Arrow Electronics shares fell -6% after-hours as it reported preliminary Q2 results with sales of $7.3bn, which includes $5.25bn for global components and $2.05B for global enterprise computing solutions. Loss per share (ex-certain items) is expected between $1.62 and $1.50.
Arrow plans to wind down its personal computer and mobility asset disposition business in the US and most other countries including UK, Belgium and Sweden. The business reported as part of the global components arm. The company expects to take $115m in charges primarily in Q2 and to complete the closure by the end of 2019.
“After careful market analysis indicating that business dynamics have changed since we entered this market, we have decided to wind down operations at our personal computer and mobility asset disposition business,” said CEO Michael J Long (pictured). “This will allow us to continue to focus on our cross-enterprise strategy to enable next-generation technologies such as artificial intelligence, industrial automation, smart cities and vehicles.”
"While we are disappointed that our anticipated results for the second quarter are lower than we had initially expected due to deteriorating demand conditions in the global components business, we remain confident in our long-term strategy and our ability to generate strong cash flow."