Arrow Electronics Reports Second-Quarter 2023 Results

Rhea-AI Summary

Arrow Electronics, Inc. (NYSE:ARW) reported Q2 2023 sales of $8.51 billion, a 10% decrease YoY. Net income was $237 million, or $4.12 per share, compared to $370 million, or $5.54 per share in Q2 2022. Non-GAAP net income was $251 million, or $4.37 per share, compared to $386 million, or $5.78 per share in Q2 2022. The company posted results in a softer semiconductor market and a mixed IT spending environment.

Positive

• Solid Q2 results despite a softer semiconductor market and mixed IT spending environment
• Non-GAAP EPS above midpoint of guidance
• Sequential inventory reduction, pricing stability, and growth in design-related activity

Negative

• 10% decrease in Q2 sales YoY
• Americas components results impacted by further declines in the shortage market

-- Second-Quarter Earnings Per Share of $4.12; Non-GAAP Earnings Per Share of $4.37 --

-- Revenue in line with guidance; Non-GAAP EPS above midpoint of guidance --

CENTENNIAL, Colo.--(BUSINESS WIRE)-- Arrow Electronics, Inc. (NYSE:ARW) today reported second-quarter 2023 sales of $8.51 billion, a decrease of 10 percent year over year. Second-quarter net income was $237 million, or $4.12 per share on a diluted basis, compared with net income of $370 million, or $5.54 per share on a diluted basis, in the second quarter of 2022. Non-GAAP net income¹ was $251 million, or $4.37 per share on a diluted basis, in the second quarter of 2023, compared with non-GAAP net income of $386 million, or $5.78 per share on a diluted basis, in the second quarter of 2022.

“The company posted solid second-quarter results in a softer semiconductor market and a mixed information technology spending environment, delivering revenue and earnings per share within our guidance range,” said Sean Kerins, Arrow’s president, and chief executive officer.

Global components second-quarter sales of $6.68 billion reflected a decrease of 10 percent year over year. Europe components second-quarter sales increased 19 percent year over year. Asia-Pacific components second-quarter sales decreased 22 percent year over year. Americas components second-quarter sales decreased 17 percent year over year. Global components second-quarter operating income was $381 million, and second-quarter non-GAAP operating income was $388 million.

“While demand in the west broadly remained resilient, customer inventory levels were elevated in the quarter. Americas components results were impacted by further declines in the shortage market, which we now believe to be largely normalized. In Asia, we experienced continued demand softness in China,” said Mr. Kerins. “We were encouraged by our sequential inventory reduction, pricing stability and growth in design-related activity.”

Global enterprise computing solutions (ECS) second-quarter sales of $1.83 billion reflected a decrease of 8 percent year over year. Europe enterprise computing solutions second-quarter sales decreased 1 percent year over year. Americas enterprise computing solutions second-quarter sales decreased 14 percent year over year. Global enterprise computing solutions second-quarter operating income was $86 million, and second-quarter non-GAAP operating income was $87 million.

“We continue to see customers migrate to solutions delivered on an as-a-service basis. Our ECS results reflect this trend as we saw relative strength in cloud, software and services, and improved operating margin year over year,” said Mr. Kerins.

“Reflecting our confidence in our ability to generate cash and consistent with our desire to drive shareholder returns, we repurchased approximately $200 million of shares during the second quarter,” said Raj Agrawal, senior vice president and chief financial officer. “As of the end of the second quarter, our remaining repurchase authorization stands at approximately $824 million.”

¹ A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.

THIRD-QUARTER 2023 OUTLOOK

• Consolidated sales of $7.78 billion to $8.38 billion, with global components sales of $6.00 billion to $6.40 billion, and global enterprise computing solutions sales of $1.78 billion to $1.98 billion
• Net income per share on a diluted basis of $3.25 to $3.45, and non-GAAP net income per share on a diluted basis of $3.40 to $3.60
• Average tax rate in the range of 23 to 25 percent
• Average diluted shares outstanding of ~56 million
• Interest expense in the range of $85 million to $90 million
• Changes in foreign currencies expected to increase year-over-year growth in sales by $212 million, and earnings per share on a diluted basis by $0.11 compared to the third quarter of 2022
• Changes in foreign currencies expected to increase quarter-over-quarter growth in sales by $42 million and earnings per share on a diluted basis by $0.04 compared to the second quarter of 2023
• On a constant currency basis, our third-quarter sales guidance implies a sequential growth rate range of down 11 percent to down 5 percent for global components and down 4 percent to up 7 percent for global enterprise computing solutions, when compared to the second quarter of 2023

