In 2006, Arrow Electronics:
- Grew sales by nearly 22 percent, from $11.2 billion in 2005 to $13.6 billion
- Increased operating income from $491 million in 2005 to $622 million, an increase of nearly 27 percent*
- Generated net income per share of $2.92, compared with $2.18 in 2005*
- Delivered a return on invested capital of 11.4 percent, with the result that our return on invested capital has exceeded our cost of capital for 12 consecutive quarters
- Reduced long-term debt to $977 million, a more than 14 percent decrease compared with 2005.
- Listening to what our customers and suppliers say about their needs and expectations of us;
- Understanding what we must do as an organization to respond with the right supply chain tools and services; and
- Delivering what our customers and suppliers need to succeed, on a local, regional and global basis.
As we listen, understand and deliver, we are well positioned to capture growth opportunities in both our Global Components and Enterprise Computing Solutions businesses.
Growing in Electronic Components
In response to the increasingly global nature of our customers and suppliers, we formed Arrow Global Components and appointed Michael J. Long, an Arrow executive with more than 20 years of experience, as president. Our worldwide electronic components business posted record sales in 2006 of $10.8 billion, a more than 22 percent increase compared with 2005. Each major regional electronic components business, now part of Arrow Global Components, gained market share and grew both sales and operating income.
Arrow Asia/Pacific serves a booming regional economy that already accounts for nearly 50 percent of worldwide electronic components consumption. In the region, we are a local distributor with global capabilities – a combination that has driven sales to nearly $2.4 billion in 2006, a more than 62 percent increase from 2005. Our combined Asia/Pacific sales in the second half of 2006 exceeded our entire 2004 sales in the region. With the successful 2005 acquisition of Ultra Source Technology Corporation, we expanded our presence in Taiwan, Hong Kong and Mainland China, adding four sales offices and two warehouses to our more than 35 facilities that serve customers in Greater China.
In North America, we continue to target market segments where we see growing demand for electronic technology. In 2006, we formed three new groups to capitalize on opportunities in the high-brightness light emitting diode (HB-LEDs), industrial and transportation market segments.
Growing in Electronic Components
In response to the increasingly global nature of our customers and suppliers, we formed Arrow Global Components and appointed Michael J. Long, an Arrow executive with more than 20 years of experience, as president. Our worldwide electronic components business posted record sales in 2006 of $10.8 billion, a more than 22 percent increase compared with 2005. Each major regional electronic components business, now part of Arrow Global Components, gained market share and grew both sales and operating income.
Arrow Asia/Pacific serves a booming regional economy that already accounts for nearly 50 percent of worldwide electronic components consumption. In the region, we are a local distributor with global capabilities – a combination that has driven sales to nearly $2.4 billion in 2006, a more than 62 percent increase from 2005. Our combined Asia/Pacific sales in the second half of 2006 exceeded our entire 2004 sales in the region. With the successful 2005 acquisition of Ultra Source Technology Corporation, we expanded our presence in Taiwan, Hong Kong and Mainland China, adding four sales offices and two warehouses to our more than 35 facilities that serve customers in Greater China.
In North America, we continue to target market segments where we see growing demand for electronic technology. In 2006, we formed three new groups to capitalize on opportunities in the high-brightness light emitting diode (HB-LEDs), industrial and transportation market segments.
We continue to lead our industry in key financial metrics, grow sales faster than the market and increase our earnings faster than sales. In any business, sales growth that exceeds market growth comes from exceeding customer expectations.