Components | September 08, 2011
Farnell sales up 4,8%
”The Group delivered the best Q2 sales per day and operating profit since our strategy began”, the company writes today. Still, the company remains cautions in regards to current economic situation.
At the same time, the operating profits went up by 1,8%. Commenting on the results, Harriet Green, Group Chief Executive, said: “We are confident that our strategy will deliver sustainable profitable growth across the economic and product cycles and we are pleased with the progress that we continue to make in its execution. We recognise that our business model inherently provides us with limited forward visibility, and that current global economic conditions are uncertain. August’s performance was negative – down 2.0% year on year, against very strong comparatives last year. We remain cautious in light of this continuing uncertain economic environment.” As a result of this, Farnell has taken steps to focus capital expenditure strategically while at the same time working with cost efficiency. Financial Highlights • Group sales grew 4.8% in the first half and 1.4% in the second quarter despite the economic slowdown and the very strong comparators of 25% and 30%respectively. • The Group delivered the best Q2 sales per day and operating profit since our strategy began (at constant exchange rates and after adjusting for the sale of TPC). Compared to the prerecessionary sales levels in the second quarter of financial year 2009, sales from our electronics distribution businesses have grown 11.7%. • Following management actions second quarter sales in Asia Pacific grew 4.2% sequentially on Q1, with absolute sales per day in Singapore and Malaysia stable during the quarter. • Second quarter gross margin of 39.8% contributed to a first half gross margin of 40.3%, stable with the prior year first half of 40.4%. • Operating profit has grown 1.8% in Q2 (2010/11 Q2: 73%) giving first half operating profit growth of 7.4% (2010/11: 58%) and return on sales in the first half increased to 11.2% for the Group and 12.5% for MDD. • Continued strong cash conversion with Q2 operating cash flow representing 94.9% of operating profit (2010/11: 91.9%). • Management actions have delivered a reduction in planned costs of £2.1 million in Q2 with a further £15 million reduction in planned cost for the second half. Planned H2 capital expenditure reduced by 35% giving full year forecast of £25 million. • The board has approved an interim dividend of 4.4 pence per share in line with the prior year. Strategic Highlights • Focus on the tactical execution of our strategic drivers – EDE, web, internationalisation and profitable MRO - intensified in face of the uncertain market conditions. • Active customer base remains an important indicator of future performance and has continued to grow with 5.5% year on year growth in the first half. • Second quarter sales via the web grew 19.0%, helped by the newly launched element14 knode. eCommerce sales now account for 55.1% of total MDD sales, an increase of 9.2 percentage points on Q2 of the prior year. Europe now exceeds our performance metric at 72.8%. • Sales from our developing markets accounted for 23.9% of Group sales in the second quarter as we continue to move towards our strategic target of 30%, supported by our new markets of Taiwan, South Korea and Thailand where second quarter sales grew 46.8% sequentially. • Element14 community registered users increased through the quarter, 10% higher overall than Q1 and six times higher than Q2 in the prior year with over 600,000 visits in the quarter. © Farnell
Nuvia closes series A, eyes data center servers Santa Clara semiconductor design startup Nuvia Inc., formed earlier this year by three former top Apple Inc. design executives, has closed its series A round with USD 53 million secured.
Ingun's going global; expands in Latin America and Eastern Europe Benjamin Sontag (INGUN Prüfmittel GmbH) gave a short update on expansion plans in Latin America and Eastern Europe.
Yageo to acquire KEMET in a $1.8 billion deal Yageo Corporation and KEMET Corporation have entered into a definitive agreement under which Yageo will acquire all of the outstanding shares of KEMET’s common stock for USD 27.20 per share in an all-cash transaction valued at USD 1.8 billion.
EVG and DELO partner to expand materials and process capabilities Supplier of wafer bonding and lithography equipment for the MEMS and semiconductor industry, EV Group (eVG), is partnering with DELO, a manufacturer of industrial high-tech adhesives, in the area of wafer-level optics.
Sponsored content by Nordson ASYMTEKStart-to-finish conformal coating with reliability and efficiency Nordson ASYMTEK’s flexible, modular, Panorama™ S-Line delivers conformal coating process control in a space-saving footprint with overlapping line processes that minimize manufacturing floor space. This innovative, patent-pending line layout trims 50% of the line’s length by using the lower compartment in each piece of equipment for functional use. Combined with Nordson ASYMTEK’s global support, this complete conformal coating line delivers quality, product reliability, efficiency, and safety for all your conformal coating applications.
