Arrow Electronics saw a 2% increase in revenues in the second quarter when adjusted for the wind-down of its PC and mobility asset disposition business and fluctuations in foreign currencies.
Under that adjusted measure, sales were $7.27 billion when compared with the second quarter of 2018. Consolidated operating income dropped 21% year-over-year, the company reported on Aug. 1. That left the net income at a loss of $548.9 million.
The company announced the wind-down of its PC and mobility asset disposition business in July.
RELATED: Arrow to close PC asset disposition unit
Doing so will allow Arrow to “further accelerate implementation of next-generation technologies such as artificial intelligence, industrial automation, smart cities and vehicles,” CEO Mike Long said on the earnings conference call according to a transcript by Seeking Alpha.
Long said the company is experiencing weaker demand in the industrial and transportation verticals. “However, based on the massive electronics growth we have forecasted for these industries, we’re confidence that growth will return in the not too distance future,” he said.
The company has also implemented a $130 million cost optimization program. “We’re proactively addressing items without control, believe we have built a diverse and resilient business,” he said. “We have a clear plan in place to preserve and improve our profits.”
At the opening of markets on Monday, Arrow’s stock price was $70.41, which was 2% below its Friday market opening. Prior to the Thursday earnings call, the stock had reached a high of $74.41.