Avnet 2000 Annual Report Download - page 3

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Powered by the dual engines of organic
growth and acquisitions, Avnet is a
Global Industry Leader. What a year! Fiscal 2000 has truly been a watershed year for
Avnet. Record sales. Record earnings. Strategic, unprecedented
acquisitions around the world. Exciting Internet alliances expand our reach into the
greater global technology marketspace. Avnet is in a global leadership position.
Driven by the cyclical upswing in the semiconductor industry, post-Y2K recovery in the
computer market and strong acquisition growth, Avnet achieved $9.2 billion in sales this
fiscal year, a 44 percent increase over last year. The Company saw its first billion-dollar
sales month in March. Considering results before special charges, Avnet also posted
record net earnings 59 percent greater than FY’99. Record earnings per share in the
fourth quarter heralded a return to annual growth – Avnet finished the year at $2.11, up
from $1.54 in FY’99. Also in the final quarter, the Company’s operating margin reached
5.2 percent; and for the full year FY’00 performance was 4.2 percent, up 36 basis points
over FY’99. Net operating profit after tax return on working capital was up 184 basis
points. Return on capital employed increased 87 basis points, and return on equity was
up more than 200 basis points. All reflect excellent progress for the year.
Returning to double-digit organic growth in
FY’00
. Avnet is, at its heart, a very
successful electronics distribution, marketing and services company. We are also a
dynamic industry consolidator, integrating seven acquisitions contributing more than $1.7
billion in sales to the FY’00 results. Avnet is, in effect, a company powered by dual
engines as we charge into the new millennium.
Driving our organic growth are some external and internal factors.
The electronic components industry has emerged from the worst downturn in the history
of the semiconductor market. Dataquest predicts a bright future through 2003 on the
strength of demand for PCs, cellular telephones, communications and data processing
applications. For a company like ours, which derives more than 60 percent of its revenue
from semiconductors, this is great news. In fact, Avnet Electronics Marketing posted a
record year; global sales for FY’00 were approximately $6.6 billion, an increase of 38
percent over FY’99. Strong booking and billing trends, continued product allocations and
rising average selling prices are indicative of another robust year.
Avnet is the number one value-
added distributor of electronic
components in North America –
and the number one global value
added distributor of IBM mid-range
computing products in the world.
3
Phoenix, Arizona, Headquarters
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