In the first quarter of 2024, global components sales decreased 24 percent year over year. Americas components first-quarter sales decreased 29 percent year over year. Europe components first-quarter sales decreased 26 percent year over year and decreased 27 percent year over year on a constant currency basis. Asia-Pacific components first-quarter sales decreased 18 percent year over year.

Global Enterprise Computing Solutions

“Our enterprise computing solutions business continues to navigate a mixed IT spending environment. In EMEA, we once again achieved year-on-year billings and gross profit dollar growth in the first quarter, and in North America, we continued to make progress in the market for IT-as-a-service. Looking forward we’re well-positioned to serve the growing demand for cloud and AI-driven solutions,” said Mr. Kerins.

Global Enterprise Computing Solutions (ECS)
		Quarter Ended
		March 30,			April 1,
(in millions)		2024			2023
Global ECS sales		$	1,733		$	1,881
Global ECS operating income, as reported			71			81
Global ECS non-GAAP operating income			73			82

In the first quarter of 2024, global ECS sales decreased 8 percent year over year and decreased 9 percent year over year on a constant currency basis. Europe ECS first-quarter sales decreased 7 percent year over year and decreased 8 percent year over year on a constant currency basis. Americas ECS first-quarter sales decreased 9 percent year over year.

Other Financial Metrics

“In the first quarter, we generated $403 million in cash flow from operations,” said Raj Agrawal, Arrow’s senior vice president and chief financial officer. “Efficient working capital management enabled us to reduce inventory by $390 million in the first quarter and more than $1 billion over the past two quarters. Our strong cash flow generation continued to provide us with ample financial flexibility, and we also repurchased approximately $100 million of shares in the quarter.”

¹ A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.

Second-Quarter 2024 Outlook

• Consolidated sales of $6.20 billion to $6.80 billion, with global components sales of $4.60 billion to $5.00 billion, and global enterprise computing solutions sales of $1.60 billion to $1.80 billion
• Net income per share on a diluted basis of $1.65 to $1.85, and non-GAAP net income per share on a diluted basis of $2.05 to $2.25
• Average tax rate in the range of 23 to 25 percent
• Interest expense of approximately $75 million
• Changes in foreign currencies to decrease sales by approximately $51 million, and earnings per share on a diluted basis by $0.04 compared to the second quarter of 2023
• Changes in foreign currencies to decrease quarter-over-quarter growth in sales by $29 million and earnings per share on a diluted basis by $0.04 compared to the first quarter of 2024

Second-Quarter 2024 GAAP to non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
		Quarter Ended										Quarter Ended
		June 29,				July 1,						June 29,				March 30,
(in billions)		2024				2023				% Change		2024				2024				% Change
Global components sales, GAAP		$	4.60 - 5.00			$	6.68			(31%) - (25%)		$	4.60 - 5.00			$	5.19			(11%) - (4%)
Impact of changes in foreign currencies			—				(0.04	)					—				(0.02	)
Global components sales, constant currency		$	4.60 - 5.00			$	6.64			(31%) - (25%)		$	4.60 - 5.00			$	5.17			(11%) - (3%)
Global ECS sales, GAAP		$	1.60 - 1.80			$	1.83			(13%) - (2%)		$	1.60 - 1.80			$	1.73			(8%) - 4%
Impact of changes in foreign currencies			—				(0.01	)					—				(0.01	)
Global ECS sales, constant currency		$	1.60 - 1.80			$	1.82			(12%) - (1%)		$	1.60 - 1.80			$	1.72			(7%) - 4%

NON-GAAP EARNINGS RECONCILIATION
		Reported GAAP measure		Intangible amortization expense		Restructuring & integration charges		Non-GAAP measure
Net income per diluted share		$1.65 to $1.85		$0.10		$0.30		$2.05 to $2.25

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