'Soft' demand leads Microtronica owner to weak quarter

Euro sales wound Arrow

Distributor Arrow Electronics has seen a strong quarter, with the firm reporting sales of $4.3 billion, an increase of eight per cent, however, underneath the bumper results was some concerning news about its performance in the European markets.

Describing sales in the region as ‘soft’, the distributor – which owns Microtronica in the UK – revealed that while sales were $1.1 billion, a rise of five per cent year-on-year, once the firm removed favourable exchange rates it revealed the division saw sales fall eight per cent.

"Market conditions in Europe have remained soft," explained Arrow’s chief financial officer Paul Reilly, though he did stress it wasn’t out of line with expectations. "We do believe we have a great opportunity for improvement and remained focused on initiatives to drive profitability in this region."

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