Avnet Inc. (NYSE: AVT), Phoenix, AZ, reported sales of $4.83 billion for the second quarter fiscal 2010 ended Jan. 2, 2010, an increase of 13.2%. Organic growth was 9.6%. Profit for the second quarter was $103.9 million.
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Roy Vallee, CEO, said: “Avnet’s strong growth this quarter provides further evidence that the global economy has begun the next growth cycle as sales at both operating groups came in well above normal seasonality and our upwardly revised expectations for the quarter. This strength was widespread as all three regions in both EM and TS delivered sequential growth that was well above normal seasonality after adjusting for the extra week in the September quarter.
"Operating leverage was also strong as operating income grew nearly five times faster than revenue sequentially, driving operating income margin up 90 basis points. Return on working capital was up 887 basis points sequentially and 664 basis points year over year, driven by the sequential improvement in operating income margin coupled with record working capital velocity. This performance demonstrates the operating leverage in our financial model and the ongoing benefits of our focus on return on capital as the industry returns to growth.”
