Avnet's profit dives; layoffs planned

  Avent is my favorite supplier of chips, chips like ICs or Integerated Circuits. But don't cry too hard. They are a big supplier of the defense industry. I guess defense industry is one of those oxymorons. Defense my ass, it supplies the American War Machine which has murdered 100,000's and more likely millions of Iraqi and Vietnamese civilians in the last two illegal and unconstitutional American Empire wars.


Avnet's profit dives; layoffs planned

by Andrew Johnson - Apr. 24, 2009 12:00 AM

The Arizona Republic

Soft demand for electronic parts drove down third-quarter revenue and net income for technology distributor Avnet Inc., and the company warned it expects market conditions to remain weak for the foreseeable future.

The declines prompted the Phoenix-based Fortune 500 firm to announce $25 million in cost-cutting measures, mostly in the form of layoffs.

The cost cuts, which the company expects to make by the end of September, bring the total of such measures announced since March 2008 to $225 million.

Chief Financial Officer Ray Sadowski said Thursday that he did not know how many positions would be cut. Avnet, which distributes semiconductors, computer servers and software to resellers, equipment manufacturers and other customers, employs about 2,200 workers in Arizona and 12,000 worldwide.

The company's net income fell 83.2 percent to $18 million, or 12 cents per diluted share, in the fiscal third quarter that ended March 28. Sales fell 16.3 percent year over year to $3.7 billion. Analysts polled by Thomson Financial predicted Avnet would earn 31 cents per share on $3.61 billion in sales.

Avnet anticipates sales of $3.35 billion to $3.95 billion and earnings per share of 30 cents to 38 cents in the current quarter, Sadowski said in a conference call with analysts.

Avnet's shares closed down 93 cents, or 4.8 percent, at $18.34 on Thursday.


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