-- Third-Quarter Earnings Per Share of
$3.53; Non-GAAP Earnings Per Share of $4.14 – -- Revenue of
$8.01 billion in line with guidance --
Arrow Electronics, Inc. (NYSE:ARW) today reported third-quarter
2023 sales of $8.01 billion, a decrease of 14 percent year over
year. Third-quarter net income was $199 million, or $3.53 per share
on a diluted basis, compared with net income of $342 million, or
$5.27 per share on a diluted basis, in the third quarter of 2022.
Non-GAAP net income1 was $233 million, or $4.14 per share on a
diluted basis, in the third quarter of 2023, compared with non-GAAP
net income of $354 million, or $5.45 per share on a diluted basis,
in the third quarter of 2022. Both GAAP and non-GAAP earnings per
share in the third quarter of 2023 included a $0.87 benefit related
to cash received from a legal settlement in the global components
business, and a $0.31 impact for a charge taken to increase
accounts receivable reserves associated with a customer in the
global enterprise computing solutions (ECS) business.
“The company executed well amidst an inventory correction in the
semiconductor market and a softer information technology market,
delivering non-GAAP earnings per share at the high end of our
guidance range,” said Sean Kerins, Arrow’s president, and chief
executive officer.
Global components third-quarter sales of $6.25 billion reflected
a decrease of 14 percent year over year. Europe components
third-quarter sales increased 3 percent year over year, which was a
4 percent decline in constant currency. Asia-Pacific components
third-quarter sales decreased 18 percent year over year. Americas
components third-quarter sales decreased 24 percent year over year.
Global components third-quarter operating income was $379 million,
and third-quarter non-GAAP operating income was $386 million. These
results include a $62 million benefit resulting from a legal
settlement recorded as a decrease to operating expenses.
“With lead times normalizing, customer inventory remained
elevated, impacting order velocity and top-line results across most
vertical markets. Despite the market conditions, operating margins
are meaningfully higher than in prior market corrections,” said Mr.
Kerins. “We were encouraged by the level of demand creation
activity in the quarter and the continued traction of our supply
chain services offering.”
Global ECS third-quarter sales of $1.76 billion reflected a
decrease of 10 percent year over year. Europe ECS third-quarter
sales increased 2 percent year over year, which was a 5 percent
decline in constant currency. Americas ECS third-quarter sales
decreased 18 percent year over year. Global ECS third-quarter
operating income was $55 million, and third-quarter non-GAAP
operating income was $56 million. These results include a $22
million charge taken to increase accounts receivable reserves
associated with a customer.
“The mix in our ECS business continued to shift toward software
related to infrastructure and cybersecurity, as well as cloud
solutions. As a result, the business produced year-on-year billings
growth albeit with a decline in sales,” said Mr. Kerins.
“Non-GAAP earnings per share after adjusting for the legal
settlement and accounts receivable item, was at the high end of our
guidance range,” said Raj Agrawal, senior vice president and chief
financial officer. “We were pleased to generate $322 million in
cash flow from operations in the third quarter. Additionally, we
repurchased approximately $200 million of shares during the third
quarter and now have remaining purchase authorization of
approximately $622 million.”
1 A reconciliation of non-GAAP financial measures to GAAP
financial measures is presented in the reconciliation tables
included herein.
FOURTH-QUARTER 2023 OUTLOOK
- Consolidated sales of $7.50 billion to $8.10 billion, with
global components sales of $5.40 billion to $5.80 billion, and
global enterprise computing solutions sales of $2.10 billion to
$2.30 billion
- Net income per share on a diluted basis of $3.30 to $3.50, and
non-GAAP net income per share on a diluted basis of $3.61 to
$3.81
- Average tax rate in the range of 23 to 25 percent
- Average diluted shares outstanding of ~55 million
- Interest expense in the range of approximately $90 million
- Changes in foreign currencies expected to increase
year-over-year growth in sales by $54 million, and earnings per
share on a diluted basis by $0.02 compared to the fourth quarter of
2022
- Changes in foreign currencies expected to decrease
quarter-over-quarter growth in sales by $82 million and earnings
per share on a diluted basis by $0.07 compared to the third quarter
of 2023
Fourth-Quarter 2023 GAAP to
non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
Quarter Ended
Quarter Ended
December 31,
December 31,
December 31,
September 30,
(in billions)
2023
2022
% Change
2023
2023
% Change
Global components sales, GAAP
$
5.40 - 5.80
$
6.83
(21%) - (15%)
$
5.40 - 5.80
$
6.25
(14%) - (7%)
Impact of changes in foreign
currencies
—
0.03
—
(0.06
)
Global components sales, constant
currency
$
5.40 - 5.80
$
6.86
(21%) - (15%)
$
5.40 - 5.80
$
6.19
(13%) - (6%)
Global ECS sales, GAAP
$
2.10 - 2.30
$
2.50
(16%) - (8%)
$
2.10 - 2.30
$
1.76
19% - 31%
Impact of changes in foreign
currencies
—
0.02
—
(0.02
)
Global ECS sales, constant currency
$
2.10 - 2.30
$
2.52
(17%) - (9%)
$
2.10 - 2.30
$
1.74
21% - 32%
NON-GAAP EARNINGS
RECONCILIATION
Intangible amortization
Restructuring &
Reported GAAP measure
expense
integration charges
Non-GAAP measure
Net income per diluted share
$3.30 to $3.50
$0.10
$0.21
$3.61 to $3.81
CFO Commentary and Earnings
Presentation
Please refer to the CFO commentary and the earnings
presentation, which can be found at investor.arrow.com, as a
supplement to the company’s earnings release. The company uses its
website as a tool to disclose important information about the
company and to comply with its disclosure obligations under
Regulation Fair Disclosure.
Conference Call and Webcast
Information
Arrow Electronics will host a conference call to discuss
third-quarter 2023 financial results on Nov. 2, 2023, at 1:00 PM
ET. Register online at
https://conferencingportals.com/event/fEoxDDHd to obtain dial-in
information for the live conference call. The conference call will
also be available via live webcast at investor.arrow.com. Shortly
after the conclusion of the conference call, a webcast replay will
be available at investor.arrow.com.
About Arrow Electronics
Arrow Electronics guides innovation forward for over 210,000
leading technology manufacturers and service providers. With 2022
sales of $37 billion, Arrow develops technology solutions that help
improve business and daily life. Learn more at arrow.com.
Information Relating to Forward-Looking
Statements
This press release includes “forward-looking” statements, as the
term is defined under the federal securities laws, including but
not limited to statements regarding: Arrow’s future financial
performance, including its outlook on financial results for the
fourth quarter of fiscal 2023 such as sales, net income per diluted
share, non-GAAP net income per diluted share, average tax rate,
average diluted shares outstanding, interest and other expense,
impact to sales due to changes in foreign currencies, intangible
amortization expense per diluted share, restructuring &
integration charges per diluted share, and expectations regarding
market demand and shareholder returns. These and other
forward-looking statements 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: unfavorable economic conditions;
disruptions or inefficiencies in the supply chain; political
instability; impacts of military conflict and sanctions; industry
conditions; changes in product supply, pricing and customer demand;
competition; other vagaries in the global components and the global
ECS markets; deteriorating economic conditions, including economic
recession, inflation, tax rates, foreign currency exchange rates,
or the availability of capital; the effects of natural or man-made
catastrophic events; changes in relationships with key suppliers;
increased profit margin pressure; changes in legal and regulatory
matters; non-compliance with certain regulations, such as export,
antitrust, and anti-corruption laws; foreign tax and other loss
contingencies; outbreaks, epidemics, pandemics, or public health
crises; and the company's ability to generate positive cash flow.
For a further discussion of these and other factors that could
cause the company's future results to differ materially from any
forward-looking statements, see the section entitled “Risk Factors”
in the company's most recent Quarterly Report on Form 10-Q and the
company's most recent Annual Report on Form 10-K, as well as in
other filings the company makes with the Securities and Exchange
Commission. 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.
