The rating on Phoenix-based Avnet Inc. reflects the company's strong market position. Highly competitive industry conditions and a volatile global technology spending environment offset this strength. With fiscal 2010 annual revenues (ending June) exceeding $19 billion, Avnet is one of the leading global distributors of electronic components and computer products. The company has a history of successfully using acquisitions to enhance its market position and supplier base. The company's focus on cost controls and the realization of synergies from acquisitions have bolstered its EBITDA (including capitalized operating leases) margin. The company's EBITDA margin (excluding restructuring charges) is in the 4% area. Standard & Poor's Ratings Services expects Avnet to sustain current profitability levels, given our expectation of continued cost management...
Companies mentioned in this report are: Avnet Inc.
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