Top-tier position in global components distribution industry (along with Avnet Inc.); Geographic and customer diversity; Successful employment of acquisitions in a consolidating industry; and Moderate, but increasing (because of consolidation) barriers to entry. Highly competitive, relatively low-value-added industry; and Variable profitability because of volatility in industry demand. The ratings on Melville, N.Y.-based Arrow Electronics, Inc. reflect a leading market position and good operating performance in the face of challenging industry conditions. These factors are offset by highly competitive, relatively low-margin industry characteristics, as well the potential for variable profitability and debt protection metrics because of volatility in industry demand. Arrow is one of the leading global electronic components and computer products distributors. Arrow reported revenues of $13.6 billion in fiscal
