# Arrow Electronics Reports Third-Quarter 2024 Earnings and Restructuring Plan#

Arrow Electronics, Inc., a global provider of technology solutions, recently released its third-quarter 2024 financial results. The company reported consolidated sales of $6.8 billion, hitting the high end of its guidance range. Net income attributable to shareholders was $101 million, with earnings per diluted share at $1.88 (GAAP) and $2.38 (Non-GAAP).

The global components business saw a 21% year-over-year decline in sales, influenced by ongoing ecosystem inventory corrections. In response to evolving business needs, Arrow Electronics announced an Operating Expense Efficiency Plan focused on optimizing operational expenses. The multi-year restructuring plan includes reorganizing and consolidating operations, enhancing warehouse and logistics operations, investing in information technology, consolidating real estate, reducing third-party spending, and winding down certain non-core businesses not aligned with strategic objectives.

Arrow Electronics expects to incur approximately $185 million in pre-tax restructuring charges under the Plan, to be completed by the end of fiscal year 2026, subject to legal and consultation requirements. The Company emphasized the projection as subject to assumptions, with potential variation in actual charges due to unforeseen events during the Plan’s implementation.

The company’s leadership cautioned about forward-looking statements, as is customary under federal securities laws, highlighting the uncertainties that could impact actual results. These risks include local legal requirements, additional unanticipated charges concerning the Plan, business disruption risk, regulatory factors, and economic conditions among others.

As Arrow Electronics aligns its operations to streamline costs, it anticipates annual reductions of $90-100 million by the end of 2026. The company provided insights into its fourth-quarter 2024 outlook, anticipating consolidated sales in the range of $6.67 billion to $7.27 billion, with additional guidance on earnings per share, tax rates, interest expenses, and currency impacts.

Investors and industry analysts are advised to refer to the full Form 8-K filing for a comprehensive understanding of Arrow Electronics’ financial and operational status.

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The content above is a reflection of the information provided in the 8-K SEC Filing by Arrow Electronics and does not involve any additional information apart from what was disclosed in the filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Arrow Electronics’s 8K filing here.

Arrow Electronics Company Profile

Arrow Electronics, Inc provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions.