Avnet is a Fortune 500 company and one of the world's largest distributors of electronic components, computer products, and embedded systems. In fiscal year 2001, Avnet's sales increased 29% to $12.81 billion, up from $9.92 billion in fiscal year 2000. However, challenging market conditions in the second half of the year led to a 27% decline in revenues from the third to fourth quarter. Avnet addressed this downturn through cost cutting measures and debt reduction. Going forward, Avnet is positioned for growth by leveraging its global scale and scope through strategic acquisitions and a focus on value-added services across its operating segments in electronics marketing, computer marketing, and applied computing.
Ecolab is a leading global developer and marketer of cleaning, sanitizing, and maintenance products and services. It serves customers in over 160 countries and employs over 20,000 associates worldwide. Ecolab sells products through its large direct sales force and assists customers in meeting their cleaning and sanitation needs. In 2002, Ecolab's net sales increased 47% to $3.4 billion and net income increased 11% to $209.8 million.
This annual report summarizes the financial highlights and performance of Cooper Cameron Corporation for the years 1997, 1996 and 1995. Some key points:
- Revenues increased over 30% from 1996 to 1997, reaching $1.81 billion, driven by acquisitions, pricing improvements and strong sales.
- Earnings before interest, taxes, depreciation and amortization exceeded the target of 15% of revenues, reaching 16.3%.
- Net income improved to $140.58 million in 1997 compared to a net loss in 1996.
- The CEO outlines plans to continue improving productivity and manufacturing efficiency to meet increased financial targets for 1998.
This annual report summarizes Santander Group's performance in 2010. Some key highlights include:
- Total assets grew 9.6% to €1.22 trillion and customer loans grew 6.1% to €724 billion.
- Attributable profit to the Group declined 8.5% to €8.18 billion, as profit from continuing operations fell 3.2% to €9.13 billion.
- The Group has a presence across Europe, Latin America, and the United States, with over 14,000 branches and 178,000 employees worldwide.
Tricon Global Restaurants' 2000 annual report summarizes the company's financial performance and business strategy. While the company achieved 16% earnings per share growth, same store sales declined 2% in the US, driven by 5% and 3% declines at Taco Bell and KFC respectively. The bankruptcy of their main food distributor, AmeriServe, presented challenges but the company was able to arrange interim financing and transition to a new distributor, McLane Company. Going forward, Tricon's focus is on achieving sustainable sales growth through increasing customer satisfaction worldwide and driving same store sales and new unit growth both domestically and internationally.
Allstate's revenues increased 4% to $27 billion in 1999. Operating income decreased 19% to $2.1 billion due to higher costs and charges from acquisitions and restructuring. Net income fell 17% to $2.7 billion. Investments grew 5% to $69.6 billion. In Property-Liability, premiums written rose 5% to $20.4 billion and underwriting income decreased 60% to $527 million due to increased losses and expenses.
The document is Coventry Healthcare's 2006 Annual Report. It discusses Coventry's business strategy and financial performance in 2006. Key points include:
- Coventry organized its business into three divisions - Commercial, Individual/Government, and Specialty - to capitalize on growth opportunities.
- The Commercial division continued strong growth while maintaining industry-leading margins.
- The Individual/Government division saw significant growth from the new Medicare Part D program and expanding Medicaid and individual businesses.
- All divisions performed well financially in 2006, with revenues reaching a record $7.7 billion and earnings continuing to grow.
Advanced Micro Devices reported a net loss of $1.77 billion for Q4 2007, compared to a net loss of $396 million in Q3 2007 and $576 million in Q4 2006. Revenue increased slightly to $1.77 billion from $1.63 billion the previous quarter but was flat compared to $1.77 billion in the same quarter last year. Gross margin declined to 44% from 41% last quarter due to higher costs. Operating losses increased substantially to $1.68 billion from $226 million last quarter due to a $1.61 billion goodwill impairment charge. Adjusted EBITDA was $203 million compared to $60 million in Q3 2007 and $169 million in Q4 2006
Santander Bank Annual Report 2011 Annual review 2011 BANCO SANTANDER
Banco Santander reported an attributable profit of EUR 5,351 million in 2011. Key figures include gross income increasing 5.3% to EUR 44,262 million and net operating income rising 2.2% to EUR 24,373 million. The bank strengthened its balance sheet by increasing core capital to 10.02% under Basel II and assigning EUR 1,812 million to provisions for real estate assets in Spain. Shareholder remuneration was maintained at EUR 0.60 per share for the third year.
Ecolab is a leading global developer and marketer of cleaning, sanitizing, and maintenance products and services. It serves customers in over 160 countries and employs over 20,000 associates worldwide. Ecolab sells products through its large direct sales force and assists customers in meeting their cleaning and sanitation needs. In 2002, Ecolab's net sales increased 47% to $3.4 billion and net income increased 11% to $209.8 million.
This annual report summarizes the financial highlights and performance of Cooper Cameron Corporation for the years 1997, 1996 and 1995. Some key points:
- Revenues increased over 30% from 1996 to 1997, reaching $1.81 billion, driven by acquisitions, pricing improvements and strong sales.
- Earnings before interest, taxes, depreciation and amortization exceeded the target of 15% of revenues, reaching 16.3%.
- Net income improved to $140.58 million in 1997 compared to a net loss in 1996.
- The CEO outlines plans to continue improving productivity and manufacturing efficiency to meet increased financial targets for 1998.
This annual report summarizes Santander Group's performance in 2010. Some key highlights include:
- Total assets grew 9.6% to €1.22 trillion and customer loans grew 6.1% to €724 billion.
- Attributable profit to the Group declined 8.5% to €8.18 billion, as profit from continuing operations fell 3.2% to €9.13 billion.
- The Group has a presence across Europe, Latin America, and the United States, with over 14,000 branches and 178,000 employees worldwide.
Tricon Global Restaurants' 2000 annual report summarizes the company's financial performance and business strategy. While the company achieved 16% earnings per share growth, same store sales declined 2% in the US, driven by 5% and 3% declines at Taco Bell and KFC respectively. The bankruptcy of their main food distributor, AmeriServe, presented challenges but the company was able to arrange interim financing and transition to a new distributor, McLane Company. Going forward, Tricon's focus is on achieving sustainable sales growth through increasing customer satisfaction worldwide and driving same store sales and new unit growth both domestically and internationally.
Allstate's revenues increased 4% to $27 billion in 1999. Operating income decreased 19% to $2.1 billion due to higher costs and charges from acquisitions and restructuring. Net income fell 17% to $2.7 billion. Investments grew 5% to $69.6 billion. In Property-Liability, premiums written rose 5% to $20.4 billion and underwriting income decreased 60% to $527 million due to increased losses and expenses.
The document is Coventry Healthcare's 2006 Annual Report. It discusses Coventry's business strategy and financial performance in 2006. Key points include:
- Coventry organized its business into three divisions - Commercial, Individual/Government, and Specialty - to capitalize on growth opportunities.
- The Commercial division continued strong growth while maintaining industry-leading margins.
- The Individual/Government division saw significant growth from the new Medicare Part D program and expanding Medicaid and individual businesses.
- All divisions performed well financially in 2006, with revenues reaching a record $7.7 billion and earnings continuing to grow.
Advanced Micro Devices reported a net loss of $1.77 billion for Q4 2007, compared to a net loss of $396 million in Q3 2007 and $576 million in Q4 2006. Revenue increased slightly to $1.77 billion from $1.63 billion the previous quarter but was flat compared to $1.77 billion in the same quarter last year. Gross margin declined to 44% from 41% last quarter due to higher costs. Operating losses increased substantially to $1.68 billion from $226 million last quarter due to a $1.61 billion goodwill impairment charge. Adjusted EBITDA was $203 million compared to $60 million in Q3 2007 and $169 million in Q4 2006
Santander Bank Annual Report 2011 Annual review 2011 BANCO SANTANDER
Banco Santander reported an attributable profit of EUR 5,351 million in 2011. Key figures include gross income increasing 5.3% to EUR 44,262 million and net operating income rising 2.2% to EUR 24,373 million. The bank strengthened its balance sheet by increasing core capital to 10.02% under Basel II and assigning EUR 1,812 million to provisions for real estate assets in Spain. Shareholder remuneration was maintained at EUR 0.60 per share for the third year.
The AES Corporation is a global power company that generates and distributes electricity. It has a diverse portfolio of over 42,000 MW of generation capacity across 5 continents. In 2008, AES reported $16 billion in revenue and over $35 billion in total assets. It owns and operates 127 generation facilities and manages 5 more, with 25 additional facilities under construction.
The document provides an overview of the company's recent launches, financing activities, sales results, and balance sheet for 3Q10 and 9M10. Key highlights include the launch of two new projects totaling R$126 million, a R$60 million debenture issuance, 58% growth in contracted sales for 9M10, and continued strong liquidity with a net debt to equity ratio of 36.3%.
This document discusses procedures for information exchange regarding regulations in the United States. It outlines the process of "Notice and Comment" used in the U.S., where federal regulatory agencies issue a notice of a proposed regulation, accept public comments, and then issue a final rule addressing the comments. The U.S. Federal Register is a key source for following the "Notice and Comment" process, as it publishes notices, accepts comments, and issues final regulations. Electronic tools like RegAlert can also help track regulations across U.S. states.
Allstate operates a Property-Liability business and a Allstate Financial business. The Property-Liability business saw a decrease in operating income to $1.05 billion due to higher claims expenses, lower investment income, and higher restructuring costs, partially offset by higher premiums and lower catastrophe losses. Net income for Allstate's overall business declined to $1.16 billion due to realized capital losses compared to gains the previous year and the decrease in operating income. Revenues declined slightly to $28.87 billion due to realized capital losses, though this was offset by increased premiums and investment income.
This document provides consolidated income statement and segment income information for ExxonMobil for 2007 and 2008. In 2007, ExxonMobil earned a net income of $11.9 billion, with the largest contributors being the Upstream (E&P) segments. Several large impairment charges in the International E&P segment resulted in a net loss for that segment. In 2008, ExxonMobil's net income increased to $9.6 billion for the periods reported, with the Upstream segments again contributing the most income. Certain items included large gains and impairments in various segments in both years.
Localiza Rent a Car reported financial results for the first quarter of 2013, with some key highlights:
1) Net revenue from car rentals increased slightly to R$283 million, while net revenue from fleet outsourcing grew 9% to R$142 million.
2) Consolidated net income increased 22% to R$89 million, with spreads remaining stable.
3) The car rental fleet was reduced by only 585 vehicles in the quarter, a much smaller reduction than the 4,562 vehicles sold in the first quarter of 2012, as economic growth was more moderate.
Localiza Rent a Car S.A. released its 3Q12 and 9M12 results. Some key highlights include:
- Net revenues for the car rental division increased 12.2% in 3Q12 compared to 3Q11. Fleet rental division revenues grew 16.4%.
- Consolidated net revenues increased 6.5% to R$807 million in 3Q12. The number of car rental locations in Brazil grew by 29 to 464.
- Fleet investment resumed with the addition of 3,747 cars in 3Q12 to meet demand. The utilization rate was maintained above 70%.
- Rental revenues grew 13.6% in 3Q12 while used
Localiza Rent a Car S.A. reported financial results for the third quarter and first nine months of 2012. Net revenues for the car rental division increased 12.2% in the third quarter compared to the same period last year. The number of car rental locations in Brazil grew by 29, reaching 464 locations in total. Fleet size and net investment increased substantially compared to prior periods as the company continued to grow its operations.
Reconciliations and Financial Slides from Safeway Investor Conferencefinance6
1) The document provides reconciliations of net income to adjusted EBITDA and net cash flow from operating activities to adjusted EBITDA for Safeway for 2007-2003. It also provides rolling 4 quarter reconciliations.
2) It reconciles gross margin and operating expense changes excluding factors like fuel.
3) EPS is reconciled excluding unusual items from 1992-2008G and a percentage change is calculated.
4) Free cash flow is reconciled from net cash flow from operating activities from 2013F-2005 by subtracting net cash used by investing activities.
1) Energy consumption increased in the first quarter of 2011, with captive market consumption up 6.3% and free market consumption up 12.6%. Operational losses decreased and reliability indices SAIDI and SAIFI improved.
2) EBITDA increased 10.2% and net income increased 26.5% in the first quarter compared to the previous year.
3) The methodology for the next tariff revision cycle is expected to be disclosed after July 2011, pushing back the start of the new cycle until the end of 2011.
The document summarizes CenterPoint Energy's annual report for shareholders. It discusses the company's solid financial performance in 2007, with operating income growing 13.5% and dividends increasing 13%. It highlights achievements and growth across the company's various energy delivery businesses, including natural gas distribution, interstate pipelines, and field services. It also covers the company's focus on meeting future energy needs through investments in infrastructure, energy efficiency, and renewable energy while creating long-term shareholder value.
This annual financial report summarizes Northern Trust Corporation's financial results for 2007. Key highlights include:
- Revenues reached record levels of $3.57 billion, up 17% from 2006, driven by growth in trust, investment and other servicing fees.
- Net income increased 9% to $726.9 million while earnings per share grew 8% to $3.24. Excluding Visa charges, operating earnings per share increased 22%.
- Total assets under custody or administration increased to a record high of $3.6 trillion, reflecting growth in international markets.
- Strong financial performance achieved each of the Corporation's long-term strategic targets for revenue, earnings per share, return on equity, and
Anthem Southeast reported financial results for 2001 and the first two quarters of 2002. In 2001, operating revenue was $4.4 billion and net income was $116.1 million. Medical membership increased from 2.3 million to 2.4 million between the first and fourth quarters of 2001. For the first half of 2002, operating revenue was $2.5 billion and net income was $65 million, with medical membership at 2.5 million. Benefit expenses accounted for over 80% of operating expenses in both 2001 and the first half of 2002.
- Lexmark printers are used by some of the world's most important companies every day.
- In 2006, Lexmark made progress on its action plan to improve lifetime product profitability, reduce costs, and invest in strategic growth initiatives.
- Looking ahead, Lexmark is optimistic about opportunities for growth in distributed output markets and its ability to capitalize on these opportunities through increased investment in R&D and strengthening its brand.
The world's leading provider of computer-aided design, business and manufacturing software solutions tailored for the interior design and furniture industries.
- Revenue for Lexmark in 2005 was $5.22 billion, down 2% from 2004, with gross profit margin declining from 33.7% to 31.3%. Net earnings were $356.3 million compared to $568.7 million in 2004.
- The company faced challenging market conditions in 2005, particularly in the second half of the year, and took steps to lower prices and reduce workforce to improve competitiveness.
- Lexmark continued investing in R&D, introducing new products, and maintained marketing support, though this impacted short-term financial results.
- For 2006, Lexmark plans further cost reductions and profitability improvements through manufacturing consolidation and expense reductions, while continuing investment in new
This document provides an overview and financial analysis of a corporation. It discusses the corporation's business strategy of focusing on investment management, asset servicing, and banking for institutional and affluent individual clients. It then summarizes the corporation's strong financial performance in 2006, with record net income of $665.4 million and revenue growth of 14%. Key metrics like assets under management and custody also reached record levels. The document analyzes the components of the corporation's revenues and expenses.
u.s.bancorp3Q 2004 Business Line Schedules finance13
This document provides preliminary quarterly financial data for the wholesale banking and consumer banking business lines of U.S. Bancorp for 3Q 2004 and previous quarters. Key details include net interest income, noninterest income, expenses, earnings, asset and liability balances, credit quality metrics and ratios. Wholesale banking saw higher net interest income and noninterest income versus the prior quarter. Consumer banking saw higher net interest income but lower noninterest income due to securities gains/losses. Both business lines reported higher operating earnings compared to the previous quarter.
1) The McGraw-Hill Companies achieved record financial results in 2007, with revenue growing 8.3% to $6.8 billion and net income rising 14.9% to $1 billion, however challenges emerged as the US housing bubble burst.
2) The company remains focused on providing high-quality information and insights to help customers succeed, while generating superior shareholder value through consistent earnings growth and returning $2.5 billion to shareholders in 2007.
3) While the current market turmoil is difficult to predict, the long-term prospects for the company's markets remain strong due to enduring global trends of needing capital, knowledge, and transparent business information.
This document provides financial information for Anheuser-Busch Companies, Inc. for the years 2003-2007. It includes key metrics such as barrels of beer sold, gross sales, net sales, operating income, net income, earnings per share, total assets, debt, dividends paid and five-year cumulative total returns compared to benchmarks. Overall it shows that the company experienced steady growth in most financial metrics over the 5-year period presented.
u.s.bancorp2Q 2004 Business Line Schedules finance13
This document provides quarterly financial information for the wholesale banking and consumer banking business lines of U.S. Bancorp for 2Q 2004 and comparisons to previous quarters. Key details include:
- Wholesale banking reported operating earnings of $265.7 million in 2Q 2004, down from $249.9 million in 1Q 2004. Net interest income was $399.3 million.
- Consumer banking reported operating earnings of $394.5 million in 2Q 2004, up from $283.8 million in 1Q 2004. Net interest income was $900.4 million.
- Both business lines saw increases in nonperforming assets from the previous quarter, with wholesale banking at $523
This document contains quarterly consolidated income statements for Peabody Energy Corporation for 2004 through the first quarter of 2007. It shows revenues, costs, operating profits, income before taxes, net income and earnings per share on a quarterly and annual basis. Key figures included are total revenues, operating costs and expenses, depreciation costs, operating profits, interest expenses and income, income before taxes, net income and earnings per share.
The AES Corporation is a global power company that generates and distributes electricity. It has a diverse portfolio of over 42,000 MW of generation capacity across 5 continents. In 2008, AES reported $16 billion in revenue and over $35 billion in total assets. It owns and operates 127 generation facilities and manages 5 more, with 25 additional facilities under construction.
The document provides an overview of the company's recent launches, financing activities, sales results, and balance sheet for 3Q10 and 9M10. Key highlights include the launch of two new projects totaling R$126 million, a R$60 million debenture issuance, 58% growth in contracted sales for 9M10, and continued strong liquidity with a net debt to equity ratio of 36.3%.
This document discusses procedures for information exchange regarding regulations in the United States. It outlines the process of "Notice and Comment" used in the U.S., where federal regulatory agencies issue a notice of a proposed regulation, accept public comments, and then issue a final rule addressing the comments. The U.S. Federal Register is a key source for following the "Notice and Comment" process, as it publishes notices, accepts comments, and issues final regulations. Electronic tools like RegAlert can also help track regulations across U.S. states.
Allstate operates a Property-Liability business and a Allstate Financial business. The Property-Liability business saw a decrease in operating income to $1.05 billion due to higher claims expenses, lower investment income, and higher restructuring costs, partially offset by higher premiums and lower catastrophe losses. Net income for Allstate's overall business declined to $1.16 billion due to realized capital losses compared to gains the previous year and the decrease in operating income. Revenues declined slightly to $28.87 billion due to realized capital losses, though this was offset by increased premiums and investment income.
This document provides consolidated income statement and segment income information for ExxonMobil for 2007 and 2008. In 2007, ExxonMobil earned a net income of $11.9 billion, with the largest contributors being the Upstream (E&P) segments. Several large impairment charges in the International E&P segment resulted in a net loss for that segment. In 2008, ExxonMobil's net income increased to $9.6 billion for the periods reported, with the Upstream segments again contributing the most income. Certain items included large gains and impairments in various segments in both years.
Localiza Rent a Car reported financial results for the first quarter of 2013, with some key highlights:
1) Net revenue from car rentals increased slightly to R$283 million, while net revenue from fleet outsourcing grew 9% to R$142 million.
2) Consolidated net income increased 22% to R$89 million, with spreads remaining stable.
3) The car rental fleet was reduced by only 585 vehicles in the quarter, a much smaller reduction than the 4,562 vehicles sold in the first quarter of 2012, as economic growth was more moderate.
Localiza Rent a Car S.A. released its 3Q12 and 9M12 results. Some key highlights include:
- Net revenues for the car rental division increased 12.2% in 3Q12 compared to 3Q11. Fleet rental division revenues grew 16.4%.
- Consolidated net revenues increased 6.5% to R$807 million in 3Q12. The number of car rental locations in Brazil grew by 29 to 464.
- Fleet investment resumed with the addition of 3,747 cars in 3Q12 to meet demand. The utilization rate was maintained above 70%.
- Rental revenues grew 13.6% in 3Q12 while used
Localiza Rent a Car S.A. reported financial results for the third quarter and first nine months of 2012. Net revenues for the car rental division increased 12.2% in the third quarter compared to the same period last year. The number of car rental locations in Brazil grew by 29, reaching 464 locations in total. Fleet size and net investment increased substantially compared to prior periods as the company continued to grow its operations.
Reconciliations and Financial Slides from Safeway Investor Conferencefinance6
1) The document provides reconciliations of net income to adjusted EBITDA and net cash flow from operating activities to adjusted EBITDA for Safeway for 2007-2003. It also provides rolling 4 quarter reconciliations.
2) It reconciles gross margin and operating expense changes excluding factors like fuel.
3) EPS is reconciled excluding unusual items from 1992-2008G and a percentage change is calculated.
4) Free cash flow is reconciled from net cash flow from operating activities from 2013F-2005 by subtracting net cash used by investing activities.
1) Energy consumption increased in the first quarter of 2011, with captive market consumption up 6.3% and free market consumption up 12.6%. Operational losses decreased and reliability indices SAIDI and SAIFI improved.