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. The company provides non-GAAP sales,
operating income, income before income taxes, provision for income
taxes, consolidated net income, noncontrolling interests, net
income attributable to shareholders, effective tax rate and net
income per share on a diluted basis, which are non-GAAP measures
adjusted for the impact of changes in foreign currencies (referred
to as “changes in foreign currencies” or “on a constant currency
basis”) by re-translating prior-period results at current period
foreign exchange rates, identifiable intangible asset amortization,
restructuring, integration, and other charges, net gains and losses
on investments, and impact of tax legislation changes. Management
believes that providing this additional information is useful to
the reader to better assess and understand the company’s operating
performance and future prospects in the same manner as management,
especially when comparing results with previous periods. Management
typically monitors the business as adjusted for these items, in
addition to GAAP results, to understand and compare operating
results across accounting periods, for internal budgeting purposes,
for short- and long-term operating plans, and to evaluate the
company's financial performance. However, analysis of results on a
non-GAAP basis should be used as a complement to, in conjunction
with, and not as a substitute for, data presented in accordance
with GAAP.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands except per share
data)
(Unaudited)
Quarter Ended
Nine Months Ended
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Sales
$
8,007,019
$
9,266,432
$
25,257,963
$
27,801,399
Cost of sales
7,027,422
8,079,520
22,098,495
24,170,769
Gross profit
979,597
1,186,912
3,159,468
3,630,630
Operating expenses:
Selling, general, and administrative
expenses
563,150
634,353
1,822,783
1,931,918
Depreciation and amortization
45,005
46,230
137,948
141,787
Restructuring, integration, and other
charges
31,359
3,635
44,252
11,027
639,514
684,218
2,004,983
2,084,732
Operating income
340,083
502,694
1,154,485
1,545,898
Equity in earnings of affiliated
companies
1,392
1,718
4,373
4,726
(Loss) gain on investments, net
(6,159
)
(3,480
)
4,649
(11,213
)
Employee benefit plan expense, net
(854
)
(890
)
(2,510
)
(2,614
)
Interest and other financing expense,
net
(82,180
)
(50,936
)
(246,672
)
(123,427
)
Income before income taxes
252,282
449,106
914,325
1,413,370
Provision for income taxes
52,241
105,500
201,168
332,273
Consolidated net income
200,041
343,606
713,157
1,081,097
Noncontrolling interests
1,382
1,207
4,189
3,615
Net income attributable to
shareholders
$
198,659
$
342,399
$
708,968
$
1,077,482
Net income per share:
Basic
$
3.57
$
5.33
$
12.43
$
16.31
Diluted
$
3.53
$
5.27
$
12.28
$
16.12
Weighted-average shares outstanding:
Basic
55,597
64,228
57,021
66,055
Diluted
56,298
64,979
57,715
66,845
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par
value)
(Unaudited)
September 30, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
333,294
$
176,915
Accounts receivable, net
10,663,164
12,322,717
Inventories
5,805,520
5,319,369
Other current assets
503,982
521,339
Total current assets
17,305,960
18,340,340
Property, plant, and equipment, at
cost:
Land
5,691
5,691
Buildings and improvements
185,790
184,211
Machinery and equipment
1,616,937
1,583,661
1,808,418
1,773,563
Less: Accumulated depreciation and
amortization
(1,272,214
)
(1,177,107
)
Property, plant, and equipment, net
536,204
596,456
Investments in affiliated companies
63,049
65,112
Intangible assets, net
134,811
159,137
Goodwill
2,021,987
2,027,626
Other assets
576,349
574,511
Total assets
$
20,638,360
$
21,763,182
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
9,090,554
$
10,460,419
Accrued expenses
1,256,815
1,339,302
Short-term borrowings, including current
portion of long-term debt
1,588,662
589,883
Total current liabilities
11,936,031
12,389,604
Long-term debt
2,615,001
3,182,964
Other liabilities
533,853
579,261
Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2023
and 2022
Issued - 125,424 shares in both 2023 and
2022
125,424
125,424
Capital in excess of par value
1,205,788
1,208,708
Treasury stock (71,269 and 66,175 shares
in 2023 and 2022, respectively), at cost
(5,307,441