Osram recommends current takeover offer from ams Osram says it has concluded a business combination with Austrian chipmaker ams and is recommending its shareholders to accept the current takeover offer.
EpiWorld speeds up commercialisation of SiC devices with AIXTRON AIXTRON SE has provided an AIX G5 WW C system to EpiWorld International Co., Ltd for the further development of next generation silicon carbide (SiC) epitaxial wafers mainly used for the manufacturing of power devices for automotive applications.
FlexEnable makes acquisition for flex displays FlexEnable, developer of flexible organic electronics, has purchased Merck's portfolio of high-performance organic thin-film transistor (OTFT) materials.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
Samsung’s CPU project ends, layoffs in CA and TX Samsung has confirmed in a letter to the Texas Workforce Commission that layoffs as a result of the closure of the CPU project at the Samsung R&D Center (SARC) in Austin, Texas and the San Jose Advanced Computing Lab (ACL) in San Jose, California, will begin December 31.
Marvell completes acquisition of Avera Semi Marvell has completed its acquisition of Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of GlobalFoundries.
IAR Systems opens office in Taiwan Swedish IAR Systems, a supplier of software tools and services for embedded development, says the company is expanding in Asia with the opening of an office in Taipei, Taiwan.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
ZF and Cree partners up to advance the electric drive ZF Friedrichshafen is teaming up with silicon carbide semiconductor specialist Cree, to create industry-leading, highly efficient electric drivelines.
Broadcom completes acquisition of Symantec Enterprise Security business Semiconductor company Broadcom, says that the company has completed its acquisition of the Enterprise Security business of Symantec Corporation
AVX acquires Chengdu OK New Energy AVX Corporation says it has completed the purchase of Chengdu OK New Energy, Ltd. (COKNE).
Vesper names new SVP of worldwide sales & business development MEMS sensor company Vesper, announces that Lorenzo Ponzanelli has joined the company as senior vice president of worldwide sales and business development, overseeing sales strategy and execution to drive global growth.
Gigaphoton establishes new company in China Gigaphoton, a manufacturer of light sources used in semiconductor lithography, says it has established and started running the business of a new company – Gigaphoton China Inc. in China.
Prepare, adapt & overcome - how ‘to Brexit’ The looming, but yet unknown, effects of Brexit have forced companies to prepare for whatever may come. But how does one really prepare for unknown consequences?
Acal BFi signs pan-European agreement with Champs Technologies Acal BFi says it has added Champs Technologies to its magnetics portfolio. Acal BFi is a Europe-wide specialist technology supplier and design partner with a specialist portfolio of magnetic cores and inductive components products and services.
POET’s sale of DenseLight Semi to close POET Technologies Inc. announced the sale of its subsidiary, DenseLight Semiconductors Pte. Ltd. to DenseLight Semiconductor Technology (Shanghai) Co. Ltd. is scheduled to close on or before Friday, November 8, 2019.
Sponsored content by NCAB Group Benelux B.V.Failure is not an option for a PCB More than 30% of the Gerbers NCAB Group Benelux B.V. reviews, have problems. However, the PCB are integrated in key end-user product with more and more High Tech PCB. We are here to support you on the new technologies growth to maintain a high reliability and quality. Contact us to review it together.
Odyssey Semiconductor picks up wafer fab Ithaca, New York’s Odyssey Semiconductor Technologies, specializing in high-voltage power switching components and systems based on proprietary gallium nitride (GaN) processing technology, has acquired an integrated semiconductor design, fabrication, test, and packaging facility.
RBVC, Ford and BMW invests in flexible electric circuit start-up Robert Bosch Venture Capital GmbH (RBVC), the venture capital company of the Bosch Group, announces that it has completed a series B follow-on investment in CelLink Corporation.
Alex Davern to step down as CEO of National Instruments NI has announced that Alex Davern will step down as Chief Executive Officer of the company, effective January 31, 2020. The NI Board of Directors has appointed current President and COO, Eric Starkloff, as NI President and CEO, effective February 1, 2020.
RoodMicrotec takes leading role in APPLAUSE A consortium of 31 key players for packaging of electronics, optics and photonics, equipment suppliers and testing experts from 11 countries launched a new project, “Advanced packaging for photonics, optics and electronics for low cost manufacturing in Europe,” simply called APPLAUSE.Load more news