Arrow Issues Earnings Warning

Electronic News, Jan 18, 1999

Following on the heels of rival Avnet Inc., distribution giant Arrow Electronics Inc. issued a warning that its fourth quarter earnings would fall below analysts' expected earnings per share (EPS) of $.42. Based on the company's expectations, EPS for the fourth quarter, which ended in December, should be between $.30 and $.35 on a fully diluted basis.

In the previous sequential quarter, the company's EPS figure was $.37. For the fourth quarter of 1997, Arrow showed EPS of $.53. The company said Northern and Central European sales were lower than it projected. Arrow also cited continued gross margin pressure in the North American and some Asian markets as contributing factors. The company noted that its computer products division in North America performed at satisfactory levels.