Avnet 2001 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2001 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

Avnet is Positioned to Excel
By aggressively adjusting to challenging business conditions
while continuing to build a company of industry-leading scope and scale, Avnet
is molding a lean, global company positioned to excel when the market rebounds.
Avnet’s aggressive acquisition strategy is aimed squarely at creating the scope and
economies of scale necessary to increase shareholder value. In pursuing this
strategy, the Company has reduced its cost structure, expanded its customer and
supplier relationships, broadened its geographic reach, and added the skills and
knowledge of talented, experienced employees. Since FY’99 began, we have
completed the acquisition of 19 companies with top-line historical revenues
totaling more than $6.7 billion. In FY’01 alone, Avnet finalized five acquisitions
with historical revenues totaling approximately $3.6 billion, reducing our exposure
to the semiconductor cycle, establishing a new networking business relationship
with Cisco Systems, and substantially increasing our presence in Europe and
Asia. Avnet has become extremely efficient at integrating acquisitions, completing
the integration of Kent’s components business just 25 days from the close of
the transaction.
In the second half of the fiscal year, significant tactical focus was required to
navigate the downturn. Synergies created by the rapid integration of acquisitions,
coupled with aggressive cost cutting measures including the reduction of Avnet’s
census by approximately 1,100 people, resulted in selling, general and adminis-
trative savings of more than $70 million annualized by the end of the June quarter.
Costs should continue to fall at least through the first half of FY’02. We also
reduced our debt by $752 million (before taking into account the $350 million
reduction due to our accounts receivable securitization program) from December
After three days spent forging the Company’s future at the triennial Global Managers Meeting, participants gather to
share their impressions at the closing ceremony. Below, a signature is added to a poster highlighting Avnet’s core values,
unveiled at the November 2000 meeting in Phoenix, Arizona.
AVNET, INC. FY 2001
SALES BY REGION
AMERICAS
EMEA
ASIA
% OF
$ BILLIONS AVNET'S SALES
AMERICAS $8.75 68.3%
EMEA $3.51 27.4%
ASIA $0.55 4.3%