2) EBITDA increased 10.2% and net income increased 26.5% in the first quarter compared to the previous year.
3) The methodology for the next tariff revision cycle is expected to be disclosed after July 2011, pushing back the start of the new cycle until the end of 2011.
The document summarizes CenterPoint Energy's annual report for shareholders. It discusses the company's solid financial performance in 2007, with operating income growing 13.5% and dividends increasing 13%. It highlights achievements and growth across the company's various energy delivery businesses, including natural gas distribution, interstate pipelines, and field services. It also covers the company's focus on meeting future energy needs through investments in infrastructure, energy efficiency, and renewable energy while creating long-term shareholder value.
This annual financial report summarizes Northern Trust Corporation's financial results for 2007. Key highlights include:
- Revenues reached record levels of $3.57 billion, up 17% from 2006, driven by growth in trust, investment and other servicing fees.
- Net income increased 9% to $726.9 million while earnings per share grew 8% to $3.24. Excluding Visa charges, operating earnings per share increased 22%.
- Total assets under custody or administration increased to a record high of $3.6 trillion, reflecting growth in international markets.
- Strong financial performance achieved each of the Corporation's long-term strategic targets for revenue, earnings per share, return on equity, and
Anthem Southeast reported financial results for 2001 and the first two quarters of 2002. In 2001, operating revenue was $4.4 billion and net income was $116.1 million. Medical membership increased from 2.3 million to 2.4 million between the first and fourth quarters of 2001. For the first half of 2002, operating revenue was $2.5 billion and net income was $65 million, with medical membership at 2.5 million. Benefit expenses accounted for over 80% of operating expenses in both 2001 and the first half of 2002.
- Lexmark printers are used by some of the world's most important companies every day.
- In 2006, Lexmark made progress on its action plan to improve lifetime product profitability, reduce costs, and invest in strategic growth initiatives.
- Looking ahead, Lexmark is optimistic about opportunities for growth in distributed output markets and its ability to capitalize on these opportunities through increased investment in R&D and strengthening its brand.
The world's leading provider of computer-aided design, business and manufacturing software solutions tailored for the interior design and furniture industries.
- Revenue for Lexmark in 2005 was $5.22 billion, down 2% from 2004, with gross profit margin declining from 33.7% to 31.3%. Net earnings were $356.3 million compared to $568.7 million in 2004.
- The company faced challenging market conditions in 2005, particularly in the second half of the year, and took steps to lower prices and reduce workforce to improve competitiveness.
- Lexmark continued investing in R&D, introducing new products, and maintained marketing support, though this impacted short-term financial results.
- For 2006, Lexmark plans further cost reductions and profitability improvements through manufacturing consolidation and expense reductions, while continuing investment in new
This document provides an overview and financial analysis of a corporation. It discusses the corporation's business strategy of focusing on investment management, asset servicing, and banking for institutional and affluent individual clients. It then summarizes the corporation's strong financial performance in 2006, with record net income of $665.4 million and revenue growth of 14%. Key metrics like assets under management and custody also reached record levels. The document analyzes the components of the corporation's revenues and expenses.
u.s.bancorp3Q 2004 Business Line Schedules finance13
This document provides preliminary quarterly financial data for the wholesale banking and consumer banking business lines of U.S. Bancorp for 3Q 2004 and previous quarters. Key details include net interest income, noninterest income, expenses, earnings, asset and liability balances, credit quality metrics and ratios. Wholesale banking saw higher net interest income and noninterest income versus the prior quarter. Consumer banking saw higher net interest income but lower noninterest income due to securities gains/losses. Both business lines reported higher operating earnings compared to the previous quarter.
1) The McGraw-Hill Companies achieved record financial results in 2007, with revenue growing 8.3% to $6.8 billion and net income rising 14.9% to $1 billion, however challenges emerged as the US housing bubble burst.
2) The company remains focused on providing high-quality information and insights to help customers succeed, while generating superior shareholder value through consistent earnings growth and returning $2.5 billion to shareholders in 2007.
3) While the current market turmoil is difficult to predict, the long-term prospects for the company's markets remain strong due to enduring global trends of needing capital, knowledge, and transparent business information.
This document provides financial information for Anheuser-Busch Companies, Inc. for the years 2003-2007. It includes key metrics such as barrels of beer sold, gross sales, net sales, operating income, net income, earnings per share, total assets, debt, dividends paid and five-year cumulative total returns compared to benchmarks. Overall it shows that the company experienced steady growth in most financial metrics over the 5-year period presented.
u.s.bancorp2Q 2004 Business Line Schedules finance13
This document provides quarterly financial information for the wholesale banking and consumer banking business lines of U.S. Bancorp for 2Q 2004 and comparisons to previous quarters. Key details include:
- Wholesale banking reported operating earnings of $265.7 million in 2Q 2004, down from $249.9 million in 1Q 2004. Net interest income was $399.3 million.
- Consumer banking reported operating earnings of $394.5 million in 2Q 2004, up from $283.8 million in 1Q 2004. Net interest income was $900.4 million.
- Both business lines saw increases in nonperforming assets from the previous quarter, with wholesale banking at $523
This document contains quarterly consolidated income statements for Peabody Energy Corporation for 2004 through the first quarter of 2007. It shows revenues, costs, operating profits, income before taxes, net income and earnings per share on a quarterly and annual basis. Key figures included are total revenues, operating costs and expenses, depreciation costs, operating profits, interest expenses and income, income before taxes, net income and earnings per share.
- ALLTEL CORPORATION reported consolidated financial results for the third quarter and first nine months of 2005.
- Revenues increased 20% for the third quarter and 13% for the first nine months compared to the same periods in 2004, driven primarily by growth in wireless revenues.
- Operating income increased 11% for the third quarter and 10% for the first nine months, with wireless and communications support services seeing the largest gains. However, wireline operating income declined.
- Net income increased 12% for the third quarter and 39% for the first nine months from the prior year periods.
The document is a report from The Chubb Corporation detailing changes to how losses are presented in their property and casualty underwriting results. Specifically, beginning in Q3 2008, foreign currency fluctuations will impact "net losses paid" and "increase (decrease) in outstanding losses" differently than before. The report provides definitions, ratios, and quarterly underwriting results for Q1 2008 and 2007 to reflect these presentation modifications. Incurred losses remain unchanged.
u.s.bancorp4Q 2004 Business Line Schedules finance13
This document provides quarterly financial information for U.S. Bancorp's Wholesale Banking and Consumer Banking business lines for 4Q 2004 and comparisons to previous quarters. Some key details:
- Wholesale Banking reported net revenue of $602.7 million in 4Q 2004, with net interest income of $416.5 million and noninterest income of $186.2 million. Net income was $284.9 million.
- Consumer Banking reported net revenue of $1.41 billion in 4Q 2004, with net interest income of $957.1 million and noninterest income of $453.2 million. Net income was $402.6 million.
-
u.s.bancorp1Q 2004 Business Line Schedules - pdf versionfinance13
This document provides preliminary quarterly financial data for U.S. Bancorp's Wholesale Banking and Consumer Banking business lines for 1Q 2004 compared to previous quarters. Some key details:
- Wholesale Banking reported net revenue of $610.9 million for 1Q 2004, down slightly from $612 million in 4Q 2003. Noninterest income was $192.1 million.
- Consumer Banking reported higher net revenue of $1.336 billion for 1Q 2004, up from $1.323.6 billion the prior quarter. Noninterest income increased to $416.7 million from $386.9 million in 4Q 2003.
- Both business lines saw
This document is Parker Hannifin Corporation's 2002 Annual Report. The summary provides an overview of Parker's financial performance for fiscal years 2002, 2001, and 2000. It also discusses Parker's strategies to improve customer service, accelerate financial performance, and drive profitable growth. Parker aims to be the leading provider of motion and control systems through innovation, strategic acquisitions, and developing new markets.
1. The document is State Street Corporation's 2002 Financial Review, which includes selected financial data from 1998-2002, management's discussion and analysis of financial results, and audited consolidated financial statements.
2. Key financial highlights from the selected data include total fee revenue increasing to $2.85 billion in 2002 from $2.01 billion in 1998, and net income increasing to $1.015 billion in 2002 from $436 million in 1998, with basic earnings per share reaching $3.14 in 2002.
3. The financial review provides operating results supplemental to the GAAP consolidated financial statements to allow for comparison of ongoing business activities and trends across periods.
This document provides State Street Corporation's 2002 financial review, including selected financial data and management's discussion and analysis. Key points:
1) Net income was $1.015 billion, up $387 million from 2001, driven largely by a $495 million gain from selling the corporate trust business. Adjusting for non-operating items, net income rose $32 million.
2) Earnings per share were $3.10, up from $1.90 in 2001. Excluding non-operating items, EPS rose from $2.08 to $2.20.
3) Total revenue increased $569 million to $4.396 billion, as the company expanded its product offerings and client base despite
- ALLTEL Corporation reported financial results for the three months and twelve months ended December 31, 2004.
- For the three months ended, revenues increased 6% to $2.14 billion. Wireless revenues grew 11% and operating income increased 6% to $501 million.
- For the full year, revenues rose 3% to $8.25 billion. Wireless revenues were up 7% and operating income grew 1% to $1.92 billion.
- ALLTEL Corporation reported financial results for the three months and twelve months ended December 31, 2004.
- For the three months ended, revenues increased 6% to $2.14 billion. Wireless revenues grew 11% and operating income increased 6% to $501 million.
- For the full year, revenues rose 3% to $8.25 billion. Wireless revenues were up 7% and operating income grew 1% to $1.92 billion.
This document outlines Computer Sciences Corporation's equity grant policy, including the types of equity grants awarded, grant dates, approval process, and reporting requirements. It states that CSC issues equity grants to directors and employees to attract, retain, and motivate them. Equity grants include stock options, restricted stock, and restricted stock units. Grant dates depend on whether the recipient is a director, new hire, promotion, or current employee. Senior executive grants require higher levels of approval than non-senior grants. The company must stay within an approved annual equity grant budget.
The document outlines the bylaws of Computer Sciences Corporation. It details the principal office location, procedures for annual and special stockholder meetings, requirements for submitting items and nominations for consideration at meetings, and election of directors. Key details include timelines for submitting proposals/nominations, information required to be provided, and requirements for stockholders to present submitted items at meetings.
This document restates the articles of incorporation of Computer Sciences Corporation. It outlines the corporation's name, principal office location, nature of business, capital stock structure including 750 million shares of common stock and 1 million shares of preferred stock. It provides the board of directors authority to establish terms for preferred stock series and outlines shareholder rights and restrictions.
This document outlines a supplemental code of ethics specifically for a company's Chairman and Chief Executive Officer, Vice President and Chief Financial Officer, and Vice President and Chief Accounting Officer. The code builds upon the company's existing code of ethics and standards of conduct applicable to all directors, officers, and employees. It requires these executives to act with honesty and integrity, avoid conflicts of interest, ensure full financial disclosure, comply with all applicable laws and regulations, and promptly report any unethical or illegal conduct. Violations will be reported to the board of directors who will determine appropriate accountability actions.