Third-Quarter 2023 GAAP to non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
	Quarter Ended						Quarter Ended
(in billions)	September 30, 2023		October 1, 2022		% Change		September 30, 2023		July 1, 2023		% Change
Global components sales, GAAP	$6.00-6.40		$7.30		(18%) - (12%)		$6.00-6.40		$6.68		(10%) - (4%)
Impact of changes in foreign currencies	—		0.14				—		0.03
Global components sales, constant currency	$6.00-6.40		$7.44		(19%) - (14%)		$6.00-6.40		$6.71		(11%) - (5%)
Global ECS sales, GAAP	$1.78-1.98		$1.97		(10%) - 1%		$1.78-1.98		$1.83		(3%) - 8%
Impact of changes in foreign currencies	—		0.07				—		0.02
Global ECS sales, constant currency	$1.78-1.98		$2.04		(13%) - (3%)		$1.78-1.98		$1.85		(4%) - 7%

NON-GAAP EARNINGS RECONCILIATION
	Reported GAAP measure	Intangible amortization expense	Restructuring & integration charges	Non-GAAP measure
Net income per diluted share	$3.25 to $3.45	$0.10	$0.05	$3.40 to $3.60

CFO Commentary and Earnings Presentation

Please refer to the CFO commentary and the earnings presentation, which can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company uses its website as a tool to disclose important information about the company and to comply with its disclosure obligations under Regulation Fair Disclosure.

Conference Call and Webcast Information

Arrow Electronics will host a conference call to discuss second-quarter 2023 financial results on Aug. 3, 2023, at 1:00 PM ET. Register online at https://conferencingportals.com/event/fEoxDDHd to obtain dial-in information to access the live conference call. The conference call will also be available via live webcast at investor.arrow.com. Shortly after the conclusion of the conference call, a webcast replay will be available at investor.arrow.com.

About Arrow Electronics

Arrow Electronics guides innovation forward for over 210,000 leading technology manufacturers and service providers. With 2022 sales of $37 billion, Arrow develops technology solutions that help improve business and daily life. Learn more at fiveyearsout.com.

Information Relating to Forward-Looking Statements

This press release includes “forward-looking” statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow’s future financial performance, including its outlook on financial results for the third quarter of fiscal 2023 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, average diluted shares outstanding, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring & integration charges per diluted share, and expectations regarding market demand and shareholder returns. These and other 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: unfavorable economic conditions; disruptions or inefficiencies in the supply chain; political instability; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; competition; other vagaries in the global components and the global ECS markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; 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; outbreaks, epidemics, pandemics, or public health crises; 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 the company'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.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides non-GAAP sales, operating income, income before income taxes, provision for income taxes, consolidated net income, noncontrolling interests, net income attributable to shareholders, effective tax rate and net income per share on a diluted basis, which are non-GAAP measures adjusted for the impact of changes in foreign currencies (referred to as "changes in foreign currencies" or "on a constant currency basis") by re-translating prior-period results at current period foreign exchange rates, identifiable intangible asset amortization, restructuring, integration, and other charges, net gains and losses on investments, and impact of tax legislation changes. Management believes that providing this additional information is useful to the reader to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP.

ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
	Quarter Ended								Six Months Ended
	July 1, 2023				July 2, 2022				July 1, 2023				July 2, 2022
Sales	$	8,514,516			$	9,460,842			$	17,250,944			$	18,534,967
Cost of sales		7,448,467				8,224,628				15,071,073				16,091,249
Gross profit		1,066,049				1,236,214				2,179,871				2,443,718
Operating expenses:
Selling, general, and administrative expenses		617,202				653,640				1,259,633				1,297,565
Depreciation and amortization		46,264				47,252				92,943				95,557
Restructuring, integration, and other charges		10,333				2,494				12,893				7,392
		673,799				703,386				1,365,469				1,400,514
Operating income		392,250				532,828				814,402				1,043,204
Equity in earnings of affiliated companies		3,061				2,165				2,981				3,008
Gain (loss) on investments, net		497				(9,744	)			10,808				(7,733	)
Employee benefit plan expense, net		(803	)			(835	)			(1,656	)			(1,724	)
Interest and other financing expense, net		(84,834	)			(38,506	)			(164,492	)			(72,491	)
Income before income taxes		310,171				485,908				662,043				964,264
Provision for income taxes		72,380				114,413				148,927				226,773
Consolidated net income		237,791				371,495				513,116				737,491
Noncontrolling interests		1,232				1,161				2,807				2,408
Net income attributable to shareholders	$	236,559			$	370,334			$	510,309			$	735,083
Net income per share:
Basic	$	4.17			$	5.60			$	8.84			$	10.98
Diluted	$	4.12			$	5.54			$	8.74			$	10.84
Weighted-average shares outstanding:
Basic		56,720				66,078				57,726				66,964
Diluted		57,355				66,851				58,409				67,797

ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
(Unaudited)
	July 1, 2023				December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	240,382			$	176,915
Accounts receivable, net		11,035,898				12,322,717
Inventories		5,452,198				5,319,369
Other current assets		402,729				521,339
Total current assets		17,131,207				18,340,340
Property, plant, and equipment, at cost:
Land		5,691				5,691
Buildings and improvements		186,648				184,211
Machinery and equipment		1,612,005				1,583,661
		1,804,344				1,773,563
Less: Accumulated depreciation and amortization		(1,246,125	)			(1,177,107	)
Property, plant, and equipment, net		558,219				596,456
Investments in affiliated companies		62,138				65,112
Intangible assets, net		142,917				159,137
Goodwill		2,044,214				2,027,626
Other assets		597,204				574,511
Total assets	$	20,535,899			$	21,763,182
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	8,981,212			$	10,460,419
Accrued expenses		1,199,924				1,339,302
Short-term borrowings, including current portion of long-term debt		488,168				589,883
Total current liabilities		10,669,304				12,389,604
Long-term debt		3,672,828				3,182,964
Other liabilities		539,293				579,261
Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2023 and 2022
Issued - 125,424 shares in both 2023 and 2022		125,424				125,424
Capital in excess of par value		1,203,064				1,208,708
Treasury stock (69,762 and 66,175 shares in 2023 and 2022, respectively), at cost		(5,108,188	)			(4,637,345	)
Retained earnings		9,725,141				9,214,832
Accumulated other comprehensive loss		(359,096	)			(365,262	)
Total shareholders’ equity		5,586,345				5,546,357
Noncontrolling interests		68,129				64,996
Total equity		5,654,474				5,611,353
Total liabilities and equity	$	20,535,899			$	21,763,182

ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	Quarter Ended
	July 1, 2023				July 2, 2022
Cash flows from operating activities:
Consolidated net income	$	237,791			$	371,495
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations:
Depreciation and amortization		46,264				47,252
Amortization of stock-based compensation		8,852				13,885
Equity in earnings of affiliated companies		(3,061	)			(2,165	)
Deferred income taxes		(25,869	)			(8,036	)
(Gain) loss on investments, net		(497	)			9,744
Other		1,665				1,680
Change in assets and liabilities:
Accounts receivable, net		(377,117	)			(464,917	)
Inventories		58,148				(294,990	)
Accounts payable		(8,558	)			162,366
Accrued expenses		(83,267	)			103,764
Other assets and liabilities		18,845				(22,660	)
Net cash used for operating activities		(126,804	)			(82,582	)
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(16,991	)			(16,974	)
Proceeds from collections of notes receivable		95				373
Net cash used for investing activities		(16,896	)			(16,601	)
Cash flows from financing activities:
Change in short-term and other borrowings		344,389				310,315
(Repayments of) proceeds from long-term bank borrowings, net		(43,786	)			65,000
Proceeds from exercise of stock options		10,447				4,370
Repurchases of common stock		(212,416	)			(219,532	)
Settlement of forward-starting interest rate swap		56,711				—
Other		(2,474	)			(137	)
Net cash provided by financing activities		152,871				160,016
Effect of exchange rate changes on cash		25,657				(78,028	)
Net increase (decrease) in cash and cash equivalents		34,828				(17,195	)
Cash and cash equivalents at beginning of period		205,554				242,791
Cash and cash equivalents at end of period	$	240,382			$	225,596

ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	Six Months Ended
	July 1, 2023				July 2, 2022
Cash flows from operating activities:
Consolidated net income	$	513,116			$	737,491
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations:
Depreciation and amortization		92,943				95,557
Amortization of stock-based compensation		28,349				31,236
Equity in earnings of affiliated companies		(2,981	)			(3,008	)
Deferred income taxes		(33,399	)			(6,684	)
(Gain) loss on investments, net		(10,808	)			7,733
Other		2,986				2,366
Change in assets and liabilities:
Accounts receivable, net		1,324,772				(34,207	)
Inventories		(141,373	)			(755,892	)
Accounts payable		(1,513,259	)			(315,459	)
Accrued expenses		(215,583	)			60,123
Other assets and liabilities		52,237				(102,086	)
Net cash provided by (used for) operating activities		97,000				(282,830	)
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(37,105	)			(36,244	)
Proceeds from collections of notes receivable		237				20,542
Proceeds from settlement of net investment hedge		10,725				—
Net cash used for investing activities		(26,143	)			(15,702	)
Cash flows from financing activities:
Change in short-term and other borrowings		198,339				296,022
(Repayments of) proceeds from long-term bank borrowings, net		(9,426	)			910,000
Net proceeds from note offering		496,268				—
Redemption of notes		(300,000	)			(350,000	)
Proceeds from exercise of stock options		16,381				15,672
Repurchases of common stock		(516,217	)			(483,963	)
Settlement of forward-starting interest rate swap		56,711				—
Other		(142	)			(137	)
Net cash (used for) provided by financing activities		(58,086	)			387,594
Effect of exchange rate changes on cash		50,696				(85,660	)
Net increase in cash and cash equivalents		63,467				3,402
Cash and cash equivalents at beginning of period		176,915				222,194
Cash and cash equivalents at end of period	$	240,382			$	225,596

ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
	Quarter Ended
	July 1, 2023			July 2, 2022				% Change
Consolidated sales, as reported	$	8,514,516		$	9,460,842			(10.0	)%
Impact of changes in foreign currencies		—			(17,566	)
Consolidated sales, constant currency	$	8,514,516		$	9,443,276			(9.8	)%
Global components sales, as reported	$	6,682,882		$	7,461,552			(10.4	)%
Impact of changes in foreign currencies		—			(18,723	)
Global components sales, constant currency	$	6,682,882		$	7,442,829			(10.2	)%
Americas components sales, as reported	$	2,066,562		$	2,479,362			(16.6	)%
Impact of changes in foreign currencies		—			(603	)
Americas components sales, constant currency	$	2,066,562		$	2,478,759			(16.6	)%
Asia components sales, as reported	$	2,462,841		$	3,173,786			(22.4	)%
Impact of changes in foreign currencies		—			(41,205	)
Asia components sales, constant currency	$	2,462,841		$	3,132,581			(21.4	)%
Europe components sales, as reported	$	2,153,479		$	1,808,404			19.1	%
Impact of changes in foreign currencies		—			23,085
Europe components sales, constant currency	$	2,153,479		$	1,831,489			17.6	%
Global ECS sales, as reported	$	1,831,634		$	1,999,290			(8.4	)%
Impact of changes in foreign currencies		—			1,157
Global ECS sales, constant currency	$	1,831,634		$	2,000,447			(8.4	)%
Americas ECS sales, as reported	$	1,000,506		$	1,160,796			(13.8	)%
Impact of changes in foreign currencies		—			(7,376	)
Americas ECS sales, constant currency	$	1,000,506		$	1,153,420			(13.3	)%
Europe ECS sales, as reported	$	831,128		$	838,494			(0.9	)%
Impact of changes in foreign currencies		—			8,533
Europe ECS sales, constant currency	$	831,128		$	847,027			(1.9	)%

ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
	Six Months Ended
	July 1, 2023			July 2, 2022				% Change
Consolidated sales, as reported	$	17,250,944		$	18,534,967			(6.9	)%
Impact of changes in foreign currencies		—			(220,344	)
Consolidated sales, constant currency	$	17,250,944		$	18,314,623			(5.8	)%
Global components sales, as reported	$	13,538,675		$	14,660,627			(7.7	)%
Impact of changes in foreign currencies		—			(164,716	)
Global components sales, constant currency	$	13,538,675		$	14,495,911			(6.6	)%
Americas components sales, as reported	$	4,300,015		$	4,819,905			(10.8	)%
Impact of changes in foreign currencies		—			(2,297	)
Americas components sales, constant currency	$	4,300,015		$	4,817,608			(10.7	)%
Asia components sales, as reported	$	4,839,036		$	6,105,315			(20.7	)%
Impact of changes in foreign currencies		—			(87,707	)
Asia components sales, constant currency	$	4,839,036		$	6,017,608			(19.6	)%
Europe components sales, as reported	$	4,399,624		$	3,735,407			17.8	%
Impact of changes in foreign currencies		—			(74,712	)
Europe components sales, constant currency	$	4,399,624		$	3,660,695			20.2	%
Global ECS sales, as reported	$	3,712,269		$	3,874,340			(4.2	)%
Impact of changes in foreign currencies		—			(55,628	)
Global ECS sales, constant currency	$	3,712,269		$	3,818,712			(2.8	)%
Americas ECS sales, as reported	$	1,998,620		$	2,208,645			(9.5	)%
Impact of changes in foreign currencies		—			(15,946	)
Americas ECS sales, constant currency	$	1,998,620		$	2,192,699			(8.9	)%
Europe ECS sales, as reported	$	1,713,649		$	1,665,695			2.9	%
Impact of changes in foreign currencies		—			(39,682	)
Europe ECS sales, constant currency	$	1,713,649		$	1,626,013			5.4	%

ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
Three months ended July 1, 2023
	Reported GAAP measure				Intangible amortization expense			Restructuring & Integration charges			Non-recurring tax items				Other(1)				Non-GAAP measure
Operating income	$	392,250			$	7,908		$	10,333		$	—			$	—			$	410,491
Income before income taxes		310,171				7,908			10,333			—				(497	)			327,915
Provision for income taxes		72,380				1,992			2,597			(942	)			(119	)			75,908
Consolidated net income		237,791				5,916			7,736			942				(378	)			252,007
Noncontrolling interests		1,232				136			—			—				—				1,368
Net income attributable to shareholders	$	236,559			$	5,780		$	7,736		$	942			$	(378	)		$	250,639
Net income per diluted share (2)	$	4.12			$	0.10		$	0.13		$	0.02			$	(0.01	)		$	4.37
Effective tax rate (3)		23.3	%																	23.1	%
Three months ended July 2, 2022
	Reported GAAP measure				Intangible amortization expense			Restructuring & Integration charges			Non-recurring tax items				Other(1)				Non-GAAP measure
Operating income	$	532,828			$	8,830		$	2,494		$	—			$	—			$	544,152
Income before income taxes		485,908				8,830			2,494			—				9,744				506,976
Provision for income taxes		114,413				2,263			362			—				2,356				119,394
Consolidated net income		371,495				6,567			2,132			—				7,388				387,582
Noncontrolling interests		1,161				133			—			—				—				1,294
Net income attributable to shareholders	$	370,334			$	6,434		$	2,132		$	—			$	7,388			$	386,288
Net income per diluted share (2)	$	5.54			$	0.10		$	0.03		$	—			$	0.11			$	5.78
Effective tax rate (3)		23.5	%																	23.6	%

ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
Six months ended July 1, 2023
	Reported GAAP measure				Intangible amortization expense			Restructuring & Integration charges			Non-recurring tax items				Other(1)				Non-GAAP measure
Operating income	$	814,402			$	15,888		$	12,893		$	—			$	—			$	843,183
Income before income taxes		662,043				15,888			12,893			—				(10,808	)			680,016
Provision for income taxes		148,927				4,002			3,317			(942	)			(2,590	)			152,714
Consolidated net income		513,116				11,886			9,576			942				(8,218	)			527,302
Noncontrolling interests		2,807				270			—			—				—				3,077
Net income attributable to shareholders	$	510,309			$	11,616		$	9,576		$	942			$	(8,218	)		$	524,225
Net income per diluted share (2)	$	8.74			$	0.20		$	0.16		$	0.02			$	(0.14	)		$	8.98
Effective tax rate (3)		22.5	%																	22.5	%
Six months ended July 2, 2022
	Reported GAAP measure				Intangible amortization expense			Restructuring & Integration charges			Non-recurring tax items				Other(1)				Non-GAAP measure
Operating income	$	1,043,204			$	17,848		$	7,392		$	—			$	—			$	1,068,444
Income before income taxes		964,264				17,848			7,392			—				7,733				997,237
Provision for income taxes		226,773				4,573			1,567			—				1,870				234,783
Consolidated net income		737,491				13,275			5,825			—				5,863				762,454
Noncontrolling interests		2,408				273			—			—				—				2,681
Net income attributable to shareholders	$	735,083			$	13,002		$	5,825		$	—			$	5,863			$	759,773
Net income per diluted share (2)	$	10.84			$	0.19		$	0.09		$	—			$	0.09			$	11.21
Effective tax rate (3)		23.5	%																	23.5	%

(1)		Other includes (gain) loss on investments, net.
(2)		The sum of the components for diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.
(3)		The items as shown in this table, represent the reconciling items for the tax rate as reported by GAAP measure and as a non-GAAP measure.

ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
	Quarter Ended								Six Months Ended
	July 1, 2023				July 2, 2022				July 1, 2023				July 2, 2022
Sales:
Global components	$	6,682,882			$	7,461,552			$	13,538,675			$	14,660,627
Global ECS		1,831,634				1,999,290				3,712,269				3,874,340
Consolidated	$	8,514,516			$	9,460,842			$	17,250,944			$	18,534,967
Operating income (loss):
Global components	$	381,314			$	524,494			$	798,853			$	1,023,836
Global ECS		86,228				83,970				167,327				169,768
Corporate (a)		(75,292	)			(75,636	)			(151,778	)			(150,400	)
Consolidated	$	392,250			$	532,828			$	814,402			$	1,043,204

(a)

Corporate operating loss includes restructuring, integration, and other charges of $10.3 million and $12.9 million for the second quarter and first six months of 2023, respectively, and $2.5 million and $7.4 million for the second quarter and first six months of 2022, respectively.

NON-GAAP SEGMENT RECONCILIATION
	Quarter Ended						Six Months Ended
	July 1, 2023			July 2, 2022			July 1, 2023			July 2, 2022
Global components operating income, as reported	$	381,314		$	524,494		$	798,853		$	1,023,836
Intangible assets amortization expense		6,679			6,739			13,424			13,612
Global components non-GAAP operating income	$	387,993		$	531,233		$	812,277		$	1,037,448
Global ECS operating income, as reported	$	86,228		$	83,970		$	167,327		$	169,768
Intangible assets amortization expense		1,229			2,091			2,464			4,236
Global ECS non-GAAP operating income	$	87,457		$	86,061		$	169,791		$	174,004

 

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303-566-7456

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303-824-4586

Source: Arrow Electronics

FAQ

What were Arrow Electronics, Inc.'s Q2 2023 sales?

Arrow Electronics, Inc. (NYSE:ARW) reported Q2 2023 sales of $8.51 billion.

What was the net income for Arrow Electronics, Inc. in Q2 2023?

Arrow Electronics, Inc. reported a net income of $237 million, or $4.12 per share, in Q2 2023.

What was the non-GAAP net income for Arrow Electronics, Inc. in Q2 2023?

Arrow Electronics, Inc. reported a non-GAAP net income of $251 million, or $4.37 per share, in Q2 2023.

What were the key factors affecting Arrow Electronics, Inc.'s Q2 2023 results?

Arrow Electronics, Inc. posted results in a softer semiconductor market and a mixed IT spending environment.