<PAGE> 1
EXHIBIT 99
[AVNET LOGO] Avnet, Inc.
2211 South 47 Street
PRESS RELEASE Phoenix, AZ 85034
OCTOBER 26, 2000
AVNET REPORTS RECORD FIRST QUARTER SALES AND EARNINGS
Phoenix, Arizona - Avnet, Inc. (NYSE:AVT) reported today record results for its
first quarter ended September 29, 2000. Net income was a record $75.6 million,
or $0.81 per share on a diluted basis, in the first quarter of fiscal 2001 more
than double the net income, excluding special charges, of $26.1 million, or
$0.37 per share on a diluted basis, in the first quarter of last year. First
quarter fiscal net income and diluted earnings per share were 189% and 119%,
respectively, higher than in last year's first quarter. Sales for the current
year's first quarter were a record $2.96 billion, up 79% as compared with sales
of $1.65 billion in the first quarter of the prior year. Including the special
charges described on the attached financial statements, the prior year's net
income and diluted earnings per share were $22.1 million and $0.31,
respectively.
Roy Vallee, Avnet's Chairman and CEO, stated "I am extremely pleased with our
record results which represent significant improvement in both sales and
earnings highlighted by operating income margin of 5.6%, the fourth consecutive
quarter of sequential improvement excluding special items." Mr. Vallee added
"These outstanding results were achieved even though our first fiscal quarter is
usually impacted by the typical industry summer slowdown thus providing further
evidence that the electronic components industry environment continues to be
very healthy. Our results also reflect benefits from our recent successful
acquisition activity."
Mr. Vallee further commented "Our Electronics Marketing group benefited from the
continued robust conditions in the global electronics components market and from
the synergy and other benefits associated with our recent acquisitions. We are
also encouraged by our Computer Marketing group's results which reflect the
overall strength in the computer market and the additional sales resulting from
the July 3, 2000 acquisition of Savoir Technology. Despite continued weakness in
the microprocessor market, our Avnet Applied Computing group posted another
quarter of sequential improvement in operating income as its embedded solutions
division experienced strong growth during the period."
Mr. Vallee concluded by saying "We have received European Union approval to
proceed with our acquisition of the EBV, WBC, Atlas Services (Europe) and RKE
Systems businesses of Veba Electronics and we expect to close the transaction by
the end of October 2000."
Phoenix, Arizona, USA-based Avnet, Inc. (NYSE:AVT), a Fortune 500 company with
annual sales exceeding $9 billion, is one of the world's largest distributors of
semiconductors, interconnect, passive and electromechanical components and
computer products from the leading manufacturers. Serving customers in 60
countries, Avnet markets, inventories and adds value to these products and
provides world-class supply-chain management and engineering services. The
Company's web site is located at www.avnet.com.
Contact: John Hovis, SVP Investor Relations or Raymond Sadowski, SVP & CFO
* Telephone (480) 643-7291 * Fax (480) 643-7370
Internet: http://www.avnet.com * e-mail: [email protected]
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AVNET, INC.
(MILLIONS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL ITEMS(1)
<TABLE>
<CAPTION>
FIRST QUARTERS ENDED
--------------------
SEPTEMBER 29, OCTOBER 1,
2000 1999(1) % CHANGE
------------- ---------- --------
<S> <C> <C> <C>
Sales $2,957.2 $1,654.3 + 79%
Income before income taxes 130.1 39.4 + 230%
Net income 75.6 22.1 + 241%
Earnings per share:
Basic $0.82 $0.31 + 165%
Diluted $0.81 $0.31 + 161%
EXCLUDING SPECIAL ITEMS
FIRST QUARTERS ENDED
--------------------
SEPTEMBER 29, OCTOBER 1,
2000 1999 % CHANGE
------------- ---------- --------
<S> <C> <C> <C>
Sales $2,957.2 $1,654.3 + 79%
Income before income taxes 130.1 45.5 + 186%
Net income 75.6 26.1 + 189%
Earnings per share:
Basic $0.82 $0.37 + 122%
Diluted $0.81 $0.37 + 119%
</TABLE>
(1) Fiscal 2000 first quarter results include the impact of incremental special
charges associated with the reorganization of the Company's Electronics
Marketing European operations amounting to $6.1 million pre-tax, $4.0
million after-tax and $0.06 per share on a diluted basis.
All per share data for fiscal 2000 has been restated to reflect a two-for-one
split of the Company's common stock approved by the Board of Directors on August
31, 2000 and distributed on September 28, 2000 to shareholders of record on
September 18, 2000.
2
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AVNET, INC.
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL ITEMS
<TABLE>
<CAPTION>
FIRST QUARTERS ENDED
--------------------
SEPTEMBER 29, OCTOBER 1,
2000 1999(1)
------------ ----------
<S> <C> <C>
SALES $2,957,227 $1,654,323
COST OF SALES 2,517,614 1,423,520
---------- ----------
GROSS PROFIT 439,613 230,803
OPERATING EXPENSES 273,369 182,360
---------- ----------
OPERATING INCOME 166,244 48,443
OTHER INCOME (EXPENSE), NET (979) 813
INTEREST EXPENSE (35,126) (9,866)
---------- ----------
INCOME BEFORE INCOME TAXES 130,139 39,390
INCOME TAXES 54,568 17,244
---------- ----------
NET INCOME $75,571 $22,146
========== ==========
EARNINGS PER SHARE:
BASIC $0.82 $0.31
========== ==========
DILUTED $0.81 $0.31
========== ==========
SHARES USED TO COMPUTE EARNINGS
PER SHARE:
BASIC 92,174 70,400
========== ==========
DILUTED 93,556 70,809
========== ==========
</TABLE>
(1) Fiscal 2000 first quarter results include the impact of incremental special
charges associated with the reorganization of the Company's Electronics
Marketing European operations amounting to $6.1 million pre-tax, $4.0
million after-tax and $0.06 per share on a diluted basis.
All share and per share data for fiscal 2000 have been restated to reflect a
two-for-one split of the Company's common stock approved by the Board of
Directors on August 31, 2000 and distributed on September 28, 2000 to
shareholders of record on September 18, 2000.
3
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AVNET, INC.
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS EXCEPT PER SHARE DATA)
EXCLUDING SPECIAL ITEMS
<TABLE>
<CAPTION>
FIRST QUARTERS ENDED
____________________
SEPTEMBER 29, OCTOBER,1
2000 1999(1)
_____________ __________
<S> <C> <C>
Sales $2,957,227 $1,654,323
Cost of Sales 2,517,614 1,423,520
__________ _________
Gross profit 439,613 230,803
Operating expenses 273,369 176,249
__________ _________
Operating income 166,244 54,554
Other income (expense), net (979) 813
Interest expense (35,126) (9,866)
__________ __________
Income before income taxes 130,139 45,501
Income taxes 54,568 19,379
__________ __________
Net Income $75,571 $26,122
========== ===========
Earnings per share:
Basic $0.82 $0.37
========== ===========
Diluted $0.81 $0.37
========== ===========
Shares used to compute earnings
per share:
Basic 92,174 70,400
========== ===========
Diluted 93,556 70,809
========== ===========
</TABLE>
(1) Fiscal 2000 first quarter results exclude the impact of incremental
special charges associated with the reorganization of the Company's
Electronics Marketing European operations amounting to $6.1 million
pre-tax, $4.0 million after-tax and $0.06 per share on a diluted basis.
All share and per share data for fiscal 2000 have been restated to reflect a
two-for-one split of the Company's common stock approved by the Board of
Directors on August 31, 2000 and distributed on September 28, 2000 to
shareholders of record on September 18, 2000.
<PAGE> 5
AVNET, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
<TABLE>
<CAPTION>
SEPTEMBER 29, JUNE 30,
2000 2000
--------------- ----------
<S> <C> <C>
Assets:
Current assets:
Cash and cash equivalents $63,542 $167,192
Receivables 2,024,892 1,750,827
Inventories 2,062,628 1,887,280
Other 75,500 67,956
---------- ----------
Total current assets 4,226,562 3,873,255
Property, plant & equipment 302,011 289,902
Goodwill 953,882 856,831
Other assets 266,277 224,367
---------- ----------
Total assets 5,748,732 5,244,355
---------- ----------
Less liabilities:
Current liabilities:
Borrowings due within one year 804,687 499,287
Accounts payable 1,125,230 1,102,510
Accrued expenses and other 364,823 301,977
---------- ----------
Total current liabilities 2,294,740 1,903,774
Long-term debt, less due within one year 1,378,094 1,438,610
---------- ----------
Total liabilities 3,672,834 3,342,384
---------- ----------
Shareholders' equity $2,075,898 $1,901,971
========== ==========
</TABLE>
5
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AVNET, INC.
SEGMENT INFORMATION
(MILLIONS)
<TABLE>
<CAPTION>
FIRST QUARTERS ENDED
SEPTEMBER 29, OCTOBER 1,
SALES 2000 1999
---------------------------------- ------------- ----------
<S> <C> <C>
ELECTRONICS MARKETING $2,093.1 $1,226.0
COMPUTER MARKETING 590.6 428.3
AVNET APPLIED COMPUTING (1) 273.5 --
-------- --------
CONSOLIDATED $2,957.2 $1,654.3
======== ========
OPERATING INCOME
----------------------------------
ELECTRONICS MARKETING $ 158.7 $ 59.3
COMPUTER MARKETING 15.9 8.6
AVNET APPLIED COMPUTING (1) 11.1 --
HEADQUARTERS (19.5) (13.4)
-------- --------
CONSOLIDATED BEFORE SPECIAL ITEMS 166.2 54.5
SPECIAL ITEMS -- (6.1)
-------- --------
CONSOLIDATED $ 166.2 $ 48.4
======== ========
</TABLE>
(1) Avnet Applied Computing, which was created by combining certain business
segments from Electronics Marketing ("EM") and Computer Marketing ("CM"),
started operating in North America as of the beginning of the second quarter of
fiscal 2000, in Europe in the third quarter of fiscal 2000 and in Asia in the
first quarter of fiscal 2001. The results for the prior periods have not been
restated and are included in EM and CM.
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