Despite posting lower profits and seeing slower growth during its first quarter, Avnet has hinted that it has no plans to wind down its recent acquisition spree.It saw revenues rise 9.7 per cent compared to the same time last year; however, when acquisitions are stripped away, the grow rate was just 0.9 per cent.
Profits were also down, with operating 6.5 per cent lower at £$154.5m (£100m) and net down from $105.5m (£68.9m) to $92.8m (£60.6m).
Avnet's chief executive Roy Vallee said that end market demand had stayed 'sluggish' from previous quarters and warned that it would be 'difficult to predict' the impact the current credit crisis would have on the global technology market.
However, despite the muted comments, Vallee was keen to stress that the continuing effects of the macro climate would not dampen its intentions to invest in 'strategic opportunities'.
"While the macro environment has necessitated these cost reductions to protect our income and margins, Avnet's strong, counter cyclical balance sheet and cash generation allow us to continue to invest in strategic opportunities that create long-term shareholder value and enhance our competitive position, as evidenced by our recent offer to acquire Abacus Group PLC."
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