It is no big news, both Avnet and Ingram Micro have seen several quarters of sales doom as they start their M&A activity.
Ingram’s Q3, which ended 1 October, net profits jumped 21 per cent annually to $78.5m (£64.4m) on sales which were down three per cent over the same period to $10.2 billion. Ingram is becoming part of the Chinese giant HNA. It did not hold a Q3 earnings call or provide a financial outlook for that reason.
Tts CEO Alain Monié did say the third quarter had been seen “robust improvement in gross and operating margins.”
“We see further stabilisation in market demand across most of the globe and our teams continue to leverage our investments in productivity and services to deliver improved bottom-line results and growth in a number of areas as we benefit from the broadest solutions portfolio and widest geographic reach in the industry,” he added.
Avnet is trying to sell its Technology Solutions arm to Tech Data. For the combined business, including TS, net profit fell 47.1 per cent annually to $68.8m, on sales which slumped 13 per cent over the same period to $6bn.
This means that TS performed “below expectations”, with sales falling 21.2 per cent annually to $1.87bn.
CEO William Ameilo said Avnet’s future without TS looks bright.
“In summary, the sale of TS allows us to focus on electronic components business, to which we just added unique capability with the acquisition of Premier Farnell while providing significant capital to strengthen our balance sheet and fund future growth,” he said.