Avnet Q1 2014 sales were up 8.1% year over year to $6.3bn, mostly through acquisitions, particularly Magirus in EMEA TS division and taking over Brightstar.
Adjusted operating income of $199.5m increased 38.1% year over year and adjusted operating income margin of 3.1% increased 68 basis points year over year.
Rick Hamada, Chief Executive Officer, commented: "Our team kicked off the new fiscal year with a solid performance as both operating groups leveraged year-over-year revenue growth into increased margins and returns.
"Enterprise revenue increased 8.1% from the year ago quarter and adjusted operating income grew approximately five times faster than revenue driven primarily by our disciplined approach to portfolio actions and expense management throughout fiscal 2013.
"Adjusted operating income margin of 3.1% increased 68 basis points year over year and return on working capital was up 458 basis points to 19.8%. This represents the first time in seven quarters that these two important metrics expanded year over year. With our improving performance and overall financial profile, we were also pleased to announce our decision to initiate a dividend during our first quarter."
EMEA TS division had revenue of $694.3m, a rise of 9.3% because of acquisitions - organic sales were down -10.5%. CEO Hamada says" "In the September quarter, TS revenue was within our expected range, though at the lower end of expectations. Revenue of $2.4 billion decreased 8.1% sequentially while year-over-year organic revenue was down 3.0% in constant currency."