Arrow Electronics reported its 2024 third quarter financial results on Oct. 31, showing a considerable decline in year-over-year sales and net profit.

The Centennial, CO-based distributor posted total 3Q24 sales of $6.82 billion, down 15% year-over-year.

In the company’s two business units:

• Global Component 3Q sales of $4.95 billion fell 21% year-over-year, while operating profit of $189 million was essentially half of the $379 million of a year earlier. Americas sales fell 12%, EMEA sales fell 35% and Asia-Pacific sales fell 15%.
• Global Enterprise Computing Solutions 3Q sales of $1.88 billion increased 7% year-over-year, while operating profit of $76 million topped the $55 million of a year earlier. Americas sales increased 2% and EMEA sales increased 13%.

“In the third quarter, the company continued to execute well in a challenging environment. While the cyclical correction continues in our global components business, we saw enterprise IT spending gain momentum,” Arrow President and CEO Sean Kerins said. 

Arrow’s 3Q gross margin of 11.5% fell 70 basis points from a year earlier. Operating profit of $175 million fell by nearly half of the $340 million of a year earlier, while net profit of $101 million likewise halved from the $200 million of a year earlier.

“In our global components business, the broader ecosystem inventory correction persists,” Kerins added. “Given the market environment, we remain focused on our suppliers and customers while managing the operational factors within our control. We saw better momentum and strong sales growth in our global ECS business, highlighted by a healthy market for hybrid cloud solutions, steady market dynamics in Europe, and an improving trajectory for us in North America.”

Arrow Electronics was No. 1 on MDM’s 2024 Top Distributors List for Electronics.

In providing its updated 4Q24 outlook, Arrow said it is expecting sales of $6.67 billion-$7.27 billion