NYSE-listed distributor Avnet has announced strong results for the fourth quarter and fiscal year 2010 ending July 3.
Worldwide sales for the quarter increased 38.5 percent year-over-year to a record US$5.21 billion.
Adjusted operating income increased 154.6 percent to US$217.1 million.
Roy Vallee, chief executive officer, said Avnet had a strong top line performance across Electronics Marketing and Technology Solutions in all regions.
Sales for Avnet Technology Solutions grew double digits year-over-year in Europe, Middle East and Africa (EMEA), the Americas and Asia for the third consecutive quarter. Growth was driven by servers, storage and networking products.
Worldwide sales for the full year increased 18.1 percent year-over-year to US$19.16 billion and increased 17.5 percent year-over-year adjusted for the impact of changes in foreign currency exchange rates.
Adjusted operating income increased 34.6 percent to US$661 million.
APAC sales
Michael Costigan, director of marketing and business innovation at Avnet Technology Solutions, said in his blog that IT distribution business in the Asia Pacific is "really growing", driven by India and China, two of the biggest economies in the world.
"Like most multi-national organisations Avnet sees the Asia Pacific region as a real region of growth and we have been out there acquiring growth," he said.
Mobile technology and the resources boom was a regional driver, he said.
Costigan also said IT distribution is consolidating in the region and Avnet is working on expanding that footprint.
Meanwhile, the Australian distribution market is headed for further consolidation with ASX-listed distributor itX entering a trading halt today following recent takeover talks. ItX has declined to comment on its possible buyer.
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