PHOENIX -- Avnet, Inc. (NYSE:AVT) today announced results for the fourth quarter and fiscal year ended June 30, 2012:
Sales for the fiscal year ended June 30, 2012 decreased 3.1% from the prior fiscal year to $25.7 billion; pro forma revenue was down 4.4% year over year and 4.1% in constant currency
Adjusted operating income of $958 million, 3.7% of sales, decreased 4.9% year over year
Adjusted diluted earnings per share of $4.06 decreased 6.0% year over year; GAAP diluted earnings per share was $3.79, down 12.7% year over year
Cash flow from operations increased 90% year over year to $529 million
Rick Hamada, Chief Executive Officer, commented, "Our fiscal 2012 results reflect the impact of both a components supply chain correction that occurred in the earlier part of the year followed by slowing global economic growth during the latter part of the year. Despite these challenges, I believe our team executed and responded well, remaining focused on our long-term goals while making timely adjustments as necessary based on the environment.
"The market for electronic components was negatively impacted by the post-recovery inventory correction while IT spending growth contracted as global GDP growth rates slowed. As a result, we initiated expense reductions in the parts of the portfolio most impacted by these developments. These initiatives helped offset the impact of the revenue decline and, for the full fiscal year, we generated $958 million of adjusted operating income and $529 million of cash flow from operations.
"Supported by this strong cash flow, we invested $318 million in our stock repurchase program and another $313 million in value-creating M&A that strengthened our competitive position in key markets. With the heightened level of uncertainty around global economic growth, we enter fiscal 2013 poised to execute on our growth strategies yet will continue to manage the portfolio and react quickly to market conditions in order to continue to progress toward our long-term margin and return goals."
Q4 Fiscal 2012 Results:
Sales for the quarter ended June 30, 2012 decreased 8.8% year over year, to $6.31 billion; pro forma revenue was down 11.8% year over year and 8.9% in constant currency
Adjusted operating income decreased 13.7% year over year due to the decline in revenue and a lower mix of sales from the EM EMEA region, which had record profitability in the fourth quarter of fiscal 2011
Adjusted net income declined 23.3% year over year due to the decline in operating income and a loss in other income primarily driven by losses on foreign currency exchange rates as compared with a gain in the prior year quarter
Adjusted diluted earnings per share declined 18.9% year over year to $0.99 as the decline in adjusted net income was somewhat offset by a lower share count as a result of the Company's share repurchase program
Mr. Hamada, continued, "Our Q4 revenues came in below our original expectations at both operating groups as customers grew more cautious towards the end of the quarter. As a result of this unexpected shortfall, revenue of $6.31 billion ended up being roughly flat with the March quarter and down 8.8% from the prior year quarter with approximately one-third of the year-over-year decline due to the translation impact of currency. Despite these developments, both our gross profit and operating income margins held essentially flat sequentially, although operating income margin was down year over year due to EM, which had record profitability in the significantly stronger year ago quarter.
"At TS, margins were up year over year as we continue to focus on leveraging acquisitions and improving performance across the portfolio. Given our revised outlook on current growth expectations, we are in the process of taking steps to further align our resources just as we have done throughout fiscal 2012. With our expanded geographic coverage, extensive line card and the best team in the industry, we plan to leverage our assets to grow faster than the markets we serve and grow economic profits going forward."