)
(4,637,345
)
Retained earnings
9,923,800
9,214,832
Accumulated other comprehensive loss
(462,310
)
(365,262
)
Total shareholders’ equity
5,485,261
5,546,357
Noncontrolling interests
68,214
64,996
Total equity
5,553,475
5,611,353
Total liabilities and equity
$
20,638,360
$
21,763,182
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
Quarter Ended
September 30, 2023
October 1, 2022
Cash flows from operating activities:
Consolidated net income
$
200,041
$
343,606
Adjustments to reconcile consolidated net
income to net cash provided by operations:
Depreciation and amortization
45,005
46,230
Amortization of stock-based
compensation
6,519
3,773
Equity in earnings of affiliated
companies
(1,392
)
(1,718
)
Deferred income taxes
(19,639
)
8,152
Loss on investments, net
6,159
3,480
Other
1,092
307
Change in assets and liabilities:
Accounts receivable, net
260,749
(594,767
)
Inventories
(383,647
)
(255,871
)
Accounts payable
157,482
482,061
Accrued expenses
127,235
132,636
Other assets and liabilities
(77,897
)
(26,823
)
Net cash provided by operating
activities
321,707
141,066
Cash flows from investing activities:
Acquisition of property, plant, and
equipment
(20,670
)
(18,536
)
Proceeds from collections of notes
receivable
—
263
Net cash used for investing activities
(20,670
)
(18,273
)
Cash flows from financing activities:
Change in short-term and other
borrowings
603,693
(19,506
)
(Repayments of) proceeds from long-term
bank borrowings, net
(557,308
)
328,268
Proceeds from exercise of stock
options
443
762
Repurchases of common stock
(203,491
)
(241,291
)
Net cash (used for) provided by financing
activities
(156,663
)
68,233
Effect of exchange rate changes on
cash
(51,462
)
(82,637
)
Net increase in cash and cash
equivalents
92,912
108,389
Cash and cash equivalents at beginning of
period
240,382
225,596
Cash and cash equivalents at end of
period
$
333,294
$
333,985
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30, 2023
October 1, 2022
Cash flows from operating activities:
Consolidated net income
$
713,157
$
1,081,097
Adjustments to reconcile consolidated net
income to net cash provided by (used for) operations:
Depreciation and amortization
137,948
141,787
Amortization of stock-based
compensation
34,868
35,009
Equity in earnings of affiliated
companies
(4,373
)
(4,726
)
Deferred income taxes
(53,038
)
1,468
(Gain) loss on investments, net
(4,649
)
11,213
Other
4,078
2,673
Change in assets and liabilities:
Accounts receivable, net
1,585,521
(628,974
)
Inventories
(525,020
)
(1,011,763
)
Accounts payable
(1,355,777
)
166,602
Accrued expenses
(88,348
)
192,759
Other assets and liabilities
(25,660
)
(128,909
)
Net cash provided by (used for) operating
activities
418,707
(141,764
)
Cash flows from investing activities:
Acquisition of property, plant, and
equipment
(57,775
)
(54,780
)
Proceeds from collections of notes
receivable
237
20,805
Proceeds from settlement of net investment
hedge
10,725
—
Net cash used for investing activities
(46,813
)
(33,975
)
Cash flows from financing activities:
Change in short-term and other
borrowings
802,032
276,516
(Repayments of) proceeds from long-term
bank borrowings, net
(566,734
)
1,238,268
Net proceeds from note offering
496,268
—
Redemption of notes
(300,000
)
(350,000
)
Proceeds from exercise of stock
options
16,824
16,434
Repurchases of common stock
(719,708
)
(725,254
)
Settlement of forward-starting interest
rate swap
56,711
—
Other
(142
)
(137
)
Net cash (used for) provided by financing
activities
(214,749
)
455,827
Effect of exchange rate changes on
cash
(766
)
(168,297
)
Net increase in cash and cash
equivalents
156,379
111,791
Cash and cash equivalents at beginning of
period
176,915
222,194
Cash and cash equivalents at end of
period
$
333,294
$
333,985
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
September 30, 2023
October 1, 2022
% Change
Consolidated sales, as reported
$
8,007,019
$
9,266,432
(13.6
)%
Impact of changes in foreign
currencies
—
145,732
Consolidated sales, constant currency
$
8,007,019
$
9,412,164
(14.9
)%
Global components sales, as reported
$
6,245,192
$
7,300,347
(14.5
)%
Impact of changes in foreign
currencies
—
96,433
Global components sales, constant
currency
$
6,245,192
$
7,396,780
(15.6
)%
Americas components sales, as reported
$
1,869,934
$
2,445,647
(23.5
)%
