Avnet 2006 Annual Report Download - page 3

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CHAIRMAN’S LETTER
1
Avnet serves
a $1 trillion
market growing
approximately
7 percent per
year. Distribution’s
share of that
is more than
$235 billion.
Growth
opportunities
abound.
$1.50
1.25
1.00
.75
.50
.25
0
-.25
-.50
-.75
$10
9
8
7
6
5
4
3
2
1
0‘02 ‘03 ‘04 ‘05 ‘06
GAAP Earnings
(Loss) Per Diluted Share
$1.39
$2.00
1.75
1.50
1.25
1.00
.75
.50
.25
0
-.25
-.50
-.75 ‘02 ‘03 ‘04 ‘05 ‘06
Non-GAAP Earnings (2)
(Loss) Per Diluted Share
$1.96
‘02 ‘03 ‘04 ‘05 ‘06
Sales
(in billions)
Electronics
Marketing
Technology
Solutions
$9.26
$4.99
Dear Avnet Shareholder: What a year! Record sales on the top line. Record net income on the
bottom line. Record efficiency and productivity metrics for profitability and asset velocity. Near record
earnings per share. Other important financial metrics — return on capital employed (ROCE), return on
working capital (ROWC), operating income margin and dollars — reached levels not seen since before
the technology bubble burst more than five years ago. Alone, each is noteworthy. Together, they tell
the story of a company whose focus on profitable growth, operational excellence and the development
of its people is having a profoundly positive impact on our long-term business model.(2)
• Revenue — Up 29 percent to $14.25 billion (1)
• Operating income — Up 63 percent to $524 million (2)
• Operating income margin — Up 78 basis points to 3.7 percent (2)
• Net income — Up 71 percent to $288 million (2)
• Earnings per share (EPS) — Up 41 percent to $1.96 (2)
• ROWC & ROCE — As we exited the year, we delivered 27 percent ROWC for the fourth quarter, up
749 basis points, and 11 percent ROCE, up 251 basis points from last year’s fourth quarter (2)
More than 326,000 devices are programmed at
Avnet Logistics & Solutions Centers every day.
Avnet’s innovative culture and
entrepreneurial spirit assure
customers and suppliers they
have chosen the right partner.
The Avnet brand flourishes at trade shows and
industry events around the world.