Avnet 2015 Annual Report Download - page 26

TableofContents
EMsalesof$16.57billionforfiscal2016decreased4.5%fromfiscal2015salesof$17.34billionanddecreased2.0%in
constantcurrencyyearoveryear.ThesedecreaseswereduetodeclinesinsalesintheAmericasandAsiaregions,partiallyoffset
byanincreaseinsalesintheEMEAregion.SalesintheAmericasdecreased5.2%duetoloweroveralldemandintheindustrial
markets EM Americas serves and from disruptions in customer delivery and service capabilities resulting from an ERP
implementationinthefourthquarteroffiscal2016.InEMEA,organicsalesinconstantcurrencyincreased7.8%duetostrong
demandintheindustrialmarketsservedacrosstheregion.Asiasalesdecreased8.2%yearoveryear,whichwasprimarilydueto
decreasedselecthighvolumesupplychainengagementsinfiscal2016comparedtofiscal2015.
TSsalesof$9.65billionforfiscal2016decreased8.8%fromfiscal2015salesof$10.58billion.Salesinconstantcurrency
decreased 5.2% year over year and organic sales in constant currency decreased 7.9%. On a regional basis, organic sales
decreased9.8%intheAmericasregion,2.9%intheEMEAregioninconstantcurrency,and16.5%intheAsiaregioninconstant
currency.Eachofthesedecreasesinsaleswasprimarilyduetoloweroveralldemandforcertainlegacydatacenterproductsand
from the impact of changes in product mix. At a product level, increases in networking, services and software were partially
offsetbydecreasesinserversandstorage.
Fiscal2015ComparisontoFiscal2014
Thetablebelowprovidesthecomparisonofreportedfiscal2015and2014salesfortheCompanyanditsoperatinggroups
toorganicsalestoallowreaderstobetterassessandunderstandtheCompany’ssalesperformancebyoperatinggroup.
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        2015 to 2014
    Sales from Organic  
  Sales as Acquisitions/ Organic Sales Constant
  Reported Divestitures Sales  Change  Currency
  (Dollars in millions)   
EM $ 17,344.7 $ —  $ 17,344.7 4.1 % 8.3 %
TS  10,580.0  —  10,580.0 (3.4)  (0.1)
Fiscal2015 $ 27,924.7 $ — $ 27,924.7 1.1   5.0 
EM $ 16,544.4 $ 119.9  $ 16,664.3    
TS  10,955.3  —  10,955.3    
Fiscal2014 $ 27,499.7 $ 119.9 $ 27,619.6    
Consolidated sales for fiscal 2015 were $27.92 billion, an increase of 1.5%, or $425.0 million, from fiscal 2014
consolidatedsalesof$27.50billion.Organicsalesincreased1.1%yearoveryearandincreased5.0%inconstantcurrency.The
organicsalesincreasewasprimarilyduetogrowthatEMasdiscussedfurtherbelow.
EMsalesof$17.34billionforfiscal2015increased4.8%fromfiscal2014salesof$16.54billion.EMsaleswereimpacted
bytheweakerEuroduringfiscal2015incomparisontofiscal2014asEMorganicsalesinconstantcurrencyincreased8.3%year
overyearduetogrowthacrossallregions.Onaregionalbasis,organicsalesintheAmericasincreased1.6%yearoveryear.In
EMEA,organicsalesinconstantcurrency increased7.8%duetostrong demandacrosstheregion.Asiasalesincreased12.3%
yearoveryear,whichwasprimarilyduetoincreasedselecthighvolumesupplychainengagementsinfiscal2015comparedto
fiscal2014.ThehighergrowthrateinAsiaandtheeffectoftheweakerEuroduringfiscal2015resultedinaregionalshiftinthe
mixofsalestowardAsia,whichrepresentedapproximately43%oftotalEMsalesinfiscal2015comparedtoapproximately40%
infiscal2014.Suchregionalmixshifthadacorrespondingimpactonfiscal2015EMgrossprofitmarginandoperatingincome
margin.
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