Other Financial Information
“In the third quarter, we reduced inventory levels by approximately $125 million, or $1.3 billion over the last 12 months. We also generated $81 million in cash flow from operations and repurchased $50 million of shares,” said Raj Agrawal, Arrow’s senior vice president and chief financial officer.
“In line with our ongoing efforts to simplify our operations, we are restructuring the business to drive additional cost savings,” said Mr. Agrawal.
In addition to actions taken to date, the company estimates total restructuring expenses over the next two years of $185 million, including costs of $135 million for efficiency initiatives, as well as costs of approximately $50 million to exit certain lines of non-core business. The company has identified opportunities to reduce annual operating expenses by the end of 2026 by approximately $90 million to $100 million, primarily related to reorganizing and consolidating certain areas of the company’s operations.
1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein. |
Fourth-Quarter 2024 Outlook
- Consolidated sales of $6.67 billion to $7.27 billion, with global components sales of $4.50 billion to $4.90 billion, and global enterprise computing solutions sales of $2.17 billion to $2.37 billion
- Net income per share on a diluted basis of $1.35 to $1.55, and non-GAAP net income per share on a diluted basis of $2.48 to $2.68
- Average tax rate in the range of 23 to 25 percent
- Interest expense of approximately $60 million to $65 million
- Changes in foreign currencies to increase sales by approximately $60 million, and earnings per share on a diluted basis by $0.02 compared to the fourth quarter of 2023
- Changes in foreign currencies to have no impact on growth in sales or earnings per share on a diluted basis compared to the third quarter of 2024
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Fourth-Quarter 2024 GAAP to non-GAAP Outlook Reconciliation |
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NON-GAAP SALES RECONCILIATION |
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Quarter Ended |
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Quarter Ended |
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December 31, |
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December 31, |
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December 31, |
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September 28, |
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(in billions) |
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2024 |
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2023 |
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% Change |
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2024 |
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2024 |
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% Change |
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Global components sales, GAAP |
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$ |
4.50 - 4.90 |
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$ |
5.64 |
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(20%) - (13%) |
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$ |
4.50 - 4.90 |
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$ |
4.95 |
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(9%) - (1%) |
| Impact of changes in foreign currencies |
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— |
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0.04 |
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— |
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— |
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| Global components sales, constant currency |
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$ |
4.50 - 4.90 |
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$ |
5.68 |
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(21%) - (14%) |
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$ |
4.50 - 4.90 |
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$ |
4.95 |
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(9%) - (1%) |
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| Global ECS sales, GAAP |
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$ |
2.17 - 2.37 |
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$ |
2.21 |
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(2%) - 7% |
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$ |
2.17 - 2.37 |
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$ |
1.88 |
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15% - 26% |
| Impact of changes in foreign currencies |
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— |
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0.02 |
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— |
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— |
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| Global ECS sales, constant currency |
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$ |
2.17 - 2.37 |
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$ |
2.23 |
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(3%) - 6% |
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$ |
2.17 - 2.37 |
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$ |
1.88 |
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15% - 26% |
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| NON-GAAP EARNINGS RECONCILIATION |
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Reported GAAP measure |
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Intangible amortization expense |
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Restructuring & integration charges |
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Non-GAAP measure |
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| Net income per diluted share |
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$1.35 to $1.55 |
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$0.10 |
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$1.03 |
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$2.48 to $2.68 |
