6 Distributors In The 2015 Fortune 1000
Big And Getting Bigger
The six major North American publicly traded technology distributors climbed a combined 43 spots in the 2015 Fortune 1000 rankings as their sales grew by a total of $10.93 billion in the most recent fiscal year. Profits for the distributors, however, increased by a far more modest $218.9 million, while their head count swelled to more than 132,000. Acquisitions helped fuel growth for Arrow Electronics, Ingram Micro, ScanSource and Tech Data, while Avnet nearly surpassed Tech Data in the rankings based off the success of its semiconductor business. All of them improved their standing on the list except ScanSource. Here are the six IT distributors to make the list.
6. ScanSource
2015 Fortune 1000 Rank: 775 (down 24 spots)
CEO: Michael Baur
ScanSource fell from No. 751 to No. 775 on the Fortune 1000 as the company grew 1 percent to $2.91 billion in fiscal 2014, ended June 30, 2014. The Greenville, S.C.-based distributor fared much better with its bottom line, as profits soared by 136 percent to $82 million compared to the previous year, and earnings per share ballooned by 130 percent. ScanSource announced in August that it would acquire Brazilian distributor Network1 as well as U.K.-based voice, video and data company Imago Group. The distributor has 1,500 employees.
5. Synnex
2015 Fortune 1000 Rank: 220 (up 40 spots)
CEO: Kevin Murai
Synnex soared from No. 260 to No. 220 on the Fortune 1000, making it the biggest mover among IT distributors. Sales ballooned by 27 percent in fiscal 2014, ended Nov. 30, to $13.8 billion. Profits for the Fremont, Calif.-based distributor climbed 18 percent to $180 million compared to the previous year, while earnings per share boomed by 49 percent. Synnex's technology solutions business grew by 19.6 percent in 2014, with success in both core networking and security segments, as well as emerging sectors such as cloud, software and mobility. The distributor has 64,000 full-time and temporary employees worldwide, and has appeared on the Fortune 500 list since 2007.
4. Arrow Electronics
2015 Fortune 1000 Rank: 131 (up 7 spots)
CEO: Michael Long
Arrow Electronics climbed from No. 138 to No. 131 on the Fortune 1000 as sales jumped to $22.8 billion in 2014, up 6 percent compared to the previous year. The Centennial, Colo.-based distributor was dripping in profits, which grew by 24 percent to $498 million. Earnings per share fared even better, rising 29 percent. Arrow's enterprise computing solutions business grew in line with overall sales, jumping nearly 8 percent to $8.46 billion. The distributor has been on an acquisition tear in 2015, purchasing federal government distributor immixGroup; product design services firm United Technical Publishing; and RDC, a technology returns and asset management company in Europe. Arrow employs 17,000 people, and has been on the Fortune 500 since 1995.
3. Avnet
2015 Fortune 1000 Rank: 108 (up 9 spots)
CEO: Richard Hamada
Avnet jumped from No. 117 to No. 108 on the Fortune 1000 as sales increased by 8 percent in fiscal 2014, ended June 30, 2014, to $27.5 billion. Profits for the Phoenix-based distributor fared even better, climbing 21 percent to $546 million while earnings per share also soared by 21 percent. Revenue for Avnet's technology solutions business increased by 5.7 percent to $11 billion. Despite not making a major technology-related acquisition since June 2013, Avnet said it's looking to acquire capabilities around software, services and converged solutions. Avnet has 19,000 employees, and has been on the Fortune 500 since 1995.
2. Tech Data
2015 Fortune 1000 Rank: 107 (up 4 spots)
CEO: Robert Dutkowsky
Tech Data improved from No. 111 to No. 107 on the Fortune 1000 as sales increased by 3 percent in 2014 to $27.7 billion. But profits for the Clearwater, Fla.-based distributor fell by 2 percent to $175 million, while earnings per share dropped by 3 percent. Tech Data sold its businesses in Peru and Chile to distribution foe Ingram Micro in March, and also plans to discard its business in Uruguay. Tech Data employs 8,900 people, and has been on the Fortune 500 since 1995.
1. Ingram Micro
2015 Fortune 1000 Rank: 62 (up 7 spots)
CEO: Alain Monie
Ingram Micro leapfrogged from No. 69 to No. 62 on the Fortune 1000 as sales grew by 9 percent in 2014 to $46.5 billion. However, profits for the Santa Ana, Calif.-based distributor fell by 14 percent to $267 million, while earnings per share dropped by 16 percent. Fortune cited Ingram Micro's relationships with Juniper and IBM and the expansion of its cloud marketplace to Europe as assets, but said the ability of resellers and small businesses to purchase directly from cloud providers could leave distributors out in the cold. Ingram Micro has 21,700 employees, and has appeared on the Fortune 500 since 1997.