SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 12 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 18, 1998
ARROW ELECTRONICS, INC.
--------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
New York 1-4482 11-1806155
-------------------------------------------------------------------
(State or Other Juris- (Commission File (IRS Employer
diction of Incorporation) Number) Identification No.)
25 Hub Drive, Melville, New York 11747
--------------------------------------------------------------------
(Address of Principal Executive Offices) Zip Code
Registrant's telephone number, including area code: (516) 391-1300
<PAGE>
Item 5. Other Events.
On March 18, 1998, Arrow Electronics, Inc. announced
that its earnings for the first quarter of 1998 are likely to be
below analysts' expectations.
Item 7. Financial statements, Pro Forma Financial Information
and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Exhibit 99 (i) Press Release dated March 18, 1998, issued by
Arrow Electronics, Inc. announcing that its earnings for the
first quarter of 1998 are likely to be below analysts'
expectations.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ARROW ELECTRONICS, INC.
Dated: March 18, 1998 By: /s/Robert E. Klatell
----------------------
Name: Robert E. Klatell
Title: Executive Vice President
<PAGE>
EXHIBIT INDEX
Exhibit Page #
99 Press Release dated March 18, 1998, issued
by Arrow Electronics, Inc. announcing that
its earnings for the first quarter of 1998
are likely to be below analysts' expectations.
<PAGE>
Exhibit 99
ARROW ELECTRONICS, INC.
25 Hub Drive
Melville, New York 11747
CONTACT: Robert E. Klatell
Executive Vice President
(516) 391-1300
ARROW ELECTRONICS ANTICIPATES LOWER FIRST QUARTER EARNINGS
----------------------------------------------------------
FOR IMMEDIATE RELEASE
- ---------------------
MELVILLE, NEW YORK, March 18, 1998 -- Arrow Electronics, Inc.
(NYSE:ARW) announced that first quarter earnings are likely to be below
analysts' expectations.
Results for the first two months of the quarter reflect pervasive weakness in
the broad electronics markets. This highly competitive environment is
characterized by continuing pressure on average selling prices and narrowing
gross profit margins, as suppliers' output of components remains high, lead
times shortened, and most products freely available around the world.
Although global in nature, these unfavorable market conditions are most
pronounced in North America, where revenues appear to have flattened from
the fourth quarter of 1997, reflecting inventory adjustments in the channel,
the impact of lower prices, and a slowing of growth in certain computer
products markets. As a result, the first quarter's operating expenses will be
proportionately higher than anticipated and operating margins will be under
pressure.
Based upon daily order and shipment activity rates, the company does not
believe that its results in March will improve sufficiently to offset the
quarter's results to date. First quarter earnings are expected to be in the
$.40 to $.45 per share range on a diluted basis, appreciably lower than those
in both last year's first quarter ($.50 per share on a diluted basis) and
fourth quarter ($.53 per share on a diluted basis).
Arrow Electronics is the world's largest distributor of electronic components
and computer products to industrial and commercial customers.
* * *
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. This press release contains forward-
looking statements based on current expectations that could be affected by
the risks and uncertainties involved in the company's business. These risks
and uncertainties include, but are not limited to, the effect of economic and
market conditions, opportunities for acquisitions and the company's ability to
effectively integrate acquired companies, risks associated with foreign
operations, such as currency fluctuations, possible increases in shipping rates
or interruptions in shipping service, the addition or loss of suppliers,
allocation of products by suppliers, changes in market demand and pricing
pressure, the level and volatility of interest rates, the impact of current or
pending legislation and regulation, fluctuation in quarterly results, as well
as the risks described from time to time in the company's reports to the
Securities and Exchange Commission, including the company's Annual
Report on Form 10-K.
