Avnet 2002 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 of the 2002 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 91

  • 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
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91

The June 2002 quarter represented the fifth
consecutive quarter of operating expense reductions
(excluding special charges) and the sixth consecutive
quarter of debt reductions. Over this span, annualized
operating expenses were reduced approximately
$300 million. Slashed by approximately $1.5 billion,
debt was almost halved. At the end of FY’02, our
asset velocity ratios were in line with historic levels, so
we do not anticipate significant additional asset
productivity gains until revenue growth resumes.We will
continue to balance practical cost reduction measures
with investments as we position the Company to
expand its role in the next technology up-cycle.
RESTRUCTURING OPERATIONS To accelerate
top and bottom line growth, Electronics Marketing,
Computer Marketing and Applied Computing
completed reorganizations that commenced at the
beginning of FY’02.Within those operating groups
are now more than 30 strategic divisions focused by
commodity, line card and/or geography. Across the
enterprise, there is a strong commitment to services,
for it is our Company’s services that differentiate
Avnet’s product distribution business from our
competitors. When provided on a stand-alone, fee
basis, our services also create new revenue streams in
AVNET, INC. FY 2002
SALES BY OPERATING GROUP
 % of
$ Billions Avnet Sales
EM $4.84 54.3%
CM $2.40 26.9%
AC $1.68 18.8%
EM
AC
CM
Electronics Marketing (EM) Through
focused divisions, EM markets, inventories and
adds value, via services such as supply-chain
management and engineering design, to
semiconductors; interconnect, passive and
electromechanical devices; radio frequency
and microwave devices; and specialty products
from leading component manufacturers.
Computer Marketing (CM) CM builds
channels to market that provide focused sales,
marketing and value-added distribution of
enterprise computing systems, software
and services for value-added resellers, and
enterprise solutions for end users.
Applied Computing (AC) AC markets
and adds value through engineering assistance,
supply-chain management and end product
integration to embedded technology
subsystems, including computer platforms
and servers, boards and memory modules,
mass storage, peripherals, microprocessors,
flat panel displays and operating systems.
3
It’s not just about products, it’s
about the services, relationships
and knowledge that add value
to them and free our customers
and suppliers to concentrate on
what makes them successful.
superior capabilities