Avnet 2009 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2009 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 113

  • 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
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

Table of Contents
in fiscal 2008 and 2009 as if the acquisitions had occurred at the beginning of fiscal year 2008 to allow readers to
better assess and understand the Company’s revenue performance by operating group.
Consolidated sales for fiscal 2009 were $16.23 billion, down 9.6%, or $1.72 billion, from the prior year
consolidated sales of $17.95 billion. Excluding the translation impact of changes in foreign currency exchange rates,
sales declined 6.5% year over year. Both operating groups experienced double digit organic contraction in sales as
consolidated pro forma sales were down 15.6% year over year. However, on a sequential quarterly basis, fourth
quarter consolidated sales grew 1.8% and were essentially flat on a pro forma basis. In response to the year-over-
year
organic sales contraction in both operating groups, management took actions during fiscal 2009 to reduce costs. See
discussion under Selling, General and Administrative Expenses later in this MD&A.
EM sales of $9.19 billion declined 11.0% over the prior year sales of $10.33 billion and declined 8.5%
excluding the translation impact of changes in foreign currency exchange rates. The decline in revenue was most
significant in the Americas and the EMEA regions as the global economic slowdown negatively impacted the broad
industrial markets in these regions. Year-over-
year sales were down 12.8%, 16.7% and 1.6% in the Americas, EMEA
and Asia, respectively. The decline in EMEA sales was compounded by the negative impact of the US dollar
strengthening against the Euro during fiscal 2009 as the EMEA region’s year-over-year sales declined 9.1%
excluding the translation impact of changes in foreign currency exchange rates and 17.8% on a pro forma basis.
Year-over-year organic sales in the Americas and Asia declined 14.6% and 6.7%, respectively, however, Asia sales
grew 20.3% sequentially in the fourth quarter of fiscal 2009.
TS sales of $7.04 billion in fiscal 2009 were down 7.7% year over year and down 3.8% excluding the translation
impact of changes in foreign currency exchange rates. Organic sales declined 15.0% year over year. Year-over-year
sales in the Americas and EMEA were down 10.9% and 3.7%, respectively. Asia sales were up 3.9% year over year
and up 16.0% on a sequential quarterly basis, due in part to the recent organic investments in China and the
acquisition in India. Excluding the impact of changes in foreign currency exchange rates, EMEA year-over-year
revenue was up 7.7% but organic sales were down 15.3% year over year.
Fiscal 2008 Comparison to Fiscal 2007
The following table provides a comparison of reported sales for fiscal 2008 and fiscal 2007 to pro forma sales
which are adjusted for (i) acquisitions completed in fiscal 2008 and 2007 as if the acquisitions had occurred at the
beginning of fiscal year 2007 and (ii) the change to net revenue reporting as if the change had occurred at the
19
2009 to 2008
Sales as
Acquisition
Pro Forma
Pro Forma
Reported
Sales
Sales
Change
(Dollars in millions)
EM
$
9,192.8
$
291.8
$
9,484.6
(16.0
)%
TS
7,037.1
0.6
7,037.7
(15.0
)
Fiscal 2009
$
16,229.9
$
292.4
$
16,522.3
(15.6
)
EM
$
10,326.8
$
969.2
$
11,296.0
TS
7,625.9
653.7
8,279.6
Fiscal 2008
$
17,952.7
$
1,622.9
$
19,575.6