Avnet's top line growth stalled in Q1 largely due to the testing macroeconomic landscape in the Europe, the Middle East and Africa (EMEA) after seven consecutive quarters of increases. Pro-forma revenues for the trading period ended 1 October were flat on a constant currency basis at $6.4bn (£4bn), operating profit was up 14.7 …
"operating profit was up 14.7 per cent"
Certainly in Q1, EMEA did not perform well. This could have been a consequence of integration of EMEA acquisitions and a more general slowing down of activity in some sectors. While GAAP operating income for the Group was up 14.7%, adjusted operating income was relatively flat at 0.2%. Rick Hamada makes reference to the relative strength of computer business in Q1 outside EMEA. My gut feel is that majors will find it more difficult to grow consistently across all geographies and fewer still will be able to achieve this without further acquisition.