Top-tier position in global components distribution industry (along with Avnet Inc.) Geographic and customer diversity Largely completed industry consolidation Moderate, but increasing, barriers to entry, due to consolidation Increased balance sheet leverage because of acquisitions Higher-than-expected industry volatility Arrow Electronics Inc. ratings reflect a leading market position, offset by a leveraged financial profile and weak debt protection measures. Melville, N.Y.-based Arrow is one of the leading global electronic components and computer products distributors. However, economic weakness and reduced levels of technology spending have resulted in steep revenue and earnings declines since 2000, particularly in the electronic components sector. Arrow reported a 23% decline in revenues, to $1.8 billion, in the quarter ended June 30, 2002, from the year-earlier level. The
