Electronic components distributor Avnet (Phoenix) reported its 2024 third quarter (Jan. 1-March 31) financial results on May 1, showing that sales decelerated further amid what the company cited as economic softness and lower market demand.

Avnet posted total 3Q sales of $5.7 billion, down 13.2% year-over-year, and down 8% from 2Q. Americas sales of $1.4 billion fell 18% year-over-year, EMEA sales of $2.05B fell 14% and Asia sales of $2.2 billion fell 9%. By business unit in 2Q, Electronic Components sales of $5.2 billion fell 13.4% year-over-year (-9.7% from 2Q) and Farnell sales of $408 million were down 10.4% year-over-year (+3.8% from 2Q).

Avnet’s 3Q gross margin of 11.8% fell 62 basis points year-over-year, and ticked up 46 bps from 2Q. Operating profit of $190 million fell 39.4% year-over-year, while operating margin of 3.4% trailed the 3.8% of 2Q and the 4.8% of 3Q23.

The company’s 3Q total profit $89 million was less than half of the $187 million of a year earlier, and trailed 2Q’s $118 million.

“In the third quarter, we delivered results that were in line with our expectations, amidst economic softness and lower demand in the markets we serve,” Avnet CEO Phil Gallagher said in the company’s financial release. “I am proud of our team’s effort to deliver robust cash flow from operations as the benefits from our countercyclical balance sheet started to take effect this quarter.”