This document outlines the Code of Ethics and Standards of Conduct for Computer Sciences Corporation (CSC). It discusses CSC's commitment to ethics, integrity and social responsibility. It also summarizes the principles of avoiding conflicts of interest, protecting company and customer property, providing accurate records and reports, maintaining a professional work environment, and procedures for reporting violations. Adherence to the Code is required by all CSC directors, employees and representatives.
This document outlines the corporate governance guidelines for Computer Sciences Corporation. It addresses the role of the board of directors in overseeing management and acting in good faith. It also covers the composition of the board, including the size, selection process, and independence of directors. The document provides qualifications for directors, including limits on other board service and procedures for changes in job responsibilities. It describes board committees, conduct of meetings, access to management and advisors, performance evaluations, director compensation, orientation, education, and succession planning.
This document provides an investor highlights report for Computer Sciences Corporation (CSC) for the first quarter of fiscal year 1997. It summarizes that CSC reported a 20% increase in net income and 20.5% increase in revenue compared to the same quarter the previous year. It also announces three acquisitions that further expanded CSC's industry-specific consulting services. CSC operates in strong markets for information technology services and sees continued growth opportunities.
CSC reported $1.36 billion in revenue for the second quarter of FY1997, a 20.1% increase over the previous year. CSC earned $49.3 million excluding a one-time $48.9 million charge related to an acquisition. For the first six months of FY1997, CSC reported $2.66 billion in revenue and $94.6 million in net income excluding the charge. CSC operates in commercial and government IT markets, with growing demand for outsourcing and consulting services.
Computer Sciences Corporation reported a 15.5% increase in earnings per share for the first quarter of fiscal year 1998. Revenue rose 14.2% to $1.488 billion, with growth in commercial, European, and other international sectors. While US federal revenue declined slightly due to contract completions, the company expects this sector to improve over the fiscal year as new contracts are implemented. Overall, CSC's business continues to demonstrate strong growth trends across its consulting, systems integration, and outsourcing services.
Computer Sciences Corporation reported financial results for the second quarter of fiscal year 1998, ended September 26, 1997. Revenue increased 16.5% to $1.58 billion compared to the previous year. Net income grew 18.8% to $58.6 million. The company provides management consulting, systems integration, and outsourcing services worldwide to industry and government clients. New contracts were announced during the quarter, and the company expects continued revenue growth for the remainder of the fiscal year.
The document is a quarterly report from Computer Sciences Corporation (CSC) providing key financial information and highlights for investors. It summarizes that CSC's revenue increased 17.1% in the third quarter of fiscal year 1998 compared to the previous year. Net income also rose 20.5% over the same period. The report further outlines CSC's business segments and global operations, as well as new contracts and growth in key market sectors during the quarter.
Computer Sciences Corporation (CSC) reported higher revenue and earnings for the first quarter of fiscal year 1999 compared to the same period the previous year. Revenue increased 17.8% to $1.75 billion while net income rose 22.2% to $64.3 million. The company also announced $2.8 billion in new contract awards during the quarter and saw growth across all of its major service categories. CSC's chairman attributed the strong results to continued expansion in key markets like financial services and healthcare as well as new strategic partnerships.
Computer Sciences Corporation (CSC) reported a 21.6% increase in earnings per share for the second quarter of fiscal year 1999 compared to the previous year. Revenue increased 17% to $1.85 billion driven by strong growth in Europe and the federal sector. For the first half of the fiscal year, net income rose 23.6% and revenues increased 17.4% over the previous year. CSC also acquired a majority stake in a French consulting firm, increasing its presence in that country.
Computer Sciences Corporation reported a 22.7% increase in earnings per share for the third quarter of fiscal year 1999 compared to the previous year. Net income increased 25.9% while revenues rose 15.9%. Growth was driven by strong performance in European operations, consulting, financial services, and lower interest costs. For the first nine months of the fiscal year, net income increased 24.5% while revenues were up 16.9% year-over-year.
Computer Sciences Corporation (CSC) reported a 20% increase in earnings per share and a 21.7% increase in net income for the first quarter of fiscal year 2000 compared to the same quarter the previous year. Revenue increased 17.6% to $2.06 billion driven by increased demand for outsourcing, enterprise solutions, e-business, and systems integration. CSC also announced over $4.7 billion in new business awards during the quarter and expects e-business revenue to triple to nearly $600 million for the full fiscal year.
Computer Sciences Corporation (CSC) reported higher earnings and revenue for the second quarter of fiscal year 2000 compared to the same period last year. Earnings per share rose 22.2% and net income increased 22.7% due to strong global commercial growth and improved operating performance. CSC continues to see significant demand for outsourcing and other services and rapid growth in requests for e-business solutions.
Computer Sciences Corporation (CSC) reported financial results for the third quarter of fiscal year 2000, ending December 31, 1999. Revenue was up 14.9% to $2.4 billion compared to the previous year. Earnings per share, excluding special items, were 66 cents, a 20% increase over the previous year. CSC received $3.5 billion in new business awards during the quarter and $9.6 billion year-to-date. Research analysts from various firms cover CSC stock, which trades on the New York Stock Exchange.
Computer Sciences Corporation (CSC) reported financial results for the first quarter of fiscal year 2001, ended June 30, 2000. Revenues increased 11.8% to $2.46 billion due to strong growth in the U.S. federal government, Asia-Pacific, and commercial outsourcing sectors. Net income grew 13.5% to $96 million and earnings per share increased to 56 cents. CSC also secured $3.3 billion in new business awards during the quarter and remains on track to achieve its target of $1 billion in e-business revenue for the fiscal year.
Computer Sciences Corporation (CSC) reported strong financial results for the second quarter of fiscal year 2001, with revenues increasing 12% to $2.5 billion and net income growing 17.1% to $109 million. For the first six months of the fiscal year, revenues were up 11.9% to $5 billion and net income increased 15.4% to $205 million. The company secured $7.7 billion in new contracts for the first half, fueling anticipated growth in the second half of the year.
Computer Sciences Corporation (CSC) reported financial results for the third quarter of fiscal year 2001, ended December 29, 2000. Revenues increased 12.9% to $2.7 billion due to growth in the federal government vertical market and commercial outsourcing. Earnings before special items increased 9.6% to $122.9 million. Major new business awards totaled $1.8 billion for the quarter. For the nine-month period, revenues increased 12.2% to $7.6 billion and earnings before special items increased 13.1% to $327.9 million, though results were impacted by currency effects and restructuring costs. CSC also discussed several new contracts and engagements.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
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Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
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Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
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Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
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Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
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2. 1 Financial Review
Building a successful company
is both art and science. Using a “best people, best practices” philosophy,
3 Letter to Shareholders
Avnet combines the art of leadership, structure and function with the
11 Electronics Marketing
science of technology to create a company that provides the utmost value
to its customers, suppliers, employees and shareholders, globally.
19 Computer Marketing
Phoenix-based Avnet, Inc. (NYSE:AVT), a Fortune 500 company, is one of
25 Applied Computing
the world’s largest distributors of electronic components, computer
products and embedded systems from leading manufacturers. Serving
30 Board of Directors
customers in 63 countries, Avnet markets, inventories and adds value to
31 Financials
these products and provides world-class supply-chain management and
engineering services. Avnet’s Web site is located at www.avnet.com.
61 Shareholders’ Information
3. 1
financial
review
2001 2000 1999 1998 1997 1996
AVNET, INC.
(In millions, except for per share and ratio data)
SALES
INCOME:
IN BILLIONS
Sales $12,814.0 $9,915.0 $6,805.7 $6,334.6 $5,729.7 $5,469.3
Gross profit 1,865.5 (d) 1,444.8 (c) 1,048.0 (b) 1,081.1 (a) 1,042.1 1,030.8
12.81
Operating income (d) (c) (b)
293.5 (a)
253.7 368.0 182.5 338.6 354.8
Income taxes (d) (c) (b) (a)
87.2 121.1 204.8 125.6 136.6 140.6
Earnings 0.1 (d) 162.6 (c) 180.3 (b) 165.9 (a) 191.3 193.4
9.92
FINANCIAL POSITION:
Working capital 1,177.4 2,368.7 1,977.0 1,899.1 1,521.4 1,491.5
6.81
Total assets
6.33
5,864.1 5,934.4 3,563.4 3,308.6 2,898.3 2,809.3
5.73
5.47
Total debt 2,221.6 2,153.9 998.5 1,017.9 514.6 508.5
Shareholders’ equity 2,374.6 2,246.7 1,718.8 1,628.5 1,764.6 1,736.2
PER SHARE(e):
Basic earnings — (d) 1.52 (c) 1.89 (b) 1.63 (a) 1.78 1.81
Diluted earnings — (d) (c) (b)
1.59 (a)
1.50 1.86 1.74 1.77
96 97 98 99 00 01
Dividends .30 .30 .30 .30 .30 .30
Book value 20.15 19.88 18.15 16.86 16.80 16.27
RATIOS:
Operating income
margin on sales 2.0% (d) 3.7% (c) 2.7% (b) 4.6% (a) 5.9% 6.6%
AVNET, INC.
Profit margin on sales — (d) (c) (b) (a)
1.6% 2.6% 2.6% 3.3% 3.6%
DILUTED EARNINGS PER SHARE
Return on equity — (d) (c) (b) (a)
8.1% 11.0% 9.5% 10.8% 11.8%
*Before special items described in notes (A-O)
Return on capital (d) (c) (b) (a)
2.2% 6.1% 8.1% 7.7% 9.4% 10.0%
Quick .7:1 1.1:1 1.8:1 1.9:1 1.5:1 1.7:1 1.99
Working capital 1.5:1 2.2:1 3.3:1 3.9:1 3.5:1 3.6:1
1.77
1.78
1.74
Total debt to capital 48.3% 48.9% 36.8% 38.5% 22.6% 22.7%
1.71
* Income amounts are from continuing operations and net assets from discontinued operations have been classified as current assets.
All amounts have been restated for the acquisition of Kent Electronics corporation which has been accounted for using the
“pooling-of-interests” method.
1.22
(a) Includes the net negative impact of $14.9 pre-tax and $12.5 after-tax ($0.12 per share on a diluted basis) for (i) the gain on the
sale of Channel Master of $33.8 pre-tax and $17.2 after-tax, (ii) costs relating to the divestiture of Avnet Industrial, the closure
of the Company’s corporate headquarters in Great Neck, New York, and the anticipated loss on the sale of Company-owned real
estate, amounting to $13.3 pre-tax and $8.5 after-tax, and (iii) incremental special charges associated with the reorganization of
EM, amounting to $35.4 pre-tax and $21.2 after-tax.