Impact of changes in foreign
currencies
—
32
Americas components sales, constant
currency
$
1,869,934
$
2,445,679
(23.5
)%
Asia components sales, as reported
$
2,387,835
$
2,918,873
(18.2
)%
Impact of changes in foreign
currencies
—
(27,584
)
Asia components sales, constant
currency
$
2,387,835
$
2,891,289
(17.4
)%
Europe components sales, as reported
$
1,987,423
$
1,935,827
2.7
%
Impact of changes in foreign
currencies
—
123,985
Europe components sales, constant
currency
$
1,987,423
$
2,059,812
(3.5
)%
Global ECS sales, as reported
$
1,761,827
$
1,966,085
(10.4
)%
Impact of changes in foreign
currencies
—
49,299
Global ECS sales, constant currency
$
1,761,827
$
2,015,384
(12.6
)%
Americas ECS sales, as reported
$
1,015,924
$
1,234,158
(17.7
)%
Impact of changes in foreign
currencies
—
(3,105
)
Americas ECS sales, constant currency
$
1,015,924
$
1,231,053
(17.5
)%
Europe ECS sales, as reported
$
745,903
$
731,927
1.9
%
Impact of changes in foreign
currencies
—
52,404
Europe ECS sales, constant currency
$
745,903
$
784,331
(4.9
)%
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Nine Months Ended
September 30, 2023
October 1, 2022
% Change
Consolidated sales, as reported
$
25,257,963
$
27,801,399
(9.1
)%
Impact of changes in foreign
currencies
—
(74,613
)
Consolidated sales, constant currency
$
25,257,963
$
27,726,786
(8.9
)%
Global components sales, as reported
$
19,783,867
$
21,960,974
(9.9
)%
Impact of changes in foreign
currencies
—
(68,284
)
Global components sales, constant
currency
$
19,783,867
$
21,892,690
(9.6
)%
Americas components sales, as reported
$
6,169,949
$
7,265,552
(15.1
)%
Impact of changes in foreign
currencies
—
(2,265
)
Americas components sales, constant
currency
$
6,169,949
$
7,263,287
(15.1
)%
Asia components sales, as reported
$
7,226,871
$
9,024,188
(19.9
)%
Impact of changes in foreign
currencies
—
(115,290
)
Asia components sales, constant
currency
$
7,226,871
$
8,908,898
(18.9
)%
Europe components sales, as reported
$
6,387,047
$
5,671,234
12.6
%
Impact of changes in foreign
currencies
—
49,271
Europe components sales, constant
currency
$
6,387,047
$
5,720,505
11.7
%
Global ECS sales, as reported
$
5,474,096
$
5,840,425
(6.3
)%
Impact of changes in foreign
currencies
—
(6,329
)
Global ECS sales, constant currency
$
5,474,096
$
5,834,096
(6.2
)%
Americas ECS sales, as reported
$
3,014,544
$
3,442,803
(12.4
)%
Impact of changes in foreign
currencies
—
(19,051
)
Americas ECS sales, constant currency
$
3,014,544
$
3,423,752
(12.0
)%
Europe ECS sales, as reported
$
2,459,552
$
2,397,622
2.6
%
Impact of changes in foreign
currencies
—
12,722
Europe ECS sales, constant currency
$
2,459,552
$
2,410,344
2.0
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS
RECONCILIATION
(In thousands except per share
data)
(Unaudited)
Three months ended September 30,
2023
Reported
Intangible
Restructuring
GAAP
amortization
& Integration
Non-GAAP
measure
expense
charges(1)
Other(2)
measure
Operating income
$
340,083
$
7,863
$
31,359
$
—
$
379,305
Income before income taxes
252,282
7,863
31,359
6,159
297,663
Provision for income taxes
52,241
1,959
7,321
1,476
62,997
Consolidated net income
200,041
5,904
24,038
4,683
234,666
Noncontrolling interests
1,382
138
—
—
1,520
Net income attributable to
shareholders
$
198,659
$
5,766
$
24,038
$
4,683
$
233,146
Net income per diluted share (3)
$
3.53
$
0.10
$
0.43
$
0.08
$
4.14
Effective tax rate (4)
20.7
%
21.2
%
Three months ended October 1,
2022
Reported
Intangible
Restructuring
GAAP
amortization
& Integration
Non-GAAP
measure
expense
charges(1)
Other(2)
measure
Operating income
$
502,694
$
8,674
$
3,635
$
—
$
515,003
Income before income taxes
449,106
8,674
3,635
3,480
464,895
Provision for income taxes
105,500
2,219
892
841
109,452
Consolidated net income
343,606
6,455
2,743
2,639
355,443
Noncontrolling interests
1,207
125
—
—
1,332
Net income attributable to
shareholders
$
342,399
$
6,330
$
2,743
$
2,639
$
354,111
Net income per diluted share (3)
$
5.27
$
0.10
$
0.04
$
0.04
$
5.45
Effective tax rate (4)
23.5
%
23.5
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS
RECONCILIATION
(In thousands except per share
data)
(Unaudited)
Nine months ended September 30,
2023
Reported
Intangible
Restructuring
GAAP
amortization
& Integration
Non-recurring
Non-GAAP
measure
expense
charges(1)
tax items
