Avnet (AVT) Q4 2000 earnings summary

Executive summary

• FY00 sales reached a record $9.172B, up 44% YoY, on semiconductor-market recovery and acquisition growth.

• Seven acquisitions added more than $1.7B to FY00 sales; adjusted net income rose 59% YoY to $175.5M.

• FY00 ended with a $12B-plus sales run rate for FY01; growth plans relied on organic expansion, acquisitions and alliances.

Financial highlights

• Sales were $9,172.2M vs. $6,350.0M in FY99; gross profit was $1,288.5M vs. $948.6M.

• Reported operating income was $334.0M and net income $145.1M; diluted EPS was $1.75, including $49.0M of pretax special charges.

• Excluding special items, net income was $175.5M and diluted EPS $2.11, vs. $110.5M and $1.54 in FY99.

• Adjusted operating income was $383.0M, or 4.2% of sales, vs. $242.5M and 3.8% in FY99.

Outlook and guidance

• FY01 sales run rate was above $12B, with potential for further growth from organic expansion and acquisitions.

• Electronics Marketing expected continued positive conditions, with sales growth and profitability gains supported by market strength, acquisitions and market-share gains.

• FY01 priorities included improving return on capital employed and extending global services, innovation and acquisition activity.