German electronics components distribution shows slight decline in sales

The revenues of the member companies dropped by 3.4% to EUR 802 million. In contrast orders rose by 0.5% (EUR 809 million). With 1.1 the resulting book-to-bill remains in the positive range. The decline is also due to a technical effect, as for companies, who account according to fiscal year and not to calendar month, the quarter was one entire week longer. Without this effect the sales result would be balanced. Semiconductor sales declined by 2.6% to EUR 565 million (incoming orders: EUR 555 million), which corresponds to 70% of the total sales. With a minus of 2.4% passive components generated slightly less sales, equivalent to EUR 111 million (incoming orders: EUR 116 million), corresponding to a share of 14% of total sales. Electromechanical components slipped down by 5% to 74 million Euro, which accounts to a share of 9%. Other components: displays -25% (specific effect), sensors -0.1%, power supplies 7.9%. FBDi Chairman of the board Georg Steinberger says: “With almost 4% sales growth 2016 remains a solid year for the distribution. In view of the uncertainties on the total market – i.e. scandal on exhaust gas, slower growth in China, political uncertainties in and around Europe – the German high-tech market proves to be very robust. Also, due to the actual order situation it is unlikely that the outlook will deteriorate drastically during the coming year.” “However, the massive consolidation is a challenge especially to the manufacturers of semiconductors”, says Steinberger. “With the worldwide semiconductor market remaining week, companies seek to create synergies by acquisitions, and to optimize earnings through pressure on the sales channel. This is neither good for customers nor for distributors. It is simply not sustainable.”