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Table of Contents
______________________
Sales on an organic basis also include the effects of a divestiture of a small business in TS Asia in December 2012 and the exit of a small
business in EM Americas in April 2013 that generated combined annual revenues of approximately $20 million.
Fiscal 2013 Comparison to Fiscal 2012
The table below provides the comparison of reported fiscal 2013 and 2012
sales for the Company and its operating groups to organic sales
(as defined earlier in this MD&A) to allow readers to better assess and understand the Company’s revenue performance by operating group.
Consolidated sales for fiscal 2013 were $25.46 billion , a decrease of 1.0% , or $248.6 million
, from the prior year consolidated sales of
$25.71 billion . Organic sales (as defined earlier in this MD&A) decreased 5.3% year over year and declined 4.2%
excluding the translation
impact of changes in foreign currency exchange rates. The organic revenue decline was primarily due to the revenue decline at TS.
EM sales of $15.09 billion for fiscal 2013 increased 1.1% from the prior year sales of $14.93 billion
. EM organic revenue in constant
currency decreased 1.2%
year over year primarily related to the Americas region, which (i) experienced weaker demand and (ii) exited the lower
margin commercial components business. On a regional basis, the Americas organic revenue decreased 10.0%
year over year primarily due to
the decision to exit the lower margin commercial components business. For EMEA, despite the ongoing recessionary trends in the region organic
revenue was relatively flat year over year in constant currency. Asia organic revenue increased 6.5%
year over year, which was primarily due to
higher revenue in the lower gross margin fulfillment business. The higher growth rate in Asia resulted in a regional shift in the mix of sales
between the lower-margin Asia region and the higher-
margin western regions, which negatively impacted both EM's consolidated gross profit
and operating income margins.
20
Acquired Business
Group & Region
Approximate
Annualized
Revenues
(1)
Acquisition Date
(Millions)
Fiscal 2011
itX Group Ltd.
TS Asia
$
160
January 2011
Center Cell
EM Americas
5
November 2010
Eurotone
EM Asia
30
October 2010
Broadband
EM Americas
8
October 2010
Unidux
EM Asia
370
July 2010
Tallard Technologies
TS Americas
250
July 2010
Bell Microproducts Inc.
EM & TS Americas
TS EMEA
3,021
July 2010
Total
$
3,844
(1) Represents the approximate annual revenue for the acquired businesses’
most recent fiscal year prior to acquisition by Avnet and based
upon average foreign currency exchange rates for those periods.
Sales as
Reported
Acquisition/Divested
Revenue
Organic
Sales
2013 to 2012
Change
(Dollars in millions)
EM
$
15,094.4
$
148.4
$
15,242.8
(2.5
)%
TS
10,364.5
153.8
10,518.3
(9.0
)
Fiscal 2013
$
25,458.9
$
302.2
$
25,761.1
(5.3
)
EM
$
14,933.1
$
707.6
$
15,640.7
TS
10,774.4
789.2
11,563.6
Fiscal 2012
$
25,707.5
$
1,496.8
$
27,204.3