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EXHIBIT 99.2
ARROW ELECTRONICS SETS EXPECTATIONS FOR 2001
FOR IMMEDIATE RELEASE
MELVILLE, NEW YORK, February 13, 2001 -- Francis M. Scricco, President and Chief
Executive Officer of Arrow Electronics, Inc. (NYSE:ARW) today commented upon
current business conditions and set earnings per share expectations for the
year.
"We just finished another record quarter of sales and earnings, driven largely
by our components businesses around the world," he said. "We continue to see
cancellations and rescheduled orders among a narrow slice of our customer base,
namely the large, visible telecom and networking companies and their contract
manufacturing partners, but we also see continuing strength among the balance of
our customers."
Mr. Scricco further stated that, though this weakness may slow revenue growth in
the first quarter, the breadth of Arrow's customer base and the savings still to
come from the recent Wyle integration should translate into earnings per share
for the first quarter that are approximately equal to the record $1.09 recorded
in the fourth quarter of 2000. This is, of course, before the dilutive effect of
the proposed sale of zero coupon convertible debentures announced earlier today
(expected to be 4% of earnings per share in the first quarter and 8% in the
remaining quarters of the year) and the impact of the special one-time
integration charge (approximately $10 million pretax) associated with the Wyle
acquisition, which will be recorded in the first quarter.
"Given even a modest recovery in the second half of the year, we remain
comfortable with Wall Street earnings per share expectations for the full year
(before the dilutive effect on EPS of the convertible debt offering expected to
be completed by the end of this week)," added Mr. Scricco.
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
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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 BALANCE SHEET
(In thousands)
December 31, December 31,
2000 1999
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Assets
Current assets:
Cash and short-term investments $ 55,546 $ 44,885
Accounts receivable, net 2,635,595 1,638,654
Inventories 2,972,661 1,444,929
Other 100,408 29,469
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Total current assets 5,764,210 3,157,937
Property, plant and equipment, net 316,459 223,650
Investments in affiliated companies 35,885 52,233
Cost in excess of net assets of
companies acquired, net of
amortization 1,237,099 960,770
Other assets 250,888 88,665
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$7,604,541 $4,483,255
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,567,631 $ 805,468
Accrued expenses 473,984 263,216
Short-term borrowings, including
current maturities of long-term
debt and capital lease
obligations 1,826,100 255,977
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Total current liabilities 3,867,715 1,324,661
Long-term debt and capital lease
obligations 1,730,832 1,533,421
Other 92,246 74,644
Shareholders' equity 1,913,748 1,550,529
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$7,604,541 $4,483,255
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ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
Three Months Ended Year Ended
December 31, December 31,
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(unaudited)
2000 1999 2000 1999(A)
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Sales:
Components $ 2,823,266 $ 1,692,171 $ 9,851,041 $ 6,111,605
Computer products 867,822 792,997 3,108,209 3,201,020
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Consolidated $ 3,691,088 $ 2,485,168 $ 12,959,250 $ 9,312,625
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Operating income:
Components $ 269,507 $ 115,662 $ 892,441 $ 368,510
Computer products 6,997 10,221 33,945 56,195
Corporate (29,750) (17,441) (142,279) (86,044)
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Consolidated $ 246,754 $ 108,442 $ 784,107 $ 338,661
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(A) Excluding the integration charge of $24.6 million, operating income was
$363.2 million for the year ended December 31, 1999.
The company has redefined its reportable segments to present two distinct
worldwide businesses that have different economic cycles, structures, and
competitors. Computer products include the North American Computer Products
Operations together with the company's Microtronica businesses around the world.
The prior periods have been restated for comparative purposes.