The results
The company's results for the second quarter of 2008 and 2007 include the items outlined below that impact their comparability:
-- During the second quarter of 2008, the company recorded a restructuring and integration charge of $8.2 million ($5.9 million net of related taxes or $.05 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies.
-- During the second quarter of 2007, the company recorded a restructuring and integration charge of $3.4 million ($2.3 million net of related taxes or $.02 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies and the acquisition of KeyLink.
SIX-MONTH RESULTS
Arrow's net income for the first six months of 2008 was $182.1 million ($1.49 and $1.48 per share on a basic and diluted basis, respectively) on sales of $8.38 billion, compared with net income of $195.5 million ($1.58 and $1.57 per share on a basic and diluted basis, respectively) on sales of $7.54 billion in the first six months of 2007. Sales in the first six months of 2008 increased 11 percent year over year. Pro forma to include the impact of the acquisitions of LOGIX S.A. and KeyLink Systems Group, sales increased 6 percent year over year.
Net income for the first six months of 2008 includes a restructuring and integration charge of $14.7 million ($10.1 million net of related taxes or $.08 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies and a charge, including legal fees, related to a preference claim from 2001 of $12.9 million ($7.8 million net of related taxes or $.06 per share on both a basis and diluted basis). Excluding these items, net income would have been $200.0 million ($1.64 and $1.63 per share on a basic and diluted basis, respectively) for the first six months of 2008.
Net income for the first six months of 2007 includes a restructuring and integration credit of $2.7 million ($2.2 million net of related taxes or $.02 per share on both a basic and diluted basis) primarily related to the gain on the sale of facilities offset, in part, by the aforementioned restructuring initiatives, and the acquisition of KeyLink. Excluding these items, net income would have been $193.3 million ($1.57 and $1.55 per share on a basic and diluted basis, respectively) for the first six months of 2007.
"We have been monitoring the marketplace and our leading indicators very carefully to keep a close watch on trends with our customers and our suppliers. Looking ahead, we believe that total third quarter sales will be between $4.1 and $4.4 billion, with global component sales between $2.85 and $3.05 billion and global enterprise computing solutions sales between $1.25 and $1.35 billion. We expect earnings per share, on a diluted basis, excluding any charges, to be in the range of $.73 to $.78," said Paul J. Reilly, senior vice president and chief financial officer.
