Arrow Electronics Posts $6M Loss In 2Q

Arrow Electronics

A year earlier, Arrow reported earnings of $7 million, or 7 cents per share. The Melville-based distributor's second-quarter 2002 results include severance costs of $5.4 million associated with the resignation of CEO Fran Scricco. Arrow also took a $6.6 million charge for discontinued operations, including the sale of its Gates/Arrow business to Synnex Information Technologies.

Excluding the severance costs and Gates/Arrow charge, the company would have posted earnings of $3.8 million, or 4 cents per share, in line with Wall Street's expectations.

Revenue in the quarter was $1.84 billion, down from $2.36 billion in the same period last year.

"Around the world, our operating groups did a good job in a very difficult market," said Stephen Kaufman, president and CEO of Arrow, in a statement. "The North American components operations and our core components business in Asia/Pacific posted slight increases in sales and meaningful improvements in operating income compared to the first quarter, while our European components business had a modest sales decrease--reflecting weak market conditions in the region coupled with traditional seasonal patterns--but remained solidly profitable."

Arrow's North American Computer Products group--which includes MOCA, SBM, Support Net and Arrow/Wyle--posted sales of $503 million in the quarter, down from $568 million a year ago. Sales from continuing operations increased 1.6 percent year over year.

Arrow shares were trading at $17.36, down 2 cents per share, as of Tuesday morning.