(b) Includes the net gain on exiting the printed catalog business recorded in the fourth quarter of 1999 offset by special charges
recorded in the first quarter associated with the reorganization of EM. The net positive effect on 1999 pre-tax income, net income
and diluted earnings per share were $183.0, $64.0, and $0.64, respectively.
(c) Includes special charges associated with: (i) the integration of Marshall Industries, Eurotronics B.V. (SEI) and the SEI Macro
Group into EM, (ii) the integration of JBA Computer Solutions into CM North America, (iii) the reorganization of EM Asia,
(iv) the reorganization of EM’s European operations including costs related to the consolidation of EM’s European warehousing
operations and (v) costs incurred in connection with certain litigation brought by the Company. The total special charges for
96 97 98 99 00 01
2000 amounted to $49.0 pre-tax, $30.4 after-tax and $0.28 per share on a diluted basis.
(d) Includes the impact of incremental special charges related to the acquisition and integration of Kent Electronics, which was
accounted for as a “pooling-of-interests,” and other integration, restructuring and cost cutting initiatives taken in response to current
business conditions. The special charges amounted to $327.5 pre-tax ($80.6 included in cost of sales and $246.9 included in operating
expenses) and $236.7 after-tax, or $1.99 per share on a diluted basis for the year ($2.01 per share for the fourth quarter).
(e) All per share data 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. These shares were distributed on September 28, 2000 to shareholders of record on September 18, 2000.
4.
5. 3
AVNET, INC. FY 2001
SALES BY OPERATING GROUP
AC
letter to CM EM
shareholders % OF
$ BILLIONS AVNET'S SALES
EM $8.29 64.7%
CM $2.85 22.3%
AC $1.67 13.0%
To Our Shareholders:
ELECTRONICS MARKETING (EM)
At no time in my 30-year career in the high tech industry have I experienced
Through focused divisions, EM
a year more novel, or more like a novel, than fiscal 2001. It was a tale of two
markets, inventories and adds value,
markets – literally, the best of times during the first half, and the worst of times
via services such as supply-chain
during the second half, as we experienced an unprecedented confluence of events
management and engineering design,
precipitating the most severe downturn in the history of the technology industry.
to semiconductors, interconnect,
passive and electromechanical
Avnet ended the first half of FY’01 with revenues totaling $6.82 billion, equaling,
devices, radio frequency and
in just six months, the Company’s total FY’99 revenues. Record diluted earnings
microwave devices, and specialty
per share (EPS) of $0.69 in the second quarter were more than double what they
products from leading component
were the year before. Other key financial metrics were up as well, including
manufacturers.
operating margin, return on capital employed and sales per employee.
COMPUTER MARKETING (CM)
Avnet finished the year with sales of $12.81 billion, up 29 percent versus a record
CM builds channels to market that
FY’00, continuing a strong growth trend that has averaged 18.6 percent
provide focused sales, marketing and
compounded annually over the past five years. As a result, FY’01 revenues were
value-added distribution of enterprise
more than double the $6.33 billion reported just three years ago.
computing systems, software,
storage and services for value-added
While the Company performed admirably on a year-over-year basis, that success
resellers, and enterprise solutions
was tempered by the challenging conditions that converged upon the industry
for end users.
in the second half of FY’01. Cyclicality in the electronic components market,
especially with regard to semiconductors, is to be expected, and Avnet is adept
APPLIED COMPUTING (AC)
at anticipating and dealing with such volatility. However, by December three
AC markets and adds value through
significant events had coincided: the worldwide economy slowed; demand for
engineering assistance, supply-chain
electronic equipment fell, especially in the saturated communications market; and
management and end product
the supply of electronic components increased significantly. As a result, by the
integration to embedded technology
end of FY’01 the worldwide supply chain was bloated with excess inventory.
subsystems, including computer
In the second half of the fiscal year, Avnet’s bookings plummeted and revenues
platforms and servers, boards and
fell 27 percent from the third to the fourth quarter. Consequently, just two quar-
memory modules, mass storage,
ters after posting record results diluted EPS declined to just $0.05, before special
peripherals, microprocessors, flat
charges, for the year-ending June quarter.
panel displays and operating systems.
6. After three days spent forging the Company’s future at the triennial Global Managers Meeting, participants gather to
share their impressions at the closing ceremony. Below, a signature is added to a poster highlighting Avnet’s core values,
unveiled at the November 2000 meeting in Phoenix, Arizona.
Avnet is Positioned to Excel
By aggressively adjusting to challenging business conditions
while continuing to build a company of industry-leading scope and scale, Avnet
is molding a lean, global company positioned to excel when the market rebounds.
AVNET, INC. FY 2001
Avnet’s aggressive acquisition strategy is aimed squarely at creating the scope and
SALES BY REGION
economies of scale necessary to increase shareholder value. In pursuing this
strategy, the Company has reduced its cost structure, expanded its customer and
ASIA
supplier relationships, broadened its geographic reach, and added the skills and
EMEA knowledge of talented, experienced employees. Since FY’99 began, we have
completed the acquisition of 19 companies with top-line historical revenues
AMERICAS
totaling more than $6.7 billion. In FY’01 alone, Avnet finalized five acquisitions
with historical revenues totaling approximately $3.6 billion, reducing our exposure
to the semiconductor cycle, establishing a new networking business relationship
% OF
with Cisco Systems, and substantially increasing our presence in Europe and
$ BILLIONS AVNET'S SALES
AMERICAS $8.75 68.3% Asia. Avnet has become extremely efficient at integrating acquisitions, completing
EMEA $3.51 27.4%
the integration of Kent’s components business just 25 days from the close of
ASIA $0.55 4.3%
the transaction.
In the second half of the fiscal year, significant tactical focus was required to
navigate the downturn. Synergies created by the rapid integration of acquisitions,
coupled with aggressive cost cutting measures including the reduction of Avnet’s
census by approximately 1,100 people, resulted in selling, general and adminis-
trative savings of more than $70 million annualized by the end of the June quarter.
Costs should continue to fall at least through the first half of FY’02. We also
reduced our debt by $752 million (before taking into account the $350 million
reduction due to our accounts receivable securitization program) from December
7. 5
letter to
shareholders AVNET, INC. FY’01 ACQUISITIONS
Historical annual revenues totaling
approximately $3.6 billion
Savoir Technology Group, Inc.
North America
July 2000
Atlas Services (Europe), EBV
Elektronik, RKE Systems, WBC
Europe
October 2000
RDT Technologies Ltd.
Israel
February 2001
to June, primarily by lowering working capital by $813 million. Consequently, by
the end of the fiscal year, Avnet’s debt-to-capital ratio fell to 48.3 percent, after
Sunrise Technology Limited
reaching a high of 56.1 percent at the end of the second quarter of FY’01.
People’s Republic of China
May 2001
Leveraging Avnet’s Scope and Scale
Kent Electronics Corporation
North America
Following an era of consolidation in the industry, Avnet is a leading global player
June 2001
within distribution’s total available market (DTAM). Yet the DTAM represents
only a fraction of the technology industry’s total available market (TAM) of more
than $400 billion for the products and services we provide. Avnet’s rapid growth
has created the opportunity for our Company to take advantage of the scope and
economies of scale created over the past decade to improve and expand our existing
businesses and push ever farther into the greater technology market. And for a
services business such as Avnet, the benefits of scale – the ability to leverage our
investments across our operations – are very important. Avnet enters FY’02 with
more leverage for earnings growth and return on capital than ever before. We are
structured to focus on the specialized, value-added distribution of technology
products, and we are committed to creating innovative services to capitalize on
untapped opportunities.
Avnet’s Operating Groups: Structured for Specialization
As an $8.29 billion global operating group, Electronics Marketing (EM) now
goes to market through focused divisions in the Americas, EMEA (Europe, the
Middle East and Africa) and Asia. Empowered to make swift decisions and
respond rapidly, these focused divisions – specializing by product, service or
Avnet is committed to attracting, developing and
retaining a highly skilled, diverse global workforce.
8. Avnet’s Data Center in Chandler, Arizona is the heart of the Company’s worldwide information services infrastructure.
AVNET’S INFORMATION TECHNOLOGY STRATEGY
Global Business Platform
Avnet’s centralized IT infrastructure
leverages the Company’s economies
of scale in providing networking, geography – increase market share for our suppliers’
data center security and operations. products, while decreasing our customers’ time to market
Through SAP, Avnet EM is creating and cost of doing business.
a single, global, multicurrency and
multilingual IT platform. Computer Marketing (CM) has prospered by focusing on medium-size enterprises
and Fortune 500 departmental solutions with a very select group of industry-
Global Communications leading vendors. CM derived the vast majority of its $2.85 billion in FY’01 sales
Avnet’s wide area network gives from six of the world’s best-known information technology (IT) brands: Cisco,
employees access to vital customer Compaq, EMC, Hewlett-Packard, IBM and Oracle.
and supplier information. The
Global Data Warehouse consolidates Applied Computing (AC) offers a portfolio of specialist divisions focused by
data to optimize decision-making product and geography. AC, which will celebrate its second full year in business
utilizing enterprise-wide information. in October 2001, now derives 73 percent of its $1.67 billion in revenue from
An expanded Electronic Commerce eight strategic supplier relationships.
Gateway increases Avnet’s electronic
commerce and global trading
Creating Opportunity Through Innovation
capabilities, including electronic
data interchange transactions.
Across all operating groups, Avnet has a passion for challenging conventional
Internet Alliances industry wisdom. We are creating innovative services to increase value delivered
Avnet is establishing or participating and generate new revenue streams with higher margins.
in strategic Internet hubs, portals
and links that deliver new value Technology industry analysis firm IDC projects annual revenues in the exploding
and make it easier than ever to global electronic supply-chain services sector to increase from $23 billion in 2000
do business with us in an industry to $83 billion by 2005. In keeping with this trend, EM’s $2.72 billion Avnet
evolving from a linear supply chain Integrated Material Services division has grown at a five-year compound annual
to a multidirectional supply web.
9. 7
letter to AVNET’S INFORMATION TECHNOLOGY ACCOLADES
shareholders Lauded throughout FY’01, Avnet’s IT
infrastructure is the foundation
upon which the Company constructs
its global technology marketing and
services initiatives.
Avnet ranks first in its industry
I
in the “InformationWeek 500,”
a list of the largest and most
innovative IT users, and garners
gold citations for technology
strategy, e-business strategy, business
practices and customer knowledge.