Other(2)
measure
Operating income
$
1,154,485
$
23,751
$
44,252
$
—
$
—
$
1,222,488
Income before income taxes
914,325
23,751
44,252
—
(4,649
)
977,679
Provision for income taxes
201,168
5,961
10,638
(942
)
(1,114
)
215,711
Consolidated net income
713,157
17,790
33,614
942
(3,535
)
761,968
Noncontrolling interests
4,189
408
—
—
—
4,597
Net income attributable to
shareholders
$
708,968
$
17,382
$
33,614
$
942
$
(3,535
)
$
757,371
Net income per diluted share (3)
$
12.28
$
0.30
$
0.58
$
0.02
$
(0.06
)
$
13.12
Effective tax rate (4)
22.0
%
22.1
%
Nine months ended October 1,
2022
Reported
Intangible
Restructuring
GAAP
amortization
& Integration
Non-recurring
Non-GAAP
measure
expense
charges(1)
tax items
Other(2)
measure
Operating income
$
1,545,898
$
26,522
$
11,027
$
—
$
—
$
1,583,447
Income before income taxes
1,413,370
26,522
11,027
—
11,213
1,462,132
Provision for income taxes
332,273
6,792
2,459
—
2,711
344,235
Consolidated net income
1,081,097
19,730
8,568
—
8,502
1,117,897
Noncontrolling interests
3,615
398
—
—
—
4,013
Net income attributable to
shareholders
$
1,077,482
$
19,332
$
8,568
$
—
$
8,502
$
1,113,884
Net income per diluted share (3)
$
16.12
$
0.29
$
0.13
$
—
$
0.13
$
16.66
Effective tax rate (4)
23.5
%
23.5
%
____________________
(1) Includes charges to increase the
environmental remediation reserves in the amount of $20.9 million
and $23.3 million for third quarter and first nine months of 2023,
respectively and $1.9 million and $2.2 million for the third
quarter and first nine months of 2022, respectively.
(2) Other includes (gain) loss on
investments, net.
(3) The sum of the components for non-GAAP
diluted EPS, as adjusted may not agree to totals, as presented, due
to rounding.
(4) The items as shown in this table,
represent the reconciling items for the tax rate as reported and as
a non-GAAP measure.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Quarter Ended
Nine Months Ended
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Sales:
Global components
$
6,245,192
$
7,300,347
$
19,783,867
$
21,960,974
Global ECS
1,761,827
1,966,085
5,474,096
5,840,425
Consolidated
$
8,007,019
$
9,266,432
$
25,257,963
$
27,801,399
Operating income (loss):
Global components (a)
$
379,053
$
494,587
$
1,177,906
$
1,518,423
Global ECS (b)
54,624
83,976
221,951
253,744
Corporate (c)
(93,594
)
(75,869
)
(245,372
)
(226,269
)
Consolidated
$
340,083
$
502,694
$
1,154,485
$
1,545,898
(a)
Global components operating income
includes $62.2 million in settlement charges recorded as a
reduction to operating expense for the third quarter and first nine
months of 2023. Charges to increase the allowance for credit losses
increased $16.8 million and $11.0 million for the third quarter and
first nine months of 2023, respectively, relative to the
year-earlier periods.
(b)
Global ECS operating income includes
charges to increase the allowance for credit losses, which
increased by $20.0 million and $26.8 million for the third quarter
and first nine months of 2023, respectively, relative to the
year-earlier periods.
(c)
Corporate operating loss includes
restructuring, integration, and other charges of $31.4 million and
$44.3 million for the third quarter and first nine months of 2023,
respectively, and $3.6 million and $11.0 million for the third
quarter and first nine months of 2022, respectively.
NON-GAAP SEGMENT
RECONCILIATION
Quarter Ended
Nine Months Ended
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Global components operating income, as
reported
$
379,053
$
494,587
$
1,177,906
$
1,518,423
Intangible assets amortization expense
6,640
6,691
20,064
20,303
Global components non-GAAP operating
income
$
385,693
$
501,278
$
1,197,970
$
1,538,726
Global ECS operating income, as
reported
$
54,624
$
83,976
$
221,951
$
253,744
Intangible assets amortization expense
1,223
1,983
3,687
6,219
Global ECS non-GAAP operating income
$
55,847
$
85,959
$
225,638
$
259,963
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102315638/en/
Investors: Anthony Bencivenga, Vice President, Investor
Relations 303-566-7456
Media: John Hourigan, Vice President, Public Affairs and
Corporate Marketing 303-824-4586
Arrow Electronics (NYSE:ARW)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Arrow Electronics (NYSE:ARW)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024