Avnet 2015 Annual Report Download - page 27
Download and view the complete annual report
Please find page 27 of the 2015 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.TableofContents
TSsalesof$10.58billionforfiscal2015decreased3.4%fromfiscal2014salesof$10.96billion.Salesremainedflatyear
overyearinconstantcurrency.Ontheregionalbasis,salesintheAmericasregionincreased2.3%.InEMEA,salesinconstant
currency decreased 1.4%. Asia sales decreased 13.6% year over year, which was primarily due to double digit declines in
computingcomponents.
Gross Profit and Gross Profit Margins
Grossprofitinfiscal2016was$3.04billion,adecreaseof$155.6million,or4.9%,fromfiscal2015.Grossprofitdecreased
3.3%yearoveryearonanorganicbasisinconstantcurrencyprimarilyresultingfromdecreasesinsalesatbothoperatinggroups.
Grossprofitmarginof11.6%increased16basispointsyearoveryearprimarilyasaresultofincreasesatTSduetoproductmix
differencebetweenyears.
Grossprofitinfiscal2015was$3.19billion,adecreaseof$32.6million,or1.0%,fromfiscal2014andanincreaseof3.3%
yearoveryearonanorganicbasisinconstantcurrency.Grossprofitmarginof11.4%decreased30basispointsyearoveryear.
EMgrossprofitmargindecreasedyearoveryearprimarilyrelatedtotheabovementionedgeographicmixshifttowardsAsia,the
weakerEuroadverselyimpactingthecontributiontogrossprofitmarginfromthehighermarginEMEAregionandfromdeclines
inAsiafrom an increase inselect highvolume supplychain engagements,whichwerepartially offset byan increase ingross
profit margin in EMEA. TS gross profit margindecreased slightly year over year, with improvements in the EMEA and Asia
regionsbeingoffsetbyadeclineintheAmericas.
Selling, General and Administrative Expenses
Selling,general and administrative expenses (“SG&Aexpenses”)were$2.17 billion infiscal2016,adecrease of $104.1
million,or4.6%,fromfiscal2015.Theyear-over-yeardecreaseinSG&AexpenseswasprimarilyduetoreductionsatbothEM
and TS as a result of changes in foreign currency exchange rates between years, and the impact of prior restructuring actions
partially offset by an increase in SG&A expenses for acquisitions and other costs, including employee merit compensation
increasesthattookplaceinJanuary2016.Infiscal2016,SG&Aexpensesasapercentageofsaleswere8.3%andasapercentage
ofgrossprofitwere71.5%ascomparedwith8.1%and71.2%,respectively,infiscal2015.SG&Aexpensesasapercentageof
gross profit at EM increased 147 basis points year over year due primarily to lower sales, partially offset by lower SG&A
expensesdueprimarilytothebenefitsofrecentrestructuringandcostsavingsactions.SG&Aexpensesasapercentageofgross
profit at TS decreased 64 basis points from fiscal 2015 due primarily to the benefits of recent restructuring and cost savings
actionsandimprovementsingrossprofitmargininallthreeregions.
SG&Aexpenseswere$2.27billioninfiscal2015, adecreaseof $66.5million,or2.8%,fromfiscal2014. Thisdecrease
consistedprimarilyofdecreasesduetotheimpactofdifferencesinforeigncurrencyexchangeratesbetweenthefiscalyearsand
decreasesduetopriorrestructuringactions.Thesedecreaseswerepartiallyoffsetbyincreasesduetofiscal2014acquisitionsand
increasestofundorganic growthandother costs.Infiscal2015,SG&Aexpensesasapercentageofsaleswere8.1%andasa
percentage of gross profit were 71.2% as compared with 8.5% and 72.6%, respectively, in fiscal 2014. SG&A expenses as a
percentageofgrossprofitatEMdecreased197basispointsyearoveryeardueprimarilytothebenefitsofrecentrestructuring
andcostsavingsactionsandfromanincreaseingrossprofitduetoincreasedsales,partiallyoffsetbyincreasesassociatedwith
fiscal2014acquisitionsandincreasestofundorganicgrowthandothercosts.SG&Aexpensesasapercentageofgrossprofitat
TSdecreased224basispoints from fiscal 2014 due primarily tothe benefits ofrecent restructuringandcostssavingsactions,
partiallyoffsetbythedecreaseingrossprofitandincreasestofundorganicgrowthandothercosts.
26