FORBES magazine names
I
www.avnet.com the “Best of
the Best” B2B Web site in the
distribution industry.
growth rate of 36.9 percent. In addition, EM has begun the beta testing process
on a series of new services that will leverage Avnet’s global IT capabilities and Avnet places seventh among
I
other resources to expand strategic relationships. COMPUTERWORLD magazine’s annual
listing of the “100 Best Places to
In FY’00, CM’s Avnet Hall-Mark division successfully responded to Hewlett- Work in IT.” Avnet has been
Packard’s Channel 2000 challenge – a program designed to maximize the supply-chain honored numerous times in the
efficiencies of its distribution channel – and emerged with an innovative business ranking’s eight-year history.
model. With this model in place in FY’01, the value-added services we once
A top e-business innovator, Avnet
I
provided as an adjunct to hardware sales have been unbundled and are now
ranks 13th in EWEEK magazine’s
provided separately for a fee. This new structure has broad implications across
“FastTrack 500” list, rewarded for
the Company, proving the viability of an entirely new model for marketing and
deploying e-business technologies
selling higher-margin services.
like customer relationship
management applications,
AC brings innovative thinking to its customers through its Internet-based service
e-commerce applications, Internet-
for design engineers, Avnet FasTrac™. AC also recently opened its new engineering
enabled data warehouses and
labs and technology showcases in Phoenix, Arizona, and Peabody, Massachusetts.
high-speed networking.
The labs provide a technical, resource-rich environment where customers and
INTERNETWEEK magazine names
AC engineers work side by side to reduce design time to market by integrating I
Avnet one of its “100 e-Business
industry-standard subsystems. The showcases were built in conjunction with top
Leaders,”recognized for success-
suppliers like IBM, Intel, Microsoft and Motorola to demonstrate applications for
fully generating business
products and technologies just coming to market.
through the Internet.
Avnet launched a new, enterprise-wide global objective for FY’02 to further increase
focus on the creation of services-based business models. Steve Church, formerly
co-president of EM global, is driving this objective across our enterprise as senior
vice president of services business development, reporting directly to me.
Avnet employees give generously of their time and
money to a variety of charitable causes benefiting
the communtities in which they live and work.
10. With locations in 63 countries, communicating consistently with employees is essential. Here, chairman and CEO
Roy Vallee (left), with the assistance of Bob Zierk, vice president, global human resources, discusses Avnet’s financial
status and highlights at the Town Hall, broadcast quarterly via satellite.
Employees Drive Our Success
Innovation is the only sustainable differentiator. Avnet’s
AVNET, INC. FY 2001
continuous innovation and rapid growth would not be possible without the
SALES BY PRODUCT
contributions of dedicated, industry savvy, highly skilled employees. In every
P&E case, the Avnet team has embraced the challenges placed before it, from estab-
lishing a global IT infrastructure, to integrating acquisitions, to managing the
CONNECTORS
changes inherent in restructuring, to developing and embracing new ways of
COMPUTER doing business in an established industry. Their knowledge is Avnet’s intellec-
SEMICONDUCTORS
PRODUCTS
tual capital – the currency of the New Economy – and Avnet is committed to
attracting, developing and retaining the best employees in the business.
% OF
With another Avnet veteran at the helm, former CM president Rich Ward, we
$ BILLIONS AVNET'S SALES
SEMICONDUCTORS $7.10 55.4% have instituted an Organizational Development Program that provides a
COMPUTER PRODUCTS $3.95 30.8%
framework for executive, managerial and individual contributor training and
CONNECTORS $0.74 5.8%
advancement. In addition to improving Avnet’s performance by developing the
PASSIVES AND
ELECTROMECHANICAL skills of our team, this effort provides a robust succession planning activity.
DEVICES $1.02 8.0%
Focusing on Shareholder Value
Sculpting a great company is a fine art. By optimizing our existing businesses and
driving new growth in services within the technology market, Avnet is molding
a lean, flexible and highly competitive Company that should generate increasing
returns on capital while growing EPS. We are committed to consistently increasing
shareholder value, and that ultimate objective is embodied in every decision we
make. Janice Miller, Avnet’s new vice president of corporate strategic planning,
is helping our executive team identify promising opportunities in the global
marketplace and develop high-impact strategic plans to take advantage of them.
11. 9
letter to
shareholders
“While we cannot control the
market in which we compete, we
can – and do – determine how
well we compete within it.”
—Roy Vallee
Looking Ahead
Clearly, while we cannot control the market in which we compete, we can – and
do – determine how well we compete within it. Avnet is focused on that which
we can affect to create advantages for our Company. We are committed to long-
term leadership, and we have never been better positioned. Avnet began FY’02
number one in its industry. From the electronic components that feed the supply
chain, to the subsystem building blocks that reduce time to market, to the value-
added mid-range computing products space, we are a market leader. Through
focus, specialization and innovation, Team Avnet is aggressively expanding our
Company’s boundaries beyond traditional distribution, transforming us into the
premier technology marketing and services company, globally.
Thank you, Team, for your many distinguished accomplishments in creating
value for our suppliers, customers and shareholders during both halves of a novel
FY’01. And thank you, Avnet shareholders, for your continued support. Despite
entering the new year with substantial environmental challenges, I am confident
of Avnet’s ability to compete. As always, I welcome your comments and suggestions.
Roy Vallee
Chairman and Chief Executive Officer
Steve Church Janice Miller Rich Ward
12.
13. 11
electronics
marketing “Avnet Electronics Marketing’s
global organization will
continue to focus on improved
earnings and return on working
Avnet Electronics Marketing (EM) is the largest of Avnet’s three operating groups,
capital, executing strategies
posting record FY’01 revenues of $8.29 billion. Led by president Brian Hilton,
that leverage our proven
EM distributes semiconductors, interconnect, passive and electromechanical
abilities in technical services
(IP&E) components, radio frequency (RF) and microwave products, and specialty
and supply-chain management.
products from leading manufacturers. For its customers and suppliers, EM also
Our customers depend on us
enhances those products through value-added services such as marketing, engi-
to help them get to market
neering design, and inventory and supply-chain management.
faster and more profitably.”
EM’s Global Scope —Brian Hilton
As part of a strategic initiative to create focused businesses able to respond rapidly
and efficiently to customers’ and suppliers’ needs, acquisitions continued to play a
key role for EM globally. EM has amassed considerable expertise in integrating
acquisitions, with global information technology (IT), human resources, finance and
other support teams acting swiftly to analyze and adapt systems and processes using
a “best people, best practices” approach. EM is now positioned to take advantage
of the scope and economies of scale created during its decade of global expansion.
Specialized Business Divisions
As FY’02 began, EM launched divisions focused by product, service and/or
geography in the Americas, Asia and EMEA (Europe, the Middle East and
Africa). Called by a European editor, “one of the biggest distribution shake-ups
ever,” these specialist models, which have been dubbed “speedboats,” take
advantage of Avnet’s global operational expertise while increasing organizational
clarity and effectiveness. Decision-making within the divisions takes place
closer to those it affects, and internal metrics and incentives have been redefined
to yield higher value.
The specialist business models arise from the conviction that a focused approach
pays off for customers and suppliers. Entrepreneurial business divisions provide
expertise and specialization. Customer projects are optimized from design to Value-added services are an integral part
of Electronics Marketing’s business.
14. Technicians in Electronics Marketing’s Device Programming Center in Chandler, Arizona label semiconductors
programmed for a customer-specific application.
production, improving time to market and reducing
costs. For multinational customers, EM’s knowledge of
local customs and laws in the 63 countries where it does
business is invaluable as manufacturing and design are transferred from one loca-
EM SALES GROWTH
IN BILLIONS
tion to another. For companies doing business in one geographic region, EM
operates as a part of their community, with local staff who understand a country’s
or region’s nuances able to access Avnet’s vast global resources.
8.29
For suppliers, specialization means the EM teams supporting their products are
7.11
knowledgeable about the latest technology and applications, making it easier to
get information to customers. During the past two years, EM has taken a critical
5.11
4.79
4.41
look at its line card. By reducing its number of suppliers, EM has eliminated
unprofitable lines and is better able to deliver the highest value to a more limited
group. EM expanded its global relationships with some suppliers in response
to the requirements of global original equipment manufacturer (OEM) customers.
In the race to get products to market first, customers and suppliers depend on EM
to transfer accurate product knowledge to customers’ designers quickly, ensuring
97 98 99 00 01
design wins early in the product development process. Here, execution is the key
to success, and EM is now positioned to execute even more effectively.
Spotlight on Services
The dramatic events impacting the global electronics supply chain in the second
half of FY’01 created an unprecedented opportunity for EM in its services sphere.
Massive inventory misalignments, especially in the telecommunications industry,
have prompted companies to take sober looks at their supply chains. OEMs and
electronics manufacturing service (EMS) providers are reducing the number of
15. 13
electronics EM INTEGRATIONS
marketing Atlas Services (Europe),
EBV Elektronik and WBC
Germany-based, value-added semi-
conductor distributors EBVand WBC
catapult EM to the No. 1 value-added
distributor of electronic components
in Europe. EBV, WBC and their
logistics support group, Atlas Services,
joined EM through the acquisition
of Europe’s VEBA Electronics Group
of companies from E.ON AG.
Avnet Components Israel Ltd.
Avnet Israel, formed from the
merger of Avnet-Gallium Co. Ltd.
and RDT Technologies Ltd., both
strategic suppliers with whom they do business, and are taking advantage of new
of Tel Aviv, makes EM the largest
efficiencies created by the Internet. The outsourcing trend continues to unfold,
value-added electronic components
with OEMs handing over not only their manufacturing to EMS providers, but
distributor in Israel.
using alternative resources for engineering design and other services as well.
Sunrise Technology Limited
Consequently, services such as supply-chain management are imperative to success
Avnet gains a firm foothold in the
in the electronics industry. Analysts at Pittiglio, Rabin, Todd and McGrath report
People’s Republic of China through
that companies best in class in this important metric save 3 to 4 percent of their
the acquisition of this electronic
total revenue compared to their competitors, a figure that directly impacts the
components distribution group
bottom line.
serving domestic and multinational
OEMs and contract manufacturers.
Avnet Integrated Material Services (IMS), EM’s supply-chain arm, has grown sales
Sunrise is the No. 1 or No. 2 distributor
at an impressive 36.9 percent over the past five years. IMS has become a trusted
in the region for all its suppliers.
part of the supply chains of more than 600 customers worldwide.
Kent Components
Avnet Design Services (ADS) has 15 design centers around the world from
The North American IP&E device
which to provide solutions for customers. ADS engineers, with an average of
specialist makes Avnet the largest
more than 15 years of experience, influence the bill of materials early in the
IP&E distributor in the Americas.
product development process by focusing on firmware development, ASIC
Kent Components became part of the
circuit designs and systems-level design services. OEMs are increasingly
EM family through the acquisition
outsourcing certain aspects of their design process to speed overall product
of Kent Electronics Corporation.
development, and ADS allows EM to capture this new business. Such service
businesses are expected to improve Avnet’s return on capital by generating
higher margins with minimal working capital.
New supply-chain services – some adjuncts to our traditional distribution business,
some standalone entities – will be formally launched early in FY’02, leveraging
existing IT capabilities and strategic relationships. Creating services businesses
Electronics Marketing celebrates the grand opening
of its 35,000 square foot sales, materials management
and warehouse facility in Guadalajara, Mexico.
