Arrow Electronics reported a 7% drop in sales for the second quarter of 2012, citing challenging economic conditions worldwide. Quarterly earnings fell 27% to $114 million.
Arrow also said it plans to take an additional $20 million in cost and expense reductions going forward.
Despite the losses, Arrow executives said the company continues to perform well in a challenging environment, generating more than $575 million in cash flow from operations over the last 12 months.
Sales in the company’s global enterprise computing solutions (ECS) division rose while sales in its electronic components division fell during the quarter. Global ECS sales grew 2% year-over-year to $1.7 billion, driven by strong growth in Europe, where ECS sales grew 12% year-over-year. ECS sales in the Americas increased 3%.
In the components division, sales fell 11% to $3.45 billion, with Asia Pacific down 6%, the Americas down 4% and Europe down 14%. The results follow a 17% sales decline in the first quarter of 2012.