presentation, Jul 29, 2014
Slide 1: Americas Components Region
Leading indicators, including lead times and cancellation rates, are in line with historical norms Book-to-bill was 1.04 Gross profit dollars increased 6% year over year and were up 2% sequentially Sales growth and an improvement in European gross margin drove the improvement year over year Gross ma
Slide 2: Europe Components Region
Good growth in the medical and lighting verticals year over year In line with normal seasonality on a sequential basis Looking ahead to the third quarter, we expect sales in our core Americas components business to be in line with seasonality Europe Components Region
Slide 3: Asia Pacific Components Region
Sales increased 9% year over year and were flat sequentially Adjusted for the impact of acquisitions and changes in foreign currencies, sales increased 3% year over year and decreased 1% sequentially Good growth in the automotive vertical year over year Sequential sales in line with traditional seas
Slide 4: Global Enterprise Computing Solutions
Robust growth in the transportation vertical and good growth in the wireless vertical year over year Sequential sales toward the low end of traditional seasonality Looking ahead to the third quarter, we expect sales in our core Asia Pacific components business to be above the midpoint of our seasona
Slide 5: ECS America
Gross margin was up 40 basis points year over year due to improvement in the Europe region Operating margin of 4.8% Up 40 basis points year over year, driven by a greater mix of higher margin software and our efficiency efforts Operating income increased 20% year over year Return on working capital
Slide 6: ECS Europe
Growth in software was offset by decline in proprietary servers Looking ahead to the third quarter, we expect sales in our core Americas value-added computing solutions business to be in line with seasonality ECS Europe
Slide 7: Cash Flow and Balance Sheet Highlights
Adjusted for the impact of acquisitions and changes in foreign currencies, sales decreased 1% year over year Growth in software and services were offset by decline in proprietary servers Looking ahead to the third quarter, we expect sales in our core European value-added computing solutions business