Avnet's Q2 results need careful analysis as they include the acquired Premier Farnell business in Europe and have to allow for the pending transfer of Avnet TS to Tech Data this year.
Avnet began reporting the TS business as a discontinued operation in the first quarter of fiscal 2017 and prior periods have been adjusted for comparability.
It was further complicated by changes in the embedded solutions where it says reported revenue of $4.3bn was approximately $75m below the midpoint of our guidance as a result of the decision to reclassify $92m of embedded computing solutions revenue to discontinued operations.
The core Avnet business in Europe rose and margins increased.
Gerry Fay President of Electronics Marketing, says they saw growth in automotive and industrial automation, particularly in the German marketplace and then medical and renewable energy markets were strong for us also.
"I think if you think about gross margins, the team continues to do a very nice job of managing their business, given the realities today of supplier consolidation and things like that. So again, our European team continues to be strong and our book to bill is supporting that. So I look for continued growth out of our European region going forward."