16. With a substantial investment in state-of-the-art technology, plus the experienced, dedicated and well-trained employees
who know how to get the most out of it, the Electronics Marketing Logistics Center in Chandler, Arizona is a world-class
ISO 9002 certified facility. EM is core competent in the storage, retrieval, value-add and shipping of electronic components.
HELPING CUSTOMERS MANAGE RISK
Some companies in the supply chain
manage risk better than others.
The semiconductor supply chain that are not capital intensive, coupled with realigning the
is immensely complex due to a business by product, should also help EM accelerate earn-
high level of product variability, ings growth while improving return on capital employed.
short product life cycles and
demand variability. According
Information Technology
to a study completed this year
by AMR Research, there is clear
evidence that collaborative Underlying and interconnecting EM’s focused divisions is Avnet’s extensive IT
inventory management can infrastructure. IT is to distribution what research and development are to
reduce inventory exposure by manufacturing organizations: investments of strategic importance to the future.
as much as 30 percent, while The electronics manufacturing world continues its migration to Web-based
reducing downtime related to commerce, and EM has invested more than $100 million in IT initiatives over the
shortages by more than 75 percent. last five years to solidify its industry leadership position. Counted among those
investments are strategic alliances with Internet-based businesses that are creating
EM customers have reported that service offerings set to launch early in FY’02. To provide global customers with
use of Avnet Integrated Material an integrated IT platform, EM continues to deploy SAP 4.0 in EMEA and Asia,
Services’ (IMS) tools and techniques and will be moving to SAP 4.6 in its new services division.
have helped them weather the
storm of the current industry
Americas
cycle. Over the past five years,
IMS has grown at a compound
annual rate of 36.9 percent. EM’s acquisition and organic growth caused market share gains in the U.S.,
Canada, Latin America and South America. In North America, EM’s product-
focused business division strategy was exemplified by the acquisition of Kent
Electronics’ specialized IP&E business, Kent Components. Combined with
EM’s existing IP&E business, the newly branded Avnet Kent was launched as
FY’02 began, with Kent Electronics’ former CEO, Larry Olson, as president.
17. 15
electronics
marketing RIDING THE NEXT E-MARKET WAVE
There is growing recognition that
the key to collaboration is the
convergence of business-to-business
(b2b) communications with supply-
chain management techniques,
powered by accurate and reliable
information. Even with the dot-com
shakeout, there is still much
interest and investment in business
services, as expectations about the
benefits of collaboration rise.
While Avnet Integrated Material
Services (IMS) has experienced
Phil Gallagher, an 18-year Avnet veteran and formerly EM’s vice president of
dramatic growth during the past
sales in North America, stepped up as president of EM Americas’ semiconductor
five years, it currently serves
division, which includes the Avnet RF & Microwave and Cilicon™ semiconductor
only 600 of the tens of thousands
business units.
of EM customers. The rest of
EM’s customer base is an untapped
EM’s strength in supply-chain services and RF and microwave technology helped
market for Internet-based,
it increase market share in all Canadian geographic regions. In the Latin American
value-added services.
market, EM’s established presence allowed for the stabilization and maturation
of the business. In South America, EM almost tripled its business, achieving an
EM has proven expertise in Internet
impressive 280 percent growth rate.
technology and supply-chain
management, and already has deep,
EMEA trusted, collaborative relationships
with many key players in the
electronics manufacturing supply
With the acquisition of EBV Elektronik, WBC and Atlas Services (Europe), EM
chain. EM’s innovative service
became the No. 1 electronic components distributor in Europe. Sales reached $2.29
offerings and its e-commerce
billion under the leadership of Axel Hartstang, former CEO of the EBV group
alliances forged during the last
and now president of EM EMEA.
few years ideally position it to
ride the long-term business wave.
As with Kent Components in the Americas, the European acquisitions prompted
the creation of focused business divisions served internally by a common, integrated
pan-European logistical backbone and industry leading supply-chain services.
Germany-based EBV and WBC, which retained their respected brands, specialize
in demand creation for select semiconductor suppliers. BFI-OPTILAS, based in
France, markets RF and microwave devices, optoelectronic components, lasers,
magnetics, sensors and other specialty products across Europe. Avnet Israel is the
largest value-added components distributor in that country. Formally launched
as FY’02 began, Silica™, a semiconductor division and Avnet Time ®, an IP&E
division, are based in the United Kingdom. In South Africa, Avnet Kopp
continued its history of increased revenue performance. IMS Europe, a focused Electronics Marketing opened a Radio Frequency
Design Services Lab and Asia Regional Programming
Center, both Company firsts in Asia.
18. Engineers with Avnet Design Services help Electronics Marketing’s customers develop and design communications-
oriented embedded systems, extending their resource and knowledge base during the critical implementation phase so
they can hit aggressive time-to-market requirements. Below is the Company’s first design center in mainland China.
EM FY 2001
SALES BY REGION
ASIA
service organization, provides supply-chain support for
the EMEA region.
EMEA
AMERICAS
Asia
% OF
In Asia, EM has similarly evolved into a highly focused, responsive and customer-
$ BILLIONS EM'S SALES
oriented organization centered on three geographic regions: Hong Kong and
AMERICAS $5.53 66.7%
EMEA $2.29 27.6% China; Taiwan; and a third region encompassing Southeast Asia, India, Australia,
ASIA $0.47 5.7%
New Zealand and Korea. Harley Feldberg, formerly president of EM’s product
business groups in North America, is president of Avnet Asia. Each of the regions
has its own sales, technical and product management teams dedicated exclusively
to customers and suppliers in their local markets. By concentrating most of EM
EM FY 2001 Asia’s people and energies locally, the region can more effectively serve all major
SALES BY PRODUCT
markets in Asia.
P&E
For the past two years, EM has focused on establishing a presence in the People’s
CONNECTORS Republic of China (PRC), the world’s fastest growing market for electronics.
Although per capita usage rates are still low, the absolute size of China’s market
SEMICONDUCTORS
for telecommunications services and products is already among the largest in the
world, according to the Center for Strategic International Studies. The rate of
growth in China is exciting.
% OF
$ BILLIONS EM’S SALES
The acquisition of Sunrise Technology Limited brings EM an extremely
SEMICONDUCTORS $6.53 78.8%
CONNECTORS $0.74 8.9% successful business model with a focus on technical support, design-in capabilities,
PASSIVES AND
customer and supplier relationships, and logistics services. EM will build on
ELECTROMECHANICAL
that strategic resource. Sunrise operates 22 sales offices in the PRC through its
DEVICES $1.02 12.3%
19. 17
electronics
marketing EM ACCOLADES
Amphenol names Avnet Kent its
I
Distributor of the Year.
The Benelux unit of EM’s Silica
I
division receives Hitachi’s Design
Win of the Year Award for Europe.
Agilent Technologies and
I
Infineon Technologies name
EBV Elektronik their European
Distributor of the Year.
BFi OPTiLAS receives Agilent
I
Technologies’ award for
well-known brands, Sunrise and ChinaTronic, with the management teams of
outstanding contributions to
each remaining intact.
demand creation for its radio
frequency and microwave devices.
EM also continues to develop its relationship with ChinaECNet, established
in FY’00, to help indigenous Chinese companies compete in the Internet-enabled
Murata Electronics designates
manufacturing arena. EM’s alliance with ChinaECNet positions it as a major I
Avnet RF & Microwave its North
provider of products, logistics and technical services to China’s indigenous OEMs.
American Distributor of the Year.
The Chinese market for wireless products will be extremely important for global
Fairchild Semiconductor gives its
electronics manufacturers. According to the research firm Strategies Unlimited, I
CRM Excellence Award to EBV
China has replaced Japan as the world’s second largest cellular phone market,
Elektronik for outstanding
with approximately 75 million mobile subscribers in December 2000. Despite this
customer relationship management
explosive growth, mobile telephones in China have penetrated only 6 percent of
in the electronics industry.
the population. Avnet opened a Radio Frequency Design Services Lab in Singapore
this year, placing EM in an ideal position to create demand for suppliers’ wireless
Avnet Asia is named national
products and operating platforms, such as 802.11 and Bluetooth. I
Semiconductor’s Top Performing
Distributor in South Asia.
Looking Ahead Avnet Sunrise is named its Top
Performing Distributor in
Hong Kong/China.
By finding and leveraging opportunities in the electronics manufacturing
industry’s total available market, EM will emerge from the current down-
turn well-positioned to deliver shareholder value. The combined strategy of
examining every effort in terms of return on capital employed, creating
product-specialized and focused business units, and developing businesses that
generate services revenue not dependent on inventory creates the potential for
better-than-ever performance.
Executives celebrate Avnet’s acquisition of Sunrise
Technology Limited. (left to right) Harley Feldberg,
president, Avnet Asia; Brian Hilton, president, Avnet
Electronics Marketing; C.T. Wong, founder and
chairman, Sunrise; Raymond Tsang, CEO, Sunrise
20.
21. 19
computer
marketing “Our track record of building
specialized divisions, combined
with our focus on adding value
Avnet Computer Marketing’s (CM) specialized business models served the group
to today’s leading computer
well in FY’01, giving it an enviable degree of stability while many in the industry
technologies, has put us in a
struggled to survive. In a year that ended in a severe sales downturn that hit the
leadership position in the
technology sector with particular force, CM continued to gain market share with
marketplace and has enabled us
its major suppliers. In up markets and down, CM has continued to prosper not
to deliver measurable growth
only because of its focused selling models, but also due to its strong management
and profitability for Avnet and
team and its ability to execute.
its shareholders.”
In a Down Market, CM Prospers —Andy Bryant
In the second year with president Andy Bryant at the helm, CM’s model
manifested itself in a record sales performance. Revenue climbed to approximately
$2.85 billion – an increase of more than 33 percent over the previous fiscal year –
while operating profit was up almost 50 percent.
CM started – and ended – FY’01 on the offensive with major acquisitions, each
of which factored strongly in the Company’s performance. CM’s mission: Be the
leader in information technology (IT) value-added distribution by building
channels to market for its suppliers, by creating opportunities for its employees
and by providing outstanding customer satisfaction.
CM goes to market through three focused divisions: Avnet Hall-Mark, Avnet
Enterprise Solutions and Avnet Convergent Technologies. CM targets enterprise
level end-user customers directly through its single-tier solutions integration
channels, and indirectly via the value-added reseller (VAR) community through
its two-tier value-added distribution channels.
Today’s technology market is driven by e-business infrastructure requirements,
the need for enhanced customer relationship management (CRM) and greater
operational efficiencies. These market conditions have created an unsurpassed
need for technology infrastructure, specifically UNIX and Intel-based servers,
data storage, software and network solutions, and services – all designed to
optimize IT performance. CM excels in delivering these complex solutions in a
value-added environment. Engineers install software, storage and networking
products as part of the complex systems assembly process.
22. Engineers in the Computer Marketing Integrated Solutions Center in Chandler, Arizona carefully review customer build
documentation.
Like the customer base it serves, CM is applying IT in
innovative ways to reduce inventory, boost profit margins
and manage cash. For CM’s IT team, FY’01 was a water-
shed year, going live with an e-business platform that may be unique in the
industry. CM quickly realized impressive returns on its IT investments, cutting
sales process costs and forging stronger bonds with customers and suppliers.
CM SALES GROWTH
IN BILLIONS
Avnet Hall-Mark (North America)
2.85
For Avnet Hall-Mark, a value-added distributor of enterprise servers, storage
solutions, software and services, FY’01 was a record year. The productivity gains
2.14
resulting from its new IT infrastructure, the increased efficiencies of its support
1.69
teams, the business synergies following the successful integration of the Savoir
1.50
Technology Group, Inc., and a 40 percent-plus sales growth added up to an oper-
1.16
ating profit that more than doubled year over year. In spite of the weakening
demand in the third and fourth quarters, the division held the No. 1 or No. 2
market share position with Compaq, HP, IBM and Oracle. Sales of Intel
Architecture servers, manufactured by CM’s three major hardware vendors, also
continued their upward spiral as a result of Avnet Hall-Mark’s marketing efforts
97 98 99 00 01
and specialized integration capabilities. In addition, Avnet was the first distributor
ever engaged by EMC, a market leader in enterprise storage solutions.
Led by 18-year Company veteran and division president Rick Hamada, Avnet
Hall-Mark continues to provide the value-added services resellers need to succeed
and profitably grow their businesses. For its suppliers, the division continues to
be a competitive offensive weapon in their battle to gain market share.
Innovation with its suppliers has been central to Avnet Hall-Mark’s success. In
one of the most significant tests of its value to date, the division successfully
participated in an extensive audit of its supply-chain efficiencies conducted by
23. 21
computer
marketing CM INTEGRATIONS
Savoir Technology Group, Inc.
The largest acquisition in CM’s
history makes CM the No. 1
value-added distributor of IBM
mid-range computing products
in the world.
RKE Systems
This European company gives CM
an advantage in the open storage
solutions and Compaq server
arenas, and plays a key role in the
continued growth of its European
Hewlett-Packard (HP) over its entire distribution channel. As a result, Avnet
business. RKE Systems joined
Hall-Mark was selected by HP as one of only two mid-range channel partners.
CM through the acquisition
As part of this groundbreaking initiative, the value-added services the division
of Europe’s VEBA Electronics
once provided as adjuncts to its HP hardware sales have been unbundled and
Group of companies from
are now sold separately for a fee. This has transformed the relationship, with
Avnet Hall-Mark in an outsourcing role for such services as demand management E .ON AG.
and technical help-desk support to HP’s VARs. Beyond changing Avnet Hall-
Kent Datacomm
Mark’s role with HP, this new structure proved the viability of an entirely new
Significantly strengthens CM’s
model for marketing and selling high-margin services – one that has sweeping
networking solutions services
implications across the CM organization with all suppliers and customers.
practice, adding a valuable new
relationship with Cisco Systems.
Avnet Enterprise Solutions (North America) Kent Datacomm became part
of the CM family through the
acquisition of Kent Electronics
Focusing on Fortune 1000 end-user businesses, in a single-tier model, the Avnet
Corporation.
Enterprise Solutions Division (ESD) fine-tuned and simplified its go-to-market
strategy in FY’01, closing the year with revenues approaching $900 million.
That achievement marked a successful send-off for former division president
Brian Armstrong, who joined the Electronics Marketing team as FY’02 began.
He is succeeded by Mark Zerbe, formerly president of Kent Datacomm.
Organizations must know about their customers, and they must be able to access
and manage that information effectively. Enterprise customers clearly understand
the benefits ESD offers as an IT infrastructure architect helping organizations
solve problems and serve their customers more productively. ESD focuses on
data center operations driving customer service and organizational efficiency.
The solutions ESD sells – servers, data storage and leading business applica-
tions – simplify these operations. With the acquisition of Kent Datacomm,
ESD adds an exciting new relationship with Cisco Systems, substantially
strengthening the division’s networking solutions and adding value to its overall
IT solution. The professional services ESD offers simplify the acquisition and An Avnet Enterprise Solutions project engineer upgrades
a customer’s network infrastructure.
24. A Computer Marketing technician audits server design for total quality management purposes before shipping to one of
CM’s global customers.
CM INTEGRATION FACILITIES
CM’s focus on customer satisfaction
drives innovation. In FY’01, the
Product Integration Center and use of these solutions, in many cases substantially
value-added integration facility reducing the associated costs.
ramped up their operations to
five days a week, 24 hours a day,
Avnet Convergent Technologies
increasing manufacturing capacity
by 20 percent and reducing lead
time from seven or eight days A two-tier distributor to North American VARs, Avnet Convergent Technologies
to four or five. (ACT) is a leading provider of networking, mobile computing, wireless and point-
of-sale products and services. ACT serves as a single point of contact for these
convergent technologies and for a wide range of pre- and post-sale services, from
CM FY 2001
SALES BY PRODUCT site surveys for network layouts to load testing and installations, as well as VAR
and end-user training.
SERVICES
SOFTWARE Solutions developed by ACT are growing in demand in the healthcare and retail
sectors, where they can provide enhanced inventory management, help track
customers’ buying habits and automate warehouse operations. ACT is led by Ned
HARDWARE
Kelly, senior vice president and 23-year Avnet veteran. He also heads CM’s
Asia/Pacific operations.
% OF
$ MILLIONS CM'S SALES
HARDWARE $ 2,347.3 82.2% Europe
SOFTWARE $ 317.0 11.1%
SERVICES $ 191.3 6.7%
Avnet Hall-Mark Europe posted sales in excess of $100 million in each of the
second, third and fourth quarters, driving total sales up 57 percent for the year.
Within the division, Avnet Germany increased its Compaq business six-fold and
more than doubled its total revenues. The division remains the No. 1 distributor
for IBM in Europe; No. 1 for HP, Sun Microsystems and EMC in Italy; and No. 1
for IBM/Lotus software in the United Kingdom.
Under the direction of CM Europe president George Smith, a 23-year Avnet
veteran, Avnet Hall-Mark Europe also enjoyed major enhancements in operating
25. 23
computer
marketing CM ACCOLADES
CM boasts two winners of
I
the 2001 IBM Beacon Awards,
recognizing those who create
customized e-business solutions
to help organizations operate
smarter and more efficiently.
The Avnet Enterprise Solutions
division is honored for creating
the “Best Managing Technology
Solution.” The Avnet Hall-Mark
division is named a “Rising Star.”
In tandem with the Applied
efficiency. Inventory levels, for example, were reduced substantially from their I
Computing operating group,
January peak. Improvements in credit collection translated to a working capital
Computer Marketing ranks 3rd
reduction of $22 million from the third to the fourth quarter of the fiscal year. On
in VARBUSINESS magazine’s 2001
a year-over-year basis, accounts receivable declined from 42 percent of sales in FY’00
list of “The Distribution Top 25”
to just 25 percent in FY’01, and inventory fell from 12 percent of sales to 9 percent.
based on wholesale revenues.
Australia For the sixth consecutive year,
I
Avnet Hall-Mark receives the
prestigious IBM Distributor
CM continued to gain momentum in Australia. In FY’01, Avnet Hall-Mark was
Leadership Award, demonstrating
named the exclusive two-tier distributor of IBM AS/400 and RS/6000 systems
a continued commitment to
and storage software on the continent, and continued to be a market leader with
customer service excellence.
Enterasys Networks. ESD remained the No. 1 provider of Compaq solutions in
Australia, and through its relationship with IBM, became the country’s sole
reseller of J.D. Edwards enterprise resource planning solutions. Armed with a
total hardware and software solution, ESD has access to J.D. Edwards’ entire
Australian installed customer base, as well as New Zealand’s.
Looking Ahead
CM has demonstrated a history of leading change rather than reacting to it, recog-
nizing that change must be effective in order to bring strong results. In FY’01,
CM posted four consecutive quarters of positive year-over-year operating profit
growth, consistently placing itself in the top end of its peer group. CM has proven
its ability to convert change into success. That success will be the continued goal
into FY’02 and beyond. The focus will be on effective cash management, while
generating higher margins, with an expected result of increased operating profits.
CM’s strategy continues to be the provision of world-class IT infrastructure solu-
tions that successful, growing companies demand, while concurrently increasing
its higher-margin, fee-for-services business. Computer Marketing technicians audit a rack-mounted
server for quality control purposes.
26.
27. 25
applied
computing “Our strategy for FY’02 is to drive
return on working capital while
developing new product line
Applied Computing (AC) represents another highly successful evolution
relationships that complement
of Avnet’s basic distribution business model, with FY’01 revenues of $1.67
our existing strategic suppliers.
billion. Led by president Ed Kamins since its 1999 inception, this newest of
At the same time, we never lose
Avnet’s operating groups was crafted from segments of Electronics Marketing
sight of our ultimate goal of
and Computer Marketing.
helping customers get to market
first, by providing design support
AC uses commercially available computing technologies to build more highly
and prototype development as
integrated systems for its customers. AC also adds sophisticated technology
well as assembly expertise and
marketing to such products as platforms and servers, boards and modules,
supply-chain services.”
mass storage, peripherals, microprocessors, flat panel displays, networking and
software products, and embedded operating systems. Its related services
—Ed Kamins
include engineering assistance, supply-chain management, financing, physical
distribution and integration of subsystem and end products.
AC helps squeeze time from product development cycles, an all-important goal
for its customers. This market segment is in line for explosive growth. AC,
with its focused line card and specialized, knowledgeable engineering staff, is
well-positioned to capture much of it. As is true for other Avnet segments, AC’s
well-crafted strategic planning during the past few years is now paying off.
The group comprises three divisions focusing on different industry segments
within the original equipment manufacturer (OEM) system- and subsystem-level
components markets. Applied Computing Solutions (ACS) focuses on integrated
solutions and services for OEMs. Applied Computing Components (ACC) serves
system builders and integrators with high performance processors and memory
modules. Applied Computing Enabling Technologies (ACET), new this year,
focuses on the market for storage and other computing technologies in North
America and Europe.
AC came of age this year, establishing a global infrastructure and opening its own
global headquarters in Phoenix, Arizona. The 120,000 square foot facility offers
more manufacturing and systems integration space, and houses a state-of-the-art
distribution warehouse center, lab and technology center. As FY’02 began, AC
received ISO 9001:2000 certification for its North American operations, obtaining
the most comprehensive level of certification available. An Applied Computing technician puts the
final touches on a flat panel display solution.