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EXHIBIT 99.1
ARROW ELECTRONICS, INC.
25 HUB DRIVE
MELVILLE, NEW YORK 11747 NEWS
516/391/1300
ARROW ELECTRONICS ANNOUNCES RECORD RESULTS;
EARNINGS UP NEARLY 150%
FOR IMMEDIATE RELEASE
MELVILLE, NEW YORK, February 13, 2001 -- Arrow Electronics, Inc. (NYSE:ARW)
reported net income of $109 million ($1.09 per share on a diluted basis) on
sales of $3.7 billion in the fourth quarter, compared with net income of $44
million ($.46 per share on a diluted basis) on sales of $2.5 billion in the
fourth quarter of 1999.
"The fourth quarter set new sales and earnings records and represented the
seventh consecutive quarter of sales and earnings increases," said Francis M.
Scricco, President and Chief Executive Officer of Arrow. "This strong
performance was driven by several factors. We have a large, extremely
diversified customer base, both in terms of industries served and geographic
presence. Additionally, in the fourth quarter we began to realize some of the
benefits of our rapid and successful integration of the Wyle businesses acquired
in early October. Those acquisition benefits helped us generate higher operating
margins, more than offsetting the weakness experienced by some of the
communication sector's larger and more visible customers and their contract
manufacturing partners," he added.
Operating income for the quarter was up 2.3 percentage points to 6.7% of sales,
versus last year's 4.4%, with the improvement primarily driven by the company's
components operations. Worldwide components results for the quarter were very
strong, with sales up 67% to $2.8 billion and operating margins improving by 2.7
percentage points to 9.5%. Components revenues increased geographically as
follows: 76% in the Americas, reflecting strong organic growth as well as the
inclusion of the Wyle businesses (42% growth excluding the effect of Wyle); 74%
in Europe (excluding the effect of foreign exchange), also reflecting strong
organic growth combined with the impact of the Hatteland and Tekelec
acquisitions (42% excluding the effect of acquisitions); and 76% in the
Asia/Pacific region, reflecting strong organic growth, particularly in China.
In the computer products business, the Wyle Systems and MOCA acquisitions
expanded the breadth and depth of Arrow's offerings. Sales for this segment were
up 9.4% to $868 million, largely as a result of these acquisitions. The fourth
quarter operating margin was .8%, in line with the third quarter.
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For the total year, Arrow's net income was $357.9 million on sales of $13
billion, compared with last year's net income of $140.6 million, excluding the
special charge of $24.6 million associated with the acquisition and integration
of the electronics distribution group of Bell Industries and Richey Electronics
($16.5 million after taxes or $.17 per share on a diluted basis). Including the
second quarter special charge, net income for 1999 was $124.2 million. Earnings
per share for 2000 amounted to $3.70 ($3.62 per share on a diluted basis),
versus $1.48 ($1.46 per share on a diluted basis) for 1999, excluding the
aforementioned charge. Including the charge, earnings per share for 1999 were
$1.31 ($1.29 per share on a diluted basis).
Arrow Electronics is the world's largest distributor of electronic components
and computer products, with 2000 sales of $13 billion. Headquartered in
Melville, New York, Arrow serves as a supply channel partner for more than 600
suppliers and 175,000 original equipment manufacturers, contract manufacturers,
and commercial customers through more than 225 sales facilities and 19
distribution centers in 38 countries.
# # #
Contact: Robert E. Klatell
Executive Vice President
516-391-1300
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. This press release contains forward-looking
statements that are subject to certain risks and uncertainties which could cause
actual results or facts to differ materially from such statements for a variety
of reasons including, but not limited to: industry conditions, changes in
product supply, pricing, and customer demand, competition, other vagaries in the
computer and electronic components markets, changes in relationships with key
suppliers, and the other risks described from time to time in the company's
reports to the Securities and Exchange Commission (including the company's
Annual Report on Form 10-K). Shareholders and other readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of
the date on which they are made. The company undertakes no obligation to update
publicly or revise any forward-looking statements.
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ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
-------------------------------- -----------------------------------
(unaudited)
2000 1999 2000 1999(A)
------------ ------------ ------------ ------------
Sales $ 3,691,088 $ 2,485,168 $ 12,959,250 $ 9,312,625
------------ ------------ ------------ ------------
Costs and expenses:
Cost of products sold 3,102,152 2,129,610 10,925,309 8,011,419
Selling, general and
administrative
expenses 314,940 229,440 1,159,583 866,861
Depreciation and
amortization 27,242 17,676 90,251 71,124
Integration charge -- -- -- 24,560
------------ ------------ ------------ ------------
3,444,334 2,376,726 12,175,143 8,973,964
------------ ------------ ------------ ------------
Operating income 246,754 108,442 784,107 338,661
Equity in losses of
affiliated companies (5) (934) (2,640) (1,107)
Interest expense 64,129 28,203 171,336 106,349
------------ ------------ ------------ ------------
Earnings before income
taxes and minority
interest 182,620 79,305 610,131 231,205
Provision for income taxes 72,946 34,341 248,195 101,788
------------ ------------ ------------ ------------
Earnings before minority
interest 109,674 44,964 361,936 129,417
Minority interest 715 927 4,005 5,264
------------ ------------ ------------ ------------
Net income $ 108,959 $ 44,037 $ 357,931 $ 124,153
============ ============ ============ ============
Net income per share:
Basic $ 1.12 $ .46 $ 3.70 $ 1.31
============ ============ ============ ============
Diluted $ 1.09 $ .46 $ 3.62 $ 1.29
============ ============ ============ ============
Average number of shares outstanding:
Basic 97,658 95,198 96,707 95,123
============ ============ ============ ============
Diluted 99,847 96,251 98,833 96,045
============ ============ ============ ============
(A) Excluding the integration charge, net income and net income per share on a
basic and diluted basis were $140.6 million, $1.48, and $1.46,
respectively, for the year ended December 31, 1999.