Arrow Electronics (NYSE: ARW) is a Fortune 500 company headquartered in Melville, New York. The company specializes in distribution and value added services relating to electronic components and computer products.

Arrow Electronics, Inc. (Arrow), incorporated in 1946, is a provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. As of December 31, 2010, Arrow served over 1,200 suppliers, and over 115,000 original equipment manufacturers (OEMs), contract manufacturers (CMs) and commercial customers. Serving its industrial and commercial customers as a supply chain partner, the Company offers both a spectrum of products and a range of services and solutions, including materials planning, design services, programming and assembly services, inventory management, and a variety of online supply chain tools. The Company has two segments: the global components business segment and the global enterprise computing solutions (ECS) business segment.
In March 2011, the Company acquired RF, Wireless and Power Division (RFPD), and certain other assets of Richardson Electronics, Ltd. On January 3, 2011, Arrow acquired Nu Horizons Electronics Corp. In December 2010, Arrow acquired Diasa Informatica, S.A., and all of the assets and operations of INT Holdings, LLC, doing business as Intechra. In October 2010, it acquired Eshel Technology Group, Inc. In September 2010, it acquired Shared Technologies Inc. In August 2010, the Company acquired Transim Technology Corporation. In June 2010, it acquired PCG Parent Corp., doing business as Converge, and Sphinx Group Limited. In April 2010, Arrow acquired Verical Incorporated, an e-commerce business.
The Company’s customers include manufacturers of consumer and industrial equipment (including machine tools, factory automation and robotic equipment), telecommunications products, automotive and transportation, aerospace and defense, scientific and medical devices, and computer and office products. Its customers also include value-added resellers (VARs) of enterprise computing solutions. As of December 31, 2010, Arrow maintained over 200 sales facilities and 30 distribution and value-added centers in 52 countries, serving over 80 countries.
Global Components
The Company's global components business segment is a distributor of electronic components and related services, which covers the electronic markets, which include the Americas; Europe, Middle East, and Africa (EMEA), and the Asia Pacific region. The Americas include sales and marketing organizations in Argentina, Brazil, Canada, Mexico and the United States. In the EMEA region, Arrow operates in Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Israel, Italy, Latvia, Lithuania, the Netherlands, Norway, Poland, Portugal, Romania, the Russian Federation, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine and the United Kingdom. In the Asia Pacific region, Arrow operates in Australia, China, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam.
Global ECS
Arrow’s global ECS business segment is a distributor of enterprise and mid-range computing products, services and solutions to VARs in North America and the EMEA region, and provider of communications products and related services in North America. As of December 31, 2010, the global ECS geographic footprint had expanded from two countries (the United States and Canada) to 28 countries. North America includes network operating centers and sales and marketing organizations in the United States and Canada. In the EMEA region, the global ECS business segment operates in Austria, Belgium, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Israel, Latvia, Lithuania, Luxembourg, Morocco, the Netherlands, Norway, Poland, Portugal, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom. Global ECS provides VARs with value-added services, including but not limited to, vertical market expertise, systems-level training and certification, solutions testing at Arrow ECS Solutions Centers, financing support, marketing augmentation, complex order configuration, and access to a one-stop-shop for mission-critical solutions.

The beginning of the decline in the U.S. stock markets in 2000 signaled potential difficulties for Arrow's continued expansion. By 2001, the company faced significant declines in its revenues and profits. Demand for computers of all kinds declined as businesses and consumers significantly reduced purchases. The new Internet commerce industry shrank, as many enterprises went out of business. The rapidly expanding telecommunications industry found itself saddled with massive debt and severe overcapacity.
In response to these developments, the company reduced its inventory by 50 percent and eliminated 1,700 employees worldwide. Nevertheless, Arrow's sales declined 22 percent from $13 billion in 2000 to $10.1 billion in 2001. It recorded a profit of $357.9 million in 2000, but a loss of $73.8 million in 2001.
Sales continued their decline during 2002's first half. Sales declined 32 percent from $5.5 billion during the first half of 2001 to $3.7 billion during the same period of 2002. Profit declined from a $700 thousand gain to a $607 million loss. Arrow responded by selling its Gates/Arrow unit, which sold PCs, printers, other peripherals, and software, for $44.7 million in cash.
Principal Subsidiaries:Arrow Electronics International, Inc. (100%); Arrow Electronics Canada Ltd. (100%); Schweber Electronics Corporation (100%); 10556 Newfoundland Ltd. (100%); Schuylkill Metals of Plant City, Inc. (100%); Hi-Tech Ad, Inc. (100%); Consan, Inc. (100%); Arrow Electronics (Delaware), Inc. (100%); Arrow Electronics Funding Corp., (100%); Arrow Electronics Real Estate, Inc. (100%); Arrow Electronics (U.K.), Inc. (100%); Arrow Electronics South Africa, LLP (99%); Arrow Altech Holdings (Pty) Ltd. (50.1%); Panamericana Comercial Importadora, S.A. (66.67%); Elko C.E., S.A. (70%); Eurocomponentes, S.A. (99.99%); Macom, S.A. (70%); Compania de Semiconductores y Componentes, S.A. (70%); Arrow Electronics Asia Pacific, Inc. (100%); Arrow Electronics, Holdings Pty Ltd. (100%); Components Agent (BVI) Ltd. (90%); Texny (Holdings) Ltd. (100%); Arrow Strong Elkectronics Co. Ltd. (100%); Arrow Asia Distribution Ltd. (100%); AE Logistics Sdn Bhd (100%); Arrow/Ally, Inc. (75%); Arrow Components (NZ) Ltd. (75%); Arrow Electronics (CI) Ltd. (100%); Marubun-Arrow USA, LLC (50%); VCE Virtual Chip Canada, Inc. (49%); Technologies Interactives Mediagrif, Inc. (10%); Arrow Electronics Mexico, S. de R.L. de C.V. (100%); Dicopel, Inc. (60%); Dicopel S.A. de C.V. (60%); The Performance Consortium, LLC (50%); Wyle Electronics, Inc. (100%); Wyle Electronics de Mexico, S. de R.L. de C.V. (100%); Wyle Electronics Caribbean Corp. (100%); Marubun Corp. (5.2%).
Principal Competitors:Avnet; Pioneer-Standard Electronics; Rexel; Premier Farnel; Ingram Micro; Graybar Electric; WESCO International; Advanced MP Technology; All American Semiconductor; Future Electronics; Bell Microproducts; Tech Data.


