Arrow Electronics Announces $600 Million Increase to Share Repurchase Authorization

Rhea-AI Summary

Arrow Electronics (NYSE:ARW) has approved an additional $600 million for its stock repurchase program. The decision empowers the company to repurchase shares based on market conditions through various methods, including open market purchases. This measure demonstrates the company’s commitment to enhancing shareholder value. Arrow Electronics had sales of $34 billion in 2021, showcasing its significant position in guiding technology innovation.

Positive

• Approval of an additional $600 million for share repurchase enhances shareholder value.
• Strong sales of $34 billion in 2021 indicate a solid financial base.

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• None.

CENTENNIAL, Colo.--(BUSINESS WIRE)-- Arrow Electronics, Inc. (NYSE:ARW) announced today the approval by the company’s Board of Directors of the repurchase of up to an additional $600 million of common stock through its existing share repurchase program.

This action will permit the company to continue repurchasing shares of its common stock as market and business conditions warrant through open market purchases, privately negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities and Exchange Act of 1934, as amended. Repurchases may continue from time to time, as conditions permit, until the number of shares authorized to be repurchased have been acquired, or until the authorization to repurchase is terminated, whichever occurs first, and the company has no obligation to repurchase any amount under the program.

About Arrow Electronics

Arrow Electronics guides innovation forward for over 220,000 leading technology manufacturers and service providers. With 2021 sales of $34 billion, Arrow develops technology solutions that improve business and daily life. Learn more at fiveyearsout.com.

Forward Looking Statements

This press release includes "forward-looking statements," as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “believes,” “seeks,” “estimates,” and similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: disruptions or inefficiencies in the supply chain, including any potential adverse effects of the ongoing global COVID-19 pandemic, impacts of the conflict in Ukraine, industry conditions, changes in product supply, pricing and customer demand, competition, other vagaries in the global components and the global enterprise computing solutions (“ECS”) markets, economic conditions, including changes in inflation rates, tax rates, or the availability of capital, changes in relationships with key suppliers, increased profit margin pressure, changes in legal and regulatory matters, non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws, foreign tax and other loss contingencies, and the company's ability to generate cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in Arrow’s most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220915005390/en/

Contact:

Rick Seidlitz

Vice President and Principal Accounting Officer

303-305-4936

Media Contact:

John Hourigan

Vice President, Global Communications

303-824-4586

Source: Arrow Electronics

FAQ

What is the purpose of Arrow Electronics' $600 million stock repurchase program?

The $600 million stock repurchase program aims to enhance shareholder value by buying back shares based on favorable market and business conditions.

How does Arrow Electronics plan to execute the stock buyback?

Arrow Electronics will execute the stock buyback through open market purchases, privately negotiated transactions, and in accordance with federal securities laws.

What financial impact is expected from the stock repurchase for ARW shareholders?

The stock repurchase is expected to enhance shareholder value by reducing the total number of outstanding shares, potentially increasing earnings per share (EPS).