OVERALL
Beta: 1.59
Market Cap (Mil.): $5,265.98
Shares Outstanding (Mil.): 115.51
Annual Dividend: --
Yield (%): --
FINANCIALS
ARW Industry Sector
P/E (TTM): 10.20 11.05 17.05
EPS (TTM): 195.36 -- --
ROI: 10.89 4.79 3.26
ROE: 16.51 5.97 5.84


Statistics:
Public Company
Incorporated: 1935 as Arrow Radio
Employees: 12,400 (2001)
Sales: $10.1 billion (2001)
Stock Exchanges: New York
Ticker Symbol: ARW
NAIC: 421430 Computer and Computer Peripheral Equipment and Software Wholesalers; 421690 Other Electronic Parts and Equipment Wholesalers

Key Dates:
1935: Founded as Arrow Radio.
1968: Roger E. Green, John C. Waddell, and B. Duke Glenn, Jr., pay $1 million for the company.
1971: Arrow becomes the tenth largest electronic parts distributor in the United States.
1974: Arrow is the first electronic parts distributor to introduce a computerized inventory system.
1979: Arrow acquires Cramer Electronics, the nation's second largest electronic parts distributor.
1980: A fire kills 13 of Arrow's senior executives.
1985: Arrow buys 40 percent of Spoerle Electronic, Germany's largest electronic parts distributor.
1988: Arrow purchases Kierulff Electronics, the fourth largest electronics distributor in the United States.
1991: Arrow buys Lex Electronics and Almac Electronics Corporation. It buys 50 percent of Silverstar Ltd., an Italian distributor.
1992: Arrow buys distribution businesses in France and the United Kingdom. Spoerle buys a distributor in Germany.
1993: Arrow buys Component Agents Ltd., a Pacific Rim distributor; Zeus Components, Inc., a distributor specializing in supplying the U.S. military; CCI Electronique, a French distributor; and majority interests in Amitron S.A. and the ATD Group, distributors in Spain and Portugal.
1994: Arrow buys Field Oy of Finland, TH:s Group of Norway, Exatec A/S of Denmark, and two Australian distributors. It also buys Gates/FA Distributing, Inc. and Anthem Electronics in the United States.
1995: Arrow buys Components + Instrumentation (NZ) Ltd. of New Zealand.
1997: Arrow buys a United Kingdom distribution business and Conson Partners of the United States. It buys 51 percent of Support Net and forms a joint venture in South Africa.
1998: Arrow buys U.S. distributor Scientific and Business Minicomputers and Unitronics Componentes, a distributor in Spain and Portugal. It joins Marubun of Japan in a joint venture.
1999: Arrow buys Richey Electronics and the distribution group of Bell Industries in the United States. It buys majority stakes in Brazilian and Argentine distributors. It buys a Swiss distributor.
2000: Arrow buys Wyle Electronics and MOCA of the United States. It adds French, Israeli, Scandinavian, and Mexican distributors to its operations.
2002: Arrow sells its Gates/Arrow unit.
Name Age Since Current Position
Long, Michael 52 2009 Chairman of the Board, President, Chief Executive Officer
Waddell, John 73 1994 Independent Non-Executive Vice Chairman of the Board
Reilly, Paul 54 2009 Chief Financial Officer, Executive Vice President - Finance and Operations
Kong, Peter 60 2009 President - Arrow Global Components
Bryant, Andrew 55 2008 President - Arrow Global Enterprise Computing Solutions
Brown, Peter 60 2001 Senior Vice President, General Counsel, Secretary
McMahon, John 58 2007 Senior Vice President - Human Resources
Duval, Daniel 74 2006 Lead Independent Director
Hanson, John 69 1997 Independent Director
King, Roger 71 1995 Independent Director
Perry, Barry 64 1999 Independent Director
Patrick, Stephen 61 2003 Independent Director
Keeth, Martha 64 2004 Independent Director
Hill, Richard 59 2006 Independent Director
Hamilton, Gail 61 2008 Independent Director
Asherman, Philip 60 2010 Independent Director
Kerin, Andrew 47 2010 Independent Director

Address:
25 Hub Drive
Melville, New York 11727
U.S